Memtech International Ltd

Memtech International Ltd (M26.SI)

Noticed this stock when it was trading at $0.10 levels. Now shot up to $0.123 high after 2Q report.
Balance sheet is rock solid with possible turnaround this year with 2 successful and profitable quarters, after improving their automotive side business in China. Yes China, but luckily this is a Singaporean company and not S-Chip.

More importantly, who owns this company then?
TOP 20 SHAREHOLDERS (Extracted from AR2013)
No. Name of Shareholder No. of Shares %**
1 Keytech Investment Pte Ltd 308,392,000 43.69
2 HSBC (Singapore) Nominees Pte Ltd 42,713,000 6.05
3 Chuang Tze Dey (Zhuang Zidi) 34,037,000 4.82
4 Chuang Wen Fu 27,714,000 3.93
5 Chuang Tze Mon (Zhuang Zimeng) 19,916,000 2.82
6 UOB Kay Hian Pte Ltd 16,805,000 2.38
7 Citibank Nominees Singapore Pte Ltd 13,877,000 1.97
8 OCBC Securities Private Ltd 13,756,700 1.95
9 DBS Nominees Pte Ltd 13,048,000 1.85
10 Wang Jian 10,165,000 1.44
11 Heng Ngee Boon 7,419,000 1.05
12 Ee Hock Leong Lawrence 7,295,000 1.03
13 Gu Chenghua 7,229,000 1.02
14 Chen Zhengmao 7,133,000 1.01
15 Koh Ser Kiong 5,000,000 0.71
16 Xu Jianxin 3,939,000 0.56
17 Quah Wee Hua 3,110,000 0.44
18 Rin Kei Mei 2,652,000 0.38
19 Cai WeiDong 2,650,000 0.38
20 Ong Poh Seng or Tan Swee Chin 2,640,000 0.37
TOTAL 549,490,700 77.87

After some digging, it seems Keytech Investment Pte Ltd is set up in Singapore and owned by 30+ people including the current Board of Directors with a good portion consisting the Chuang family. So management and ownership not too bad, most of BOD also having ~20+ years of experience in their respective fields with half from PRC and half from Singapore.

Memtech was listed on mainboard in July 2004 which makes it a decade old on SGX and has historically been an ok company which has been friendly to minorities in terms of dishing out dividends from earnings. Dividend yield was 6% when share price was stuck at 10cents past few months.

Fundamental snapshot @ $0.123 price :
NAV $0.22
Net cash 45.41%
Div Yield 4.88%
So far management OK, dividends OK, lots of cash OK, discount to NAV OK.
Dun care much for earnings but more concerned about business sector. For Memtech, looks like expansion into automotive segment was a smart move. China will be needing and producing lots of cars in the future even though short term wise, automotive sector there might be sluggish. So business sector outlook OK.
With five OK’s, let’s see how high or low this one runs :D

[ Update April : Profits taken and left some free shares ]