Multi-Chem

[BlueKelah]

I unloaded too early   Sold MC to buy distressed stocks during COVID outbreak.

Lol this type is solid cash cow company which will boom when investors discover it or ultimately someone does a GO on it. Well boss has already almost 70% i think with business stable even in COVID as the economy moves to work from home and delivery and more IT based. Sooner or later he will make a GO or arrange for a buyout from a big tech firm from Japan or maybe even China. 

Now we just need the CIMB folks to write an article and push it to $2

[cif5000]

Now we just need the CIMB folks to write an article and push it to $2

$2 seems like a good target price LOL!

The IT distribution business was $127m in FY09 and has grown to $453m in FY19. That's ~10% CAGR over 10 years. That was achieved while paying out a good proportion of the profits every year. 

Interestingly, the market seems to value the company using "discount to Net Asset" method, which is rather overly-conservative. More than 50% of the market cap is backed by cash on its balance sheet.

So ya, if the market is willing to apply a good "Price to earning ratio" and "net of cash", your prediction may come true.

[brattzz]

HY June 2020

PROFIT AFTER TAX (“PAT”)
In 1H2020, the Group achieved PAT of $8.4m as compared to $4.8 in 1H2019, mainly due to the increase
in PBT, offset by the increase in tax expenses. The increase in tax expenses from $2.2m in 1H2019 to
$2.5m in 1H2020 was mainly due to higher profit attained in 1H2020.

Cash and cash equivalents stood at $71.3m as at 30 June 2020, up from $48.8m as at 30 June 2019.

Shares : 90m shares, backed by 71m c&ce, NAV : $1.25,

CEO brought in cheap at $1.03 in Aug 2020, owns 69% of company already...

FY2019 : 10m PAT = 4.4cts dividends (disregard 2.2cts special)
HF2020 : 8.4m PAT achieved, 6 months to go to FY2020, to exceed the FY2019 profit, so minimum 4.4cts dividends achieved too?

Some infos,
1) It's not a chemical company! :O
2) It's a distributor business of IT security solutions,
3) It provides training services from principals brands to local application clients

[Dosser]

2H results:

https://links.sgx.com/FileOpen/Multi-Che...eID=647578

Profits after tax up a lot on 2H 2019, by 128%, even up on 1H. 171% up in 2H when non-controlling interests are excluded.

Dividend effectively maintained, huge increase in cash on FD. Not sure why they are stuffing quite so much into FD at, presumably, nominal interest rates.

[BlueKelah]

2H results:

https://links.sgx.com/FileOpen/Multi-Che...eID=647578

Profits after tax up a lot on 2H 2019, by 128%, even up on 1H. 171% up in 2H when non-controlling interests are excluded.

Dividend effectively maintained, huge increase in cash on FD. Not sure why they are stuffing quite so much into FD at, presumably, nominal interest rates.

Same story bro, eventually will be privatise by takeover. Then boss no need spend so much money to privatise. Cash cow. I Sold some I got at 80c. for profit take a few weeks back. Now have to reload more haha since it is likely this cash cow will continue to produce milk for the  next few years as companies go more towards work from home and other tech which will require more cybersecurity products.

[brattzz]

yes sir, cash cow indeed! dividends are up 6.6cts huat har!!

note, no gov relief COVID19 and still doing well...

[BlueKelah]

yes sir, cash cow indeed! dividends are up 6.6cts huat har!!

note, no gov relief COVID19 and still doing well...

yep just bought another ten lots.

This baby will be privatised soon the way they churning in the $$

[brattzz]

We also have to look at the overall business revenue sir... yr by yr...it's IT division is main bread-winner...


REVENUE
The Group achieved revenue of $253.7m for the six months ended 31 December 2020 (“2H2020”), a
decrease of 1.2% or $3.2m compared to the revenue of $256.9m for the six months ended 31 December
2019 (“2H2019”). For the twelve months ended 31 December 2020 (“12M2020”), the Group achieved revenue
of $479.7m, a year-on-year increase of 5.2% or $23.9m, compared to revenue of $455.8m achieved for the
twelve months ended 31 December 2019 (“12M2019”).
Comparing 2H2020 to 1H2020, revenue increased by 12.3% or $27.7m, from $226.0m in 1H2020 to $253.7m
in 2H2020.

