I hope its not a outright sale of Binder. Binder management must remain intact. I took a careful look at the product and service, it is a highly engineered support for special application. It is not a mandated engineering practice according to code to use such product but given the importance of maintenance over the life span of infrastructure more and more engineering practice requires pipe fatigue analysis and occasionally the problem of vibration/heat load stress necessitate the use engineered support.
Most engineer would prefer to have the contractor manufacture these directly or alternatively they may ask a independent supplier like Binder to provide the recommended support in the design phase and this will certainly add greater value to Binder services/product.
The draw back is of course the heavy overhead required to maintain a team of engineer to work with the designer. The oil business has plenty vested interest to keep to the same supplier/designer - ie pre-qualification is key. Otherwise can be a up hill task trying to convince oil Co.
MTQ should have tried to vertically integrate its operation into Subsea activities. Previously senior Kwak bought the ROV unit but had to give it up as it was bleeding.
I hope they dont loss focus on the core business. The CEO should explain more why Binder? It is not a specialist in the pipe business, just the support only - how much sales can it possibly grow?
Since announcing the Binder acquisition on 14Jan14 (last Tuesday) evening, MTQ's share price has advanced steadily in the last 4 sessions and added another $0.03 this morning (21Jan14) with last done at a new historical high of $1.57.
It is even more heartening to note that MTQ's share price has been on quite a pronounced steady up-trend since Jan2013, and the up-trend actually started around end-Jun2012. In fact, against the STI as the measurement of the SGX market's average, share-price wise MTQ has out-performed the market index since Jan2012 - i.e. for the last 2 years - by a whopping 160%!…..
http://finance.yahoo.com/q/bc?s=M05.SI&t...l&c=%5Esti
Quite clearly, MTQ as a quality company and business - and as a quality stock - has passed the fundamental test of time!
This morning, MTQ's share price last done at $1.785 - another new high!…..
http://sg.finance.yahoo.com/q/bc?s=M05.S...l&c=%5ESTI
It has out-performed the STI by over 40% in the past year, and by some 20% alone since the release of its Q3 results on 10Feb14.
Mr Market sure knows how and when to reward shareholders and investors of a high-quality and growing business!
Mtq seriously creeping up over the last few sessions
Sent from my S4 via Tapatalk
Super results!
http://infopub.sgx.com/FileOpen/MTQ_4QFY...eID=295391
"Rewarding Shareholders
The Board of Directors has proposed a final cash/scrip dividend of 2 Singapore cents per share. In addition, the Group will propose a bonus issue of one new ordinary share for every five ordinary shares held in the capital of MTQ which will be subjected to the approval of the Singapore Exchange Securities Trading Limited (“SGX-ST”) for the listing and quotation of the bonus shares on the official list of the SGX-ST. Barring any unforeseen circumstances, the Group expects that the bonus shares will be entitled to the proposed final cash/scrip dividend in respect of the financial year ended 31 March 2014, which will represent a dividend payout ratio of 22.9% and an effective 50% increase in dividends paid over that of 2 years ago. Details of the proposed bonus issue will be provided in a separate announcement."
While Mr Market does not seem quite so enthusiastic, i thought MTQ has presented a rather decent set of results, with an improved b/s and relatively unchanged but reasonable margins.
What is more important and encouraging to fellow shareowners is the outlook provided and the aim to achieve profitability for the Bahrain operations in FY2015. With the current management at the helm, i believe Bahrain could likely contribute nicely to top and bottom lines in the not so distant future.
In the meantime, very much looking forward to the proposed dividends.
There is every reason to believe that MTQ under the present management headed by the father-and-son team of Senior and Junior Kuahs will continue to grow the group's business base including through accretive and opportunistic acquisitions. In the near term, earnings growth will likely come from (1) a further increase in business volume at the Bahrain service centre (part of the well-established Oilfield Engineering Div.) which should also get into a profitable state soon, (2) consolidation of the new units acquired in FY13/14 into the group to drive incremental revenue and profits through cross-selling and measure to improve efficiency, and (3) acquisition of new customers through on-going marketing effort.
I look forward for the coming $0.02/share Final dividend, which will also be paid on the new extra shares to be issued under the proposed 1-for-5 bonus issue - in effect, this amounts to a 20% YoY increase in dividend payout.