Multi-Chem

[cyclone]

Multi-Chem has been engaged as a value added supplier to PCB manufacturers for close to three decades. and has emerged as one of the leading drilling and routing service providers in terms of capacity and technology in South East Asia and
Eastern China. In addition to being a service provider to PCB manufacturers, the Company is also in the complementary business of distribution of PCB specialty chemicals and related materials.

The Group also ventures to the IT arena through the M.Tech Group, has been engaged in the distribution of IT products since 2002. The M.Tech group is a leading regional IT products distributor, carrying best-of-breed products from industry leading vendors and with a presence in 27 cities in 13 countries. Among the products the Group currently carries are industry-leading IT products from Check Point, Blue Coat, Citrix, Riverbed, RSA, Imperva, Tufin and HP TippingPoint.

The Group also provide certified IT training which is authorised to conduct training for Blue Coat, Check Point, EC-Council, HP TippingPoint, ISC2, Riverbed and RSA courses.

For 1H2012, the IT distribution business accounted for 88.2% of Group revenue, while the manufacturing service and PCB-related distribution business only accounted for the remaining 11.8% of Group revenue.

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The proposed interim dividend for 1H2012 of 0.55 cent per ordinary share will be ex-dividend on 4 Sept 2012.

Vested.

[zf87]

glad to know one of our Administrators is invested.

I have been invested in it for years, but only recently the dividend yield is very high.

very illiquid one, always expecting 1 lot sell/buy to/from u.

[pianist]

the IT products doesnt ring a bell

[AlphaQuant]

this counter definitely went thru some rough times in 2007-2009.
good thing is that the management definitely did some serious work to get stuff back on the right track - reduced debts, promptly wrote off bad debts, depreciations etc - so a chunk of dirty laundry is swept clean i guess.

past 2 years hiking up the dividend so the yield off these prices are ok - price is ok relative to book value.

the problem though, is a struggle agst the falling profit margins, although sales/cashflows/turnover is chucking along reasonably well.

can;t see where the next catalyst is coming from - so to me just a yield thing if i can get it below 9cents.

[Drizzt]

hi cyclone, just notice this company and i thought it was a chemical compony. man how wrong was I. It looks like its got a rather wide spanning distributor channels for specialized security products.

the concern is 2007 to 2009 which was rather bad. have not look into their year to year reports but wonder whether they could revisit that situation again.

[cyclone]

hi cyclone, just notice this company and i thought it was a chemical compony. man how wrong was I. It looks like its got a rather wide spanning distributor channels for specialized security products.

the concern is 2007 to 2009 which was rather bad. have not look into their year to year reports but wonder whether they could revisit that situation again.

The name, Multi-Chem, does not really reflects it's businessses. For 2012, it derived it's revenue from IT distribution (85%) and the rest from PCB routing and drilling (15%).

I think the probability to revisit 2007 to 2009 situation is high. For a 9% drop in revenue QOQ, in Q1-2013, it has already sunk it into the red.

I had divested and it was well absorbed by Mdm Han.
<not vested>

[Drizzt]

oh i see you mean recently it is in the red? i thought an IT distributor business would have been great for it.

[cyclone]

oh i see you mean recently it is in the red? i thought an IT distributor business would have been great for it.

For 3 months ended 2013/03/31, it recorded revenue about 54 millions sgd, a drop of 9% from 3 months ended 2012/03/31. (Loss)/Profit from the correspondent periods are about (1.1 million) versus 2.4 million.

I also thought that it's security IT distributor bussiness would be great for it. Combined with a strong balance sheet, it attracted me to take a part.

[Drizzt]

hi cyclone being in the industry and have dealt with MTech and make use of their service, knowing that they did maintenance and training seems like a good deal. if the business is so good. they shouldnt be facing this.

perhaps they are just earning the most from distrbuting and the after sales recurring service is just a small portion.

checkpoint, RSA are widely used stuff.

[valuebuddies]

Q2 results announced: http://infopub.sgx.com/FileOpen/MCL_1H20...eID=307791

- not much changes from Q1 and last year same period, business remain weak and can easily swing into loss when costs overrun
- Dividend kena chopped from 0.55c to 0.27c, meaning a 5.19% yield on last price versus 6.96% previous years
- EPS 0.05c or annualised 0.2c, far below dividend payout of 0.82c

[ not vested ]