RHB Group Research’s Jarick Seet has called Multi-Chem Limited "a little known cash tech gem" in Singapore’s technology space. 

In an unrated note on Dec 1, he highlighted as at 1H2020, Multi-Chem’s net cash stood at $71.1 million, or 62% of its current market cap. Management owns about 80% of the company and has shown a great track record in rewarding shareholders with dividends. 

Furthermore, the company enjoyed stable earnings from FY2015-2019, and “is likely poised for further strong growth in FY20F.” 1H20 profit after tax and minority interests (PATMI) surged 84% to $7.3 million, and if prorated, represents only 7.8x FY2020F price to earnings (P/E) and a lower 3.9x ex-cash P/E.


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