Restructuring process is almost done


Largest OEM for speaker systems globally. Founded in 1971 and listed on the SGX in Nov 1998. Eastern Asia Technology (EASTECH) is
specialized in the design and manufacture of acoustic and digital consumer
electronic products. It provides value-added total turnkey solutions to major
branded names via its strong research & development capabilities and
vertically-integrated manufacturing capabilities. Major customers included
Philips, LG, Sony and Panasonic.


Well placed despite an expected slowdown in electronics outsourcing. According to iSuppli, the global EMSs will see a slowdown in growth rates. It estimates about 7.2% compound growth rate between 2007 and 2012, compared to a CAGR of 15.5% from 2002 to 2007 and industry CAGR of
49% during the 1990s. In NRA view, the slowdown in growth rate means
there will be more consolidation in the EMS industry in the next one to two
years.

Risks. Wage price spiral in China over the past few years. This may put
pressure on its operating cost. However, through increase in automation,
the group is less vulnerable to the uptrend in staff costs.

Fair Value S$0.08