IT Division
The IT Distribution business achieved revenue of $252.6m in 2H2020, a decrease of 1.3% or $3.3m, from
$255.9m in 2H2019. On a twelve months basis, this division grew by 5.3% or $24.1m, from $453.4m in
12M2019 to $477.5m in 12M2020.
Comparing 2H2020 to 1H2020, revenue in IT business increased by 12.3% or $27.7m, from $224.9m in
1H2020 to $252.6m in 2H2020.
The increase in revenue for 12M2020 was mainly due to the increase in customer demands arising from the
increased reliance on digital technologies during COVID-19 pandemic.

PCB Division
Revenue in this Division increased marginally by $84,000, from $1.0m in 2H2019 to $1.1m in 2H2020. On a
twelve months basis, revenue in this division decreased by 8.0% or $193,000, from $2.4m in 12M2019 to
$2.2m in 12M2020. The decrease in revenue was mainly due to lower customer demands and reduction of
manufacturing capacity of the Group resulting from disposal of the remaining 2 laser machines in Singapore
during 12M2020.
Comparing 2H2020 to 1H2020, revenue in this Division remained at $1.1m.

[BlueKelah]

We also have to look at the overall business revenue sir... yr by yr...it's IT division is main bread-winner...


REVENUE
The Group achieved revenue of $253.7m for the six months ended 31 December 2020 (“2H2020”), a
decrease of 1.2% or $3.2m compared to the revenue of $256.9m for the six months ended 31 December
2019 (“2H2019”). For the twelve months ended 31 December 2020 (“12M2020”), the Group achieved revenue
of $479.7m, a year-on-year increase of 5.2% or $23.9m, compared to revenue of $455.8m achieved for the
twelve months ended 31 December 2019 (“12M2019”).
Comparing 2H2020 to 1H2020, revenue increased by 12.3% or $27.7m, from $226.0m in 1H2020 to $253.7m
in 2H2020.

IT Division
The IT Distribution business achieved revenue of $252.6m in 2H2020, a decrease of 1.3% or $3.3m, from
$255.9m in 2H2019. On a twelve months basis, this division grew by 5.3% or $24.1m, from $453.4m in
12M2019 to $477.5m in 12M2020.
Comparing 2H2020 to 1H2020, revenue in IT business increased by 12.3% or $27.7m, from $224.9m in
1H2020 to $252.6m in 2H2020.
The increase in revenue for 12M2020 was mainly due to the increase in customer demands arising from the
increased reliance on digital technologies during COVID-19 pandemic.

PCB Division
Revenue in this Division increased marginally by $84,000, from $1.0m in 2H2019 to $1.1m in 2H2020. On a
twelve months basis, revenue in this division decreased by 8.0% or $193,000, from $2.4m in 12M2019 to
$2.2m in 12M2020. The decrease in revenue was mainly due to lower customer demands and reduction of
manufacturing capacity of the Group resulting from disposal of the remaining 2 laser machines in Singapore
during 12M2020.
Comparing 2H2020 to 1H2020, revenue in this Division remained at $1.1m.

Multichem is just slowly selling the laser machines as they ramp down their original PCB business. This will reduce depreciation and have net cash inflow. They should be selling off their china PCB assets soon and probably at a good price now that Semicon sector is going nuts in china due to EV push.  So revenue of 1.1m now from PCB division is not even worth to look at.

[xierwang]

I unloaded too early   Sold MC to buy distressed stocks during COVID outbreak.

Lol this type is solid cash cow company which will boom when investors discover it or ultimately someone does a GO on it. Well boss has already almost 70% i think with business stable even in COVID as the economy moves to work from home and delivery and more IT based. Sooner or later he will make a GO or arrange for a buyout from a big tech firm from Japan or maybe even China. 

Now we just need the CIMB folks to write an article and push it to $2

This cash cow company delivered another solid 1st half result last Friday, And it declared an interim dividend of 4.2 cents per ordinary share came as a surprise to a lot of us, maybe we don't need the CIMB's report to push it to $2 already