MTQ released their FY 2010 results on April 30, 2010 during lunch time, one of the earlier companies in my portfolio to release their full-year results (MTQ has a March 31 year-end, similar to Tat Hong and Boustead which will release closer to end-May 2010). Suffice to say the results looked surprisingly good considering their main Oilfield Engineering Division had taken a hit (this was already apparent in 1H FY 2010’s results) and that their Engine Systems had previously been highlighted by me as having very low operating margins. Even with the recent partnership with Bosch to create MTQ’s Bosch Superstores (managed by MTQES in Australia) and the purchase of Premier, I did not have high expectations for the Engine Systems division to pull off a good performance. I was pleasantly surprised on this count, as we shall see in the segment analysis for both divisions. In the meantime, this analysis will follow the usual pattern of financial statement analysis and commentary, followed by business division review (including margins) and lastly discussing prospects, plans, risks and potential hurdles for the Company.
Profit and Loss Analysis
As can be seen in the above table, I had plotted out the 1H FY 2010 numbers which were released by MTQ in November 2009, and alongside it I had added in the 2H FY 2010 numbers, which were derived from subtraction of the FY 2010 from the 1H FY 2010 numbers (MTQ conveniently left out 2H performance, so I had to do my own back calculations). Read more...
A sensible assessment, are you an investment professional and do you use IT portfolio management software to help you evaluate stocks in your portfolio?