CIMB: ANALYSTS expect further generous dividend payments from CIMB, going forward. They said CIMB is in a good position to do so. Its current capital adequacy ratio of 20% was well above the industry average of 13% and the statutory requirement of 8%. CIMB's rationale for the recent special dividend – a gross dividend of 21.29 sen per share amounting to a total payout of RM181mil - was to return part of the group's excess capital and improve return on equity. Based on the special dividend itself - ex-date May 7 - CIMB’s net dividend yield of 7% was the highest among banking stocks.
SP Setia: ANALYSTS may have lowered their earnings expectation for SP Setia this year but maintained the company as their top pick in the property sector. Their concern was centred on the slow progress involving the sale of land parcels at Bandar Setia Alam and Pasir Gudang Highway, for which it has yet to receive the final approval. GK Goh said there was an upside to its earnings forecast, as it had not factored in the land sales or potential new contracts. SP Setia had said it was looking at another major construction project after the Pasir Gudang job was finalised.
Genting: LAST week’s rebound came after weeks of selling that sent Genting's share price down to a year low of RM11.60 on April 10. Meanwhile, analysts are expecting price volatility to continue in the immediate term, as sentiment on this stock remained cautious. According to Multex's latest consensus estimate, Genting's earnings per share (EPS) for 2003 has been revised downward to 112.6 sen. While the SARS scare would have an impact on Genting's earnings, its balance sheet looked solid and contribution from plantations and power generation would likely be affected.
Boustead: BOUSTEAD caught investors’ attention last month after swinging back to profitability, posting a pre-tax profit of RM155mil for the year ended Dec 31, 2002. The group had then announced plans to take plantation unit Kuala Sidim Bhd private. Boustead's turnaround and restructuring plans may have impressed investors, judging from the stock’s commendable performance. Long-term shareholders can always count on Boustead for steady dividend income. It recently declared a final dividend of 10 sen less tax and the stock will be traded ex-dividend on May 12.
Kimble: THE introduction of smaller board lot sizes for second board stocks has benefited Kimble Corp as retail investors sought quality holdings at cheaper entry cost. A niche player in the bedroom set market segment, Kimble’s revenue is expected to grow at an average rate of 12% over the next two years. Based on OSK Research's forecast EPS of 32 sen for financial year 2003, Kimble looks like a good bargain at current PER of 6.4 times. Meanwhile, OSK said Kimble's bedroom set production capacity was expected to increase 30% by the end of 2003 from the current 100,000 units per annum.