Multi-Chem

[weijian]

Full year result is out, the co declared S$0.177 full year dividend witch is more than 50% improvement from last year, hope we could enjoy many more years of good dividend to come.

The profit was affected by some of non controllable factors such Jobs Support Scheme and foreign exchange loss etc

FY21 may have been a high water mark (in profitability). Besides reduction in JSS and FX losses, the overall business's GP and higher costs have eroded profitability.

Boss Foo made a good move back in 2021, to use its existing cash hoard to increase M-TECH Spore's stake by 23.5% to become fully owned. Without this increased stake, profitability would have dropped close to 27% compared to the current 20% YoY.

The increase in dividend (coming from a base of low dividend payout ratio) was expected but I have to admit that the quantum was on the upper side of expectation. In all, VB BlueKelah has pretty good judgement of character I would say.