We completed a plant tour to Techcomp?s manufacturing plant last week. Key takeaways include: a) customer additions in the OEM/ODM business, including a major US brand owner which has placed orders for a new range of spectrophotometer used for testing the content of oil in varying water conditions; b) Techcomp?s own brand products are also gaining market traction overseas; the company has also received product interest from customers in the UK, India and Japan, which we expect would become mid term sales catalysts; c) On the operations side, rationalisation of manufacturing facilities have resulted in improved workflow and higher efficiencies; d) With improved demand-supply dynamics, Techcomp has raised ASP for its branded products by RMB 1,000 or ~5%. e) the group is also adding new equipment and capabilities to ramp up commercial production for a series of products, including the Bio-safety cabinets and chromatographs. Overall, we expect pretax profit contribution from manufacturing division to increase to 43% this FY, representing yoy growth of 50%. Profit margins should improve from higher utilisation and absence of start up costs.