PETALING JAYA: After declaring a bumper dividend, automotive group MBM Resources Bhd
still offers attractive dividend yields of 5.7% to 7.9% for financial years 2024 (FY24) to FY26, analysts say.
This is backed by a healthy net cash position of RM264mil (67 sen a share) as of the end of September 2024, said CIMB Research.
MBM declared a 29 sen dividend per share (DPS) for the third quarter of financial year 2024 (3Q24), versus 13 sen in 3Q23.
This comprises a seven sen second interim DPS and a 22 sen special DPS. This brings the nine-month 2024 (9M24) DPS to 45 sen.
CIMB Research said it believes there is room for a higher dividend for FY24 given that the group traditionally proposes its final annual dividend every April.
The group’s recently released 9M24 financial results beat most analysts’ expectations.
This was led by higher-than-expected sales volume from its Perodua dealers.
CIMB Research said it expected FY24 to FY26 earnings per share rising by 1% to 5% to reflect the higher sales for Perodua.
The research house maintained its “hold” call with a higher target price of RM6.70 a share.
