Multi-Chem H2 net profit up 28%; company raises dividend

MAINBOARD-LISTED Multi-Chem reported on Friday (Feb 18) a 28 per cent increase in H2 net profit on the back of higher revenue.

Net profit for the 6 months ended Dec 31, 2021 rose to S$13.4 million from S$10.5 million in the prior-year period; revenue rose 20 per cent to S$305.1 million.

The company's activities include the distribution of IT products and provision of value-added printed circuit board (PCB) manufacturing services to PCB fabricators.

For the full-year, revenue was up 26 per cent to S$603.6 million; net profit also improved 40 per cent to S$25 million.

The company noted that revenue in its IT distribution business increased by 26 per cent to S$601.5 million in 2021, mainly due to the increase in customer demand and some big transactions closed during the year.

Earnings per share for the full year stood at S$0.277, better than the S$0.1973 recorded in FY2020. Net asset value per share for the group as of Dec 31, 2021 stood at S$1.4451, an improvement from S$1.2712 a year earlier.

A final dividend of S$0.069 was proposed, which would take total dividend for the year to S$0.111, an improvement from the S$0.066 total dividend in 2020.

In its outlook, the company noted that the Covid-19 pandemic may cause uncertainties in the economic outlook, but added that IT is still a critical requirement in businesses and security would continue to remain an integral part of the IT infrastructure.

"This should augur well for the group's business," it said.

Multi-Chem shares closed at S$1.84 on Friday, up 0.5 per cent, before the earnings announcement.