Sunright Limited (S71) AI Stock Analysis

• Market Cap: S$50.96M
• Dividend Yield: N/A
• Average Volume (3M): 62.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -11.04%
• EPS Growth: -360.44%
• Country: SG
• Employees: 2,104
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): <0.01
• Shares Outstanding: 122,806,000
• 10 Day Avg. Volume: 54,830
• 30 Day Avg. Volume: 62,970
• PEG Ratio: 0.01
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 26.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: S$0.43 ▲(97.27% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held back mainly by weak financial performance (declining revenue, negative profitability, and deteriorating free cash flow), despite manageable leverage and strong gross margins. Technicals are supportive with the price above key moving averages, but overbought indicators (high RSI and Stoch) add near-term risk. Valuation is helped by an exceptionally high dividend yield, though the negative P/E underscores ongoing losses.

Positive Factors

Strong gross margins

An 86% gross margin is a durable structural advantage: it implies strong unit economics and pricing power in the company's manufacturing or product mix. Over 2-6 months this margin can absorb input cost swings, support reinvestment, and provide room to restore operating profits if revenue stabilizes.

Low leverage

A debt-to-equity of 0.26 indicates conservative financial structure, lowering refinancing and liquidity risk. This balance sheet flexibility supports capital allocation for capex, dividends, or strategic moves over the medium term without excessive interest burdens, preserving operational resilience.

High dividend yield

A very high dividend yield signals a durable shareholder-return focus that can attract income investors and anchor expectations. If management maintains distributions, this provides a steady return stream independent of capital gains and can stabilize investor base while strategic fixes are implemented.

Negative Factors

Declining revenue & losses

Falling revenue combined with negative net margins is a structural concern: it reduces internal funds for R&D, marketing, and capacity, undermines scale economics, and makes it harder to recover profitability. Persistent top-line pressure limits turnaround options and prolongs capital strain.

Weak cash generation

A steep decline in free cash flow and low FCF-to-profit conversion constrains the company's ability to fund capex, sustain dividends, or pay down debt from operations. Over months this reduces strategic flexibility and increases dependence on external financing or asset sales to meet commitments.

Negative return on equity

A negative ROE indicates the company is destroying shareholder value despite controlled leverage. This reflects operational inefficiencies or unprofitable deployments of capital; if persistent, it erodes equity, limits access to capital, and pressures strategic options over the medium term.

Sunright Limited Business Overview & Revenue Model

Company Description

Sunright Limited, an investment holding company, engages in the provision of semiconductor test and burn-in services to semiconductor and electronics manufacturing industries. The company offers burn-in services for a range of integrated circuits, such as memories, micro-controllers, microprocessors, digital signal processors, etc., as well as turnkey services, including wafer sort, test, burn-in, mark, scan, and drop ship. It provides burn-in support, burn-in equipment, and testing services; manufactures parallel test/burn-in boards, test interface board assemblies, and probe cards; and designs, develops, and delivers hardware and software products for burn-in parallel tests that comprise parallel test burn-in systems, and handling and storage products. In addition, the company offers design, engineering, and manufacturing services for electronic products to the aerospace, automotive, computing, consumers' electronics, industrial, medical, and mobile OEM customers. Further, it assembles electronic and electrical components; provides research and development services for burn-in and test related activities; and trades in and distributes high-technology electronic products. Sunright Limited operates in Singapore, Malaysia, Mainland China, Taiwan, Thailand, Vietnam, the Philippines, India, South Korea, the United States, and internationally. The company was incorporated in 1978 and is headquartered in Singapore.

How the Company Makes Money

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Sunright Limited Financial Statement Overview

Summary

Financials are mixed but skew weak: revenue declined (-6.47%) and profitability is negative (net margin -7.57% and negative EBIT margin). The balance sheet shows manageable leverage (debt-to-equity 0.26) but negative ROE (-8.42%). Cash generation is also weak with sharply lower free cash flow growth (-63.31%) and low cash conversion (OCF/net income 0.22; FCF/net income 0.16), partially offset by a very strong gross margin (86.46%).

Income Statement

Sunright Limited's income statement shows a declining revenue trend with a negative revenue growth rate of -6.47% in the latest year. The gross profit margin remains strong at 86.46%, indicating efficient cost management. However, the net profit margin is negative at -7.57%, reflecting profitability challenges. The EBIT margin is also negative, suggesting operational inefficiencies. Overall, while the company maintains a high gross margin, declining revenues and negative net margins are concerning.

Balance Sheet

The balance sheet of Sunright Limited reveals a moderate debt-to-equity ratio of 0.26, indicating manageable leverage. However, the return on equity is negative at -8.42%, pointing to inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets. While leverage is under control, the negative ROE is a significant weakness.

Cash Flow

Sunright Limited's cash flow statement shows a significant decline in free cash flow growth at -63.31%, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is 0.22, indicating limited cash flow relative to net income. The free cash flow to net income ratio is 0.16, suggesting challenges in converting profits into free cash flow. Overall, the cash flow position is weak, with declining free cash flow and limited cash conversion efficiency.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	76.97M	82.03M	88.31M	100.72M	111.40M
Gross Profit	66.55M	68.69M	71.43M	79.08M	80.73M
EBITDA	10.24M	19.88M	11.15M	15.68M	25.13M
Net Income	-5.83M	2.23M	-3.11M	-3.98M	1.31M
Balance Sheet
Total Assets	158.92M	172.16M	176.13M	168.61M	173.56M
Cash, Cash Equivalents and Short-Term Investments	87.64M	99.64M	92.19M	78.42M	98.30M
Total Debt	18.09M	26.00M	31.69M	13.12M	9.33M
Total Liabilities	36.29M	44.95M	49.55M	32.52M	29.30M
Stockholders Equity	69.24M	73.88M	72.27M	77.98M	84.08M
Cash Flow
Free Cash Flow	1.04M	7.52M	-6.17M	-19.61M	-522.00K
Operating Cash Flow	6.64M	12.53M	7.92M	9.53M	13.58M
Investing Cash Flow	2.74M	-13.82M	-19.92M	2.87M	-16.09M
Financing Cash Flow	-9.88M	-8.61M	17.27M	408.00K	-6.06M

Sunright Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S71, the sentiment is Positive. The current price of 0.22 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.28, and below the 200-day MA of 0.23, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 78.09 is Negative, neither overbought nor oversold. The STOCH value of 91.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:S71.

Sunright Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
S71	59 Neutral	S$50.96M	-4.64	-8.28%	―	-11.04%	-360.44%
BIX	54 Neutral	S$39.17M	―	2.00%	26.09%	4.89%	―