SHARES in property developer Oriental Interest Bhd (OIB) rose 11 sen, or 8.7% higher, to RM1.38 yesterday on record profits and bumper dividend payout.
The company announced late Tuesday that its net profit had more than doubled during the fiscal year ended June 30 to RM29.4mil, or 32.51 sen per share, compared with RM14.8mil, or 16.39 sen per share, last year.
The higher net income came in on the back of a 36% increase in revenue to RM134.5mil from RM104mil previously.
In line with its improved performance, OIB declared a higher dividend of 10 sen per share less tax for the year just ended, which was 150% higher than the gross dividend of four sen last year.
At yesterday's close, the stock was valued at just four times its previous year's earnings, while its gross dividend yield stood at 7.2%.
Despite the increased dividend payouts, the company's balance sheet remains strong with no debts and a cash hoard of RM21.5mil as at end of June.
OIB's net tangible asset grew to RM2.77 per share as at June 30 from RM2.57 a year earlier.
Despite its solid fundamentals, OIB attracts little interest from investors given its lack of liquidity. Only 82,100 shares were traded yesterday, which was its busiest day in over a month.
Based on its 2004 annual report, the company's land bank totalled some 750 acres, located mostly in Sungai Petani and Kulim, Kedah.
About a third of its land is located in Seremban, Negri Sembilan and Sepang, Selangor.
The main board company with a market capitalisation of RM125mil was listed 11 years ago.