Based on the 3Q2011 result announcement in section 8 (Performance Review), Q3 2011 vs. Q3 2010 Results,
"The significant increase in exchange loss was caused by the strengthening of US$ against Singapore dollars
(SG$) in 3Q11. This exchange loss was mainly unrealised and resulted from the US$ inter-company advances
from a subsidiary in Hong Kong to the Company.
As a result of the unrealised exchange loss, the Group
recorded a net profit of US$7,000 against a profit of US$3.0 million in Q3 2010. Taking the effect of foreign
currency translation gain recognised in other comprehensive income, the Group’s comprehensive income for
the quarter was US$4.7 million against US$3.6 million or 30.3% higher over the corresponding period in
Section 10 Forward statement
"Inflation and increasing labour costs will pose challenges to the Group's operations in China. Volatility in
foreign exchange, economic uncertainties in Europe and the anaemic economic recovery in the United States
are factors that will affect global economic conditions. Notwithstanding these challenges and uncertainties,
the Group remains cautiously optimistic of its performance for the remaining period in 2011.
The Group's plastic business has achieved a turnaround.
The Group will channel resources and efforts to
improve its touch screen panel business by expanding its production capabilities to include capacitive-type
As the exchange rate of USD against SGD, has improved from 1.203 in September 2011 to 1.3 in Dec 2011. Memtech will be able to write back majority of their "losses" recorded 3.289 mil in 3Q due to unfavorable USD exchange rate against SGD. Furthermore, with the positive forward statement of the turnaround of their plastic business and their strong balance sheet, I'm hopeful that the company will dish out at least 1 cent of dividend.
The following are some of the financial data I'd from 3Q 2011 report:
Cash Per Shares(S$ '000) = $0.0717
Net Cash per shares (SGD) = $0.0551
NAV (S$) = $0.22
Market price = $0.10
Price to Book Value = $0.4457
3Q EPS (accounted for exchange rate losses) = US$0.0066
3Q EPS (recovered USD3.289 mil ) = US$0.011178736
Hence, I'm hopeful that this year result will be better than last year so dividend should be at least 1 cent.