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MTQ Corporation
18-09-2010, 08:44 PM, (This post was last modified: 23-10-2013, 03:16 PM by CityFarmer.)
Post: #1
MTQ Corporation
First post here on MTQ...... Smile

It was revealed that Kuah KK bought yet another 20,000 shares on Sep 14, 2010 at S$0.926, which so far has been the highest price he has paid for shares in MTQ! This raises his stake further to 22,860,000 shares or 25.96% of the Company.

Comments about the company and its prospects, financials, fundamentals and plans are most welcome. Big Grin

http://sgmusicwhiz.blogspot.com
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25-09-2010, 01:05 PM,
Post: #2
RE: MTQ Corporation Limited
MTQ has just appointed a new ID in Mr Nicholas Campbell Cocks (Nick Cocks).....
http://info.sgx.com/webcoranncatth.nsf/V...penelement

Nick Cocks in Group MD and 2nd-generation joint-owner of Readymix Holdings International Pte Ltd (http://www.readymix.com.sg/), which owns established concrete operations in Brunei and Vietnam, supplying to the domestic construction industries there.

MTQ's latest FY10 (ended 31Mar10) AR makes interesting reading.....
http://info.sgx.com/listprosp.nsf/07aed3..._09_10.pdf

Based on MTQ's FY10 EPS of $0.1367, and NAV/share of $0.774 as at 31Mar10, and a good prospect of further business and earnings growth in the 2 core businesses, the current share price at $0.92 does not appear at all demanding. I suppose that's why KK Kuah - a smart and experienced businessman who also knows how to invest - has been buying more MTQ shares.

Having received on 17Aug10 the $0.02/share Final dividend for FY10, I now look forward to the coming 1H (ending 30Sep10)-FY11 results expected by end-Oct, and the usual Interim dividend (last FY10: $0.01/share, paid 24Nov09).....

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25-09-2010, 01:10 PM,
Post: #3
RE: MTQ Corporation Limited
Welcome back dydx! Big Grin

I've missed a lot of your astute analysis on SGX Listed companies....

Glad to be able to see you continue to share, and to continue to learn from you too.

Have a great weekend!

P.S. - Thanks for digging up more info on MTQ's ID.....I was pretty busy these few days so did not do a check on him. Smile
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/

http://sgmusicwhiz.blogspot.com
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19-10-2010, 09:30 AM,
Post: #4
RE: MTQ Corporation Limited
MTQ's 1H FY 2011 results will be released at lunch time on November 3, 2010 (Wednesday). This has been confirmed by the IR personnel whom I emailed. Big Grin
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/

http://sgmusicwhiz.blogspot.com
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03-11-2010, 09:10 PM,
Post: #5
RE: MTQ Corporation Limited
The Q2/H1 (ended 30Sep10)-FY11 results announcement just released today makes interesting reading.....
http://info.sgx.com/webcoranncatth.nsf/V...penelement

Some key points to note -

1. Business volume of the 2 core divisions - Oilfield Engineering Div. and Engine Systems Div. - continue to grow steadily.

2. The underlying profits for the 2 core divisions and for the group - measured by Group PBT, after adjusting for a $1.863m gain on disposal of financial assets and a higher $149k Job Credit government subsidy in H1-FY10 - are also increasing steadily.

3. Management has given a positive outlook statement for H2-FY11 (ending 31Mar11), and indicated that the new plant in Bahrain for the Oilfield Engineering Div. is expected to commence operation in 2011 - just a few months away!

4. The latest B/S as at 30Sep10 shows MTQ has $8.194m in investment securities and a cash reserve of $20.63m. After netting off $5.957m in total borrowings, this gives a nett cash reserve (inclusive the investment securities) of $22.867m - equivalent to $0.26/share, based on the 88.059m issued shares (excluding 7.482m teasury shares) as at 30Sep10.

5. Excluding the $0.26/share nett cash reserve from today's closing share price of $0.92, and assuming MTQ would attain an EPS of $0.125 (based on H1's $0.0611) for FY11, Mr Market is now pricing MTQ's high-quality and growing operating businesses at a PER of only 5.28x on current earnings. This can't be quite right! Would it be more right to say that MTQ should be worth at least a minimum 50% premium over its NAV of $0.8712/share??

I am so happy to see the higher $0.02/share (vs. the $0.01/share in last FY) Interim dividend!

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04-11-2010, 07:15 AM,
Post: #6
RE: MTQ Corporation Limited
I am very pleasantly surprised by the doubling of interim dividend! Big Grin

Business Times - 04 Nov 2010

MTQ's H1 profit drops 25%


The decline was due to gains on the disposal of assets in year-ago period

By JOYCE HOOI

OIL-FIELD equipment engineering company MTQ Corporation has doubled its interim dividend from one to two cents a share, after reporting a 25 per cent slide in first-half 2011 net profit to $5.4 million, down from $7.2 million.

