Spindex Industries

[weijian]

Hello weijian,

thanks for your reply. Great explanation on paragraph 2 with regards to existing target coy capabilities unable to scale up and acquire more revenue.

I think for paragraph 1, is quite subjective. In my day to day life I have some knowledge on cnc machines. It is quite difficult to keep setting it for different products. Once set most machinist do not want to tweak till they have made enough quantities. So i suppose the main contractor would not want to buy a cnc machine (used to cost millions but now with china made could be cheaper) to undercut their subcontractors if the quantities is not significant.

hi wj1984,

There are different optimization methods for high mix/low volume and low mix/high volume mfg scenarios. For example, one could be dedicating certain tools for certain processes to minimize downtime. Since every industry is different, I will probably not try to elaborate further...

As for made-in-china CNC machines, a SME boss once boasted to me that her CNC machines are far superior to her Chinese peers and she has been active in those Guangdong trade fairs. That was 2 years ago and I am not sure if it still holds true now though. In the last decade, the Chinese have been pioneering a lot of new concepts - super app (Wechat), entertainment dining where queuing up is part of the experience (Haidilao), freemium gaming to blind box retail toys. Since their semiconductor and car mfg industry is coming up real fast, only a matter of time their "more advanced type" of mfg dominates I suppose.

[wj1984]

Hello weijian,

thanks for your reply. Great explanation on paragraph 2 with regards to existing target coy capabilities unable to scale up and acquire more revenue.

I think for paragraph 1, is quite subjective. In my day to day life I have some knowledge on cnc machines. It is quite difficult to keep setting it for different products. Once set most machinist do not want to tweak till they have made enough quantities. So i suppose the main contractor would not want to buy a cnc machine (used to cost millions but now with china made could be cheaper) to undercut their subcontractors if the quantities is not significant.

hi wj1984,

There are different optimization methods for high mix/low volume and low mix/high volume mfg scenarios. For example, one could be dedicating certain tools for certain processes to minimize downtime. Since every industry is different, I will probably not try to elaborate further...

As for made-in-china CNC machines, a SME boss once boasted to me that her CNC machines are far superior to her Chinese peers and she has been active in those Guangdong trade fairs. That was 2 years ago and I am not sure if it still holds true now though. In the last decade, the Chinese have been pioneering a lot of new concepts - super app (Wechat), entertainment dining where queuing up is part of the experience (Haidilao), freemium gaming to blind box retail toys. Since their semiconductor and car mfg industry is coming up real fast, only a matter of time their "more advanced type" of mfg dominates I suppose.

Hello weijian,

True on the optimization methods for different types of products.

Seems like you are also in the west side of Singapore industry. My regular supplier for machining now buys his cnc machine from china but my army friend who does o&g still swears by the European manufacturers which are a lot more expensive (huge capex therefore the downtime issue i mention earlier). I actually went to see the target coy website and the machines they are using looks like from Europe

[wj1984]

Finally after almost 8 years another offer to potentially take Spindex private...

https://links.sgx.com/FileOpen/Spindex_H...eID=854108

From the document can see its an external party making an offer, wonder if the Tans would make things difficult for the offeror to conduct DD like previously back in 2017...

anyway GVT which recently took private also had something similar...

June 1st they issued the same holding announcement... July 1st they gave an update and July 10th the offer was tabled...

valuation was at 1.4x NAV... That would be good news for Spindex if the valuations are the same... 1.5 x 1.4 = 2.1

we can only hope...