Lim Ah Cheng, CEO of Dyna-Mac Holdings, has raised his stakeholding in the company after it won a spate of new orders. On May 13, Lim acquired 168,000 Dyna-Mac shares on the open market for $23,856 or 14.2 cents each.
With the purchase, Lim now holds just over 1.98 million shares or 0.193% of the company, up from 0.177% previously.
Dyna-Mac’s single largest shareholder, with a 40.7% stake, is the estate of the late Desmond Lim Tze Jong, who founded the company in 1990. The company’s second-largest shareholder, with a 24.35% stake, is an entity called KS Investments, which is an indirect subsidiary of Keppel Corp.
Keppel first took a stake in Dyna-Mac back in 2011 by buying 250 million shares at 35 cents each or $87.5 million in a placement.
Lim was appointed CEO on March 1, 2020. Before Dyna-Mac, Lim, a Keppel Scholarship recipient, had held various positions within the conglomerate. His last appointment was executive director of Keppel Sea Scan and Green Scan.
Dyna-Mac focuses on building the topside modules of floating rigs built by the likes of Keppel. In its 1QFY2022 ended March business update announced on May 12, revenue for the quarter stood at $67.5 million, 64.3% higher y-o-y as more revenue was progressively recognised by its various ongoing orders.
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However, unlike the quarter a year earlier, the company did not enjoy government grants and other one-off items including the sale of a property. As such, earnings for 1QFY2022 came in at $1.87 million, 16.6% lower compared to the $2.24 million booked in 1QFY2021.
As at March 31, Dyna-Mac’s cash holdings improved to $114 million versus $106.3 million as at Dec 31, 2021. It claims to have paid vendors and subcontractors on time and that it has zero borrowings.
In a sign of Dyna-Mac’s upbeat prospects, the company says it has won a steady stream of new orders, including two announced on May 5 and April 25 worth a total of $270.3 million. “We are honoured that our longtime repeat customer has chosen to partner us for the construction of the FPSO Topside Modules,” says Lim in the company’s May 4 announcement on the order win.
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“This is a testimony of our ability to execute and deliver our projects on time, on budget and in stringent compliance with safety, security, health and environment standards,” he adds.
With the latest contract wins, Dyna-Mac’s total net order book is at $582.7 million, which would be delivered through FY2024. “The group continues to receive very strong enquiries that may potentially add to our order book,” the company adds.
Software distributor and PCB maker
Foo Suan Sai, CEO and a co-founder of Multi-Chem, has also increased his stake in the company. On May 12, Foo acquired 30,000 shares on the open market for $56,400 or $1.88 each. This brings his direct stake to some 36.9 million shares or 40.91% from 40.877% previously.
In addition, Foo is also deemed interested in another 25.5 million shares or 28.131% held directly by his wife Han Juat Hoon. She is another of the company’s founders and its chief operating officer. This gives Foo and Han a total interest of some 62.2 million shares or 69.041%.
Besides Foo, another Multi-Chem insider bought shares too. He is Foo Fang Yong, the company’s executive director and general manager. On March 23, Fang Yong acquired 66,400 shares on the open market for $123,091 or $1.85 each. Just a day earlier, he had acquired 18,000 shares for $33,660 or $1.87 each. This brings Fang Yong’s total stake in the company to 162,400 shares or 0.18%, up from 0.107% previously.
Multi-Chem manufactures printed circuit boards as well as distributes software via subsidiary M Tech Group. Brands handled include Check Point, CyberArk, Imperva, Trellix (formerly McAfee), Proofpoint, Riverbed, RSA, Solarwinds, Symantec and Trend Micro.
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In FY2021 ended December 2021, the company reported earnings of $25 million, up 40% over $17.8 million recorded a year earlier. Revenue in the same period was up 12% y-o-y to $603.6 million, which was led by certain “big transactions” that closed in 2HFY2021.
The company also paid a final dividend of 6.9 cents, which brought the full-year payout to 11.1 cents. For the whole of FY2020, a total dividend of 6.6 cents was paid out.
