I have worked with manufacturers in my lifetime in garments, electronics and apparel. I would say there is a 99% Flextronics will not do a 30/60/90 days payable. Simple reason is that the sales to date is $AU1m and NUH is still posting out orders. You will need at least 3 years of solid sales numbers, which means at least 4 years of revenue assuming the very first year is exponential expansion. Flextronics see NUH as a "exciting new product" but Flextronics just focuses on their 35% manufacturing margin. Put yourself in Flextronic shoes, why would you provide a 30/60/90 day payables for a company that has just started to sell their product. You already have Apple, Microsoft, Dell etc under your umbrella that are doing hundreds of millions per year.
NUH can certainly do a convertible however most convertibles for a fledging company will include a nice interest rate (10-12%) and an OPTION to convert into shares (usually a VWAP of 5-10days before conversion). Just ask your self the question "why fund NUH and limit yourself to 10-12% return when you could also have the ability to own a portion of the company if it really takes off". This doe NOT mean that you automatically convert but having the option to convert to shares would be nice.
As for the "margin forecast" I feel that the best to do this is actually Flextronics. I know doing 4,000 units (pre-sales) and 40,000 units are not going to be same per unit. Doing 400,000 per year as opposed to 40,000 units per year would have a different cost curve as well.
NUH Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
(20min delay)