MTQ Corporation Limited

[Musicwhiz]

MTQ has released their FY 2011 results during lunch break.

Revenue +12% to S$91.7M, Gross profit +11% to S$37.5M and GP margin was 40.9%, down from 41.1% in FY 2010.

Net profit was $10.6M, down 12% due to one-off charges (e.g. changes in fair value) and adverse movements. Without these, net profit would have been up 18%.

A final dividend of 2c/share was declared, to choose either cash or scrip.

Will post more as I read through the announcement(s).

[Musicwhiz]

Dear all, Part 1 of my analysis of MTQ's FY 2011 Financials is now up on my blog. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"It would be interesting to find out the interest rate at which MTQ had borrowed the money at, now that interest rates are hovering near all-time lows. It is known from previous announcements that the loan was disbursed by UOB but the tenure of the loan was not stated. The idea of leverage is to borrow money at low interest rates in order to generate ROE and ROA at much higher rates through business expansion, and MTQ has to ensure that the increase in finance costs does not over-shadow the increase in revenues and associated profits from their business expansion into Bahrain."

[Musicwhiz]

Dear all, Part 2 of my analysis of MTQ's FY 2011 Financials is now up on my blog. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"In terms of segment net profit, Management’s ongoing focus in streamlining operations in Engine Systems has yielded positive results, with revenues in this division not only showing a steady increase, but also yielding growth in operating profits and net profit margin. Segment net profit for Engine Systems has hit a 7-year high of $2.7 million and segment margin is now 5.4%, up from 3.2% a year ago. It would appear that the synergistic collaboration with Bosch has enabled margins and revenue to grow, while keeping costs low."

[Musicwhiz]

Dear all, Part 3 of my analysis of MTQ's FY 2011 Financials is now up on my blog. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"From the announcement proper, MTQ mentions that it seeks to participate in Neptune’s business as a significant investor and views Neptune’s capabilities as a “strategic extension of its predominantly workshop based operations in Singapore and Bahrain”. Kuah Boon Wee, CEO of MTQ, will also take a seat on the Board of Directors of Neptune. I will be breaking down this transaction into parts by analyzing and reviewing Neptune as a company, its proposed strategic changes made, and providing a summary of the actions taken to date to signify its commitment towards corporate overhaul and re-structuring."

[Musicwhiz]

Dear all, Part 1 of my write-up on MTQ's AGM held last month is now up on my blog. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"MTQ was, however, affected in the sense that everything got delayed and slowed down a lot due to the riots and trouble. Originally, the first 80% of the construction cum commissioning of the facility went on smoothly without a hitch. The final 20%, however, ran into delays due to the problems surfacing in the Middle East. Though everything has been resolved as of the date of the AGM, the two main delays came from the starting up of power at site (despite submission of applications to the Government, power was only turned on in July 2011), as well as the certifications required from the American Petroleum Institute (API) as many of MTQ’s principals and customers had been driven out of MTQ in the interim due to the violence, and were slow to return to the country."

[Musicwhiz]

Dear all, Part 1 of my MTQ 1H FY 2012 analysis is now up on my blog. Please feel free to visit and leave comments. Thanks!

A snippet as follows:-

"Looking at the numbers, it would appear that PSL’s contribution to the total revenue pie is rather significant, as it constitutes about 15% of the enlarged revenue base. Considering this represents barely two months of revenue (and profit) contribution, it would be interesting to observe what the numbers would be like when PSL is recognized on a full-year basis. Nevertheless, a good indication should be given at MTQ’s next results release for FY 2012 by end-April 2012. An interesting fact which was mentioned during the AGM by Mr. Kuah Boon Wee was that PSL was currently at the bottom of its cycle, as its earnings were bottoming out, and with the upturn in commodity prices and the still-booming oil and gas exploration industry, this will eventually bode well for PSL. The key, of course, is integration of PSL’s operations into MTQ’s such that there are synergies and better opportunities for cross-selling and bundling services/products to customers."

[Musicwhiz]

Dear all, Part 2 of my MTQ 1H FY 2012 analysis is now up on my blog. Please feel free to visit and leave comments. Thanks!

A snippet as follows:-

"The rationale for the acquisition was that PSL offered a complementary range of products and services which would enhance MTQ’s total offering to customers. PSL also had its own set of customers and acquiring the Company would mean that MTQ could broaden and expand its customer base, thus allowing for more opportunities for bundling of products/services and cross-selling. In addition, PSL also has a machining and fabrication business called PEMAC which will add to MTQ’s capabilities and expand the equipment range which MTQ can repair. Moreover, PSL also holds API certificates which will boost MTQ’s Oilfield Engineering capabilities. As mentioned previously in a blog post about the AGM, MTQ managed to acquite PSL because its parent wished to divest it as it was not forming a core part of the previous parent’s operations, which were mainly based in North America."

[stilicon]

results for 1H13 are in : http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_2B2E371BFAF5A4E448257AA7002A5ECF/$file/MTQ_2QFY13_SGX_Financial_Statements_Announcement.pdf?openelement

over the first 6 months :
- revenue : +25% to 78,5MS$,
- op. profit : + 91% to 12,5MS$,
- net profit : +122% to 9,7MS$,
- a 2c interim div. to be paid on 8th january 2013 (same as last year).

NAV was S$0,613 on 31/3/2008. If a NAV value of S$1,0 is assumed (very likely to me at least) at 31/3/2013, it would mean a cagr of about +10% over 5 years. Not bad at all.
Meanwhile, the expected dividend (between 4,5c and 5c this year ?) is now comparable to most REITs (at least for those like me who have a 17% tax on the REITs div ...) ie between 5% and 5,5%.

Is it too early to switch from the REITs, which over-performed during the last 3 years, to the forgotten industrials ?
Can compression of rates go further ? Is P/B for some industrial REITs at 1,30/1,35 reasonable ? What happens to a REIT which gross rentability is between 4,5% and 5% when interest rate on its debt starts creeping up even slightly from a good 3%/3,5% at present ? I just wonder...

(vested, but lightly)

[behappyalways]

mtq-1q-losses-widen-3-mil-lower-subsea-activities-neptune
https://www.theedgesingapore.com/mtq-1q ... es-neptune

[behappyalways]

MTQ reverses out of the red with 1Q earnings of $0.8 mil
https://www.theedgesingapore.com/capita ... ngs-08-mil