Sunright Limited (S71) AI Stock Analysis

5 Followers

Sunright Limited

(SGX:S71)

Select Model

Rating:50Neutral

Price Target:SGD 0.41▲(0.00% Upside)

Action:reiterated

Date:10/03/26

The overall score of 50 reflects a company in a precarious turnaround. The primary strength is a fortress-like balance sheet with low debt, which provides a significant safety net. This is offset by major operational concerns: a dramatic collapse in gross margins and a core business that remains unprofitable at the operating level. While short-term price momentum is slightly positive, the negative P/E ratio and negligible dividend yield offer no valuation support. The company is well-capitalized to weather its challenges, but a return to sustainable profitability is not yet evident.

Positive Factors

Revenue ReboundThe 2026 rebound shows the business can regain top-line momentum after prior declines. If maintained, renewed revenue growth can improve operating leverage, support reinvestment, and strengthen the company’s market position over the next several quarters.

Negative Factors

Thin ProfitabilityVery thin net profitability and negative operating margin indicate that revenue is not yet translating into consistently healthy operating earnings. This leaves limited protection against cost pressure and makes sustainable earnings improvement dependent on better cost structure and execution.

Sunright Limited (S71) vs. iShares MSCI Singapore ETF (EWS)

Market Cap: SGD 49.74M
Dividend Yield: 0.49%
Average Volume (3M): 39.38K
Price to Earnings (P/E): 35.0
Beta (1Y): 0.64
Revenue Growth: 17.73%
EPS Growth: ―
Country: Singapore
Employees: 920
Sector: Technology
Sector Strength: 61
Industry: Semiconductors

Sunright Limited Business Overview & Revenue Model

Company Description

Sunright Limited operates as an investment holding company, specializing in providing essential semiconductor test and burn-in services to the global semiconductor and electronics manufacturing sectors. The firm performs burn-in procedures on a wide...

Sunright Limited Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is a clear strength with low debt and a conservative capital structure (Score 72). However, the income statement shows fragile profitability with collapsed gross margins and a negative EBIT margin (Score 35). Cash flow is strained, with strong operating cash flow offset by persistent negative free cash flow (Score 45). The overall profile is of a well-capitalized company struggling with operational profitability.

Income Statement

35Negative

Balance Sheet

72Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Jul 2026	Jul 2025	Jul 2024	Jul 2023	Jul 2022
Income Statement
Total Revenue	89.63M	85.92M	76.97M	82.03M	88.31M	100.72M
Gross Profit	76.23M	21.14M	66.55M	68.69M	71.43M	79.08M
EBITDA	19.06M	14.60M	10.24M	19.88M	11.15M	15.68M
Net Income	1.42M	1.42M	-5.83M	2.23M	-3.11M	-3.98M
Balance Sheet
Total Assets	176.05M	176.05M	158.92M	172.16M	176.13M	168.61M
Cash, Cash Equivalents and Short-Term Investments	90.29M	90.29M	87.64M	99.64M	92.19M	78.42M
Total Debt	20.77M	20.77M	18.09M	26.00M	31.69M	13.12M
Total Liabilities	48.07M	48.07M	36.29M	44.95M	49.55M	32.52M
Stockholders Equity	72.07M	72.07M	69.24M	73.88M	72.27M	77.98M
Cash Flow
Free Cash Flow	-737.00K	-614.00K	1.04M	7.52M	-6.17M	-19.61M
Operating Cash Flow	16.07M	16.19M	6.64M	12.53M	7.92M	9.53M
Investing Cash Flow	-18.89M	-19.02M	2.74M	-13.82M	-19.92M	2.87M
Financing Cash Flow	-1.68M	-1.68M	-9.88M	-8.61M	17.27M	408.00K

Sunright Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price0.41

Price Trends

50DMA0.42Negative

100DMA0.47Negative

200DMA0.49Negative

Market Momentum

MACD-0.01Negative

RSI50.12Neutral

STOCH54.29Neutral

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 0.41 is above the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.42, and below the 200-day MA of 0.49, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 50.12 is Neutral, neither overbought nor oversold. The STOCH value of 54.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:S71.

Sunright Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

SG:S71 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SG:5DD	77Outperform	SGD 319.77M	17.04	33.93%	2.55%	26.44%	53.56%
SG:558	67Neutral	SGD 1.69B	24.76	14.80%	2.61%	26.73%	58.42%
SG:E28	62Neutral	SGD 871.37M	20.49	7.99%	1.49%	1.00%	-1.32%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SG:AWX	57Neutral	SGD 2.17B	50.00	8.82%	0.52%	14.91%	226.44%
SG:S71	50Neutral	SGD 45.44M	35.00	1.96%	0.49%	17.73%	―

* Technology Sector Average

Performance Comparison

SG:S71 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SG:S71	Sunright Limited	0.41	0.18	78.41%
SG:5DD	Micro-Mechanics (Holdings)	2.35	0.70	42.60%
SG:558	Ums Integration Limited	1.84	0.74	67.12%
SG:AWX	AEM Holdings Ltd.	7.10	5.34	302.95%
SG:BDR	Willas-Array Electronics (Holdings) Limited	0.40	-0.64	-61.54%
SG:E28	Frencken Group Limited	1.84	0.34	22.34%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 03, 2026

Sunright Limited AI Stock Analysis