The decline in the bottom line was largely because of gains on the disposal of assets in the year-ago period.

Excluding a $1.9 million one-off disposal gain in H1 last year, profit before tax for the latest H1 rose 4.3 per cent.

Revenue grew 12 per cent to $44.6 million on stronger demand in the original equipment manufacturer repair segment, new business from acquisitions and an improvement in the rental business.

MTQ's oilfield engineering division - which repairs and maintains the blowout preventers on rigs, among other things - saw H1 revenue rise $1.3 million or 6.5 per cent.

Its engine systems division lifted revenue 13.2 per cent, boosted by contributions from Bosch Superstore operations in Australia.

MTQ's chief executive Kuah Boon Wee said that the post-oil spill scenario in the Gulf of Mexico bodes well for the company.

'All the oil majors are going to be a lot more focused on the level of maintenance for their rigs,' he said. 'There will be a higher threshold for compliance among rig owners and rig operators,' he said.

According to Mr Kuah, MTQ's new plant in Bahrain is expected to be completed on time and within budget, with operations to start in 2011.

'Construction is quite advanced and the machinery is arriving,' he said. 'It won't have much of a profit and loss impact until next year. We are confident that our facility will be better than anybody else's.'

MTQ's earnings per share for the six months ended Sept 30 stood at 6.11 cents, down from 8.16 cents a year earlier.

Directors have recommended an interim dividend of two cents a share, which shareholders can opt to receive in shares or in cash. 'It reflects our sentiment that our outlook is fine,' Mr Kuah said.

Mr Kuah resigned as PSA International's chief executive for the Middle East and South Asia earlier this year to take the helm at MTQ, as part of the group's succession planning.

'It's very different. As I'd joked, this is the smallest company that I've ever worked in in my life, but I enjoy it,' he said. 'I enjoy the different challenge and having an owner's perspective.

'When you have a smaller group, that's probably the biggest challenge. You need to work with resources you have. And if you don't have them, you have to add them carefully.'

Mr Kuah's father Kuah Kok Kim retains some executive functions and remains in an advisory role as MTQ's executive chairman.

The group's counter closed unchanged at 92 cents yesterday.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/

http://sgmusicwhiz.blogspot.com
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05-11-2010, 10:16 PM,
Post: #7
RE: MTQ Corporation Limited
A recent article on MTQ 1H Results by Nextinsight Smile

http://www.nextinsight.net/index.php/sto...end-up-100
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.

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05-11-2010, 11:40 PM,
Post: #8
RE: MTQ Corporation Limited
hi the 2cent interim dividend is either cash/scrip.
may i ask is it sensible for a retail investor to choose scrip (which should be issued at near current price) over cash if he bought at a much lower price? by not choosing scrip i wonder how bad is the dilution impact

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06-11-2010, 12:26 PM, (This post was last modified: 06-11-2010, 04:18 PM by dydx.)
Post: #9
RE: MTQ Corporation Limited
A scrip dividend option allows existing MTQ shareholders to re-invest the declared coming $0.02/share Interim dividend into more new MTQ shares at the prevailing share price (last done price: $0.925), thereby also indirectly allowing them to raise their proportionate stakes against those who opt to take their dividends in cash. To most of the small or minority shareholders, it doesn't really make much of a difference, as by taking the scrip option, the $0.02/share dividend amount will allow them to buy 2.16% more MTQ shares on their existing small stakes and, at the same time, at least keep their small proportionate stakes intact. To the controlling shareholders like the Kuah Family, taking the scrip option will allow them to strategically raise their proportionate stakes in MTQ - against those minority shareholders who opt to take their dividends in cash - in an effective and likely also cheaper way, as compared to them buying more shares in the open-market, likely at a higher average share price.

From a rational viewpoint, as long as the prevailing share price is significantly below its corresponding fair or intrinsic value, it is advantageous for shareholders to take their dividends in scrip, especially if the underlying business is poised to grow further, and if it is difficult to buy more shares except by paying higher prices.

I bet the Kuah Family will opt to take their dividends in scrip, unless of course if they are in need of the money for other purposes.

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06-11-2010, 01:56 PM, (This post was last modified: 06-11-2010, 01:57 PM by pianist.)
Post: #10
RE: MTQ Corporation Limited
Thanks dydx for the reply which makes sense & helps provide clarity to my query.
i tried just out of curiosity to find out more about that Scrip Dividend Scheme (approved at the Extraordinary General Meeting held on 2 July 2004) mentioned but was not successful.
Anyway, I am also encouraged by the fact that the ceo and chairman Mr Kuah Kok kim last bought 20,000 shares on Sep 14, 2010 at S$0.926, higher than the last done price.






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