Prior to the year of assessment 2008, Malaysian companies adopted the full imputation system. In accordance with the Finance Act 2007 which was gazetted on 28 December 2007, companies shall not be entitled to deduct tax on dividend paid, credited or distributed to its shareholders, and such dividends will be exempted from tax in the hands of the shareholders ("single tier system"). However, there is a transitional period of 6 years, expiring on 31 December 2013, to allow companies to pay franked dividends to their shareholders under limited circumstances. Companies also have an irrevocable option to disregard the 108 balance and opt to pay dividends under the single tier system. The change in the tax legislation also provides for the 108 balance to be locked in as at 31 December 2007 in accordance with Section 39 of the Finance Act 2007. The Company did not elect for the irrevocable option to disregard the 108 balance. Accordingly, during the transitional period, the Company may utilise the credit in the 108 balance as at 31 December 2012 and 2011 to distribute cash dividend payments to ordinary shareholdings as defined under the Finance Act 2007. As at 31 December 2012, the Company has sufficient tax exempt balances and 108 balance of the Income Tax Act, 1967 to pay franked dividends amounting to RM330,277,000 (2011 : RM357,293,000) out of its retained earnings. If the balance of the retained earnings of RM616,475,000 (2011 : RM547,693,000) were to be distributed as dividends, the Company may distribute such dividends under the single tier system.
Many people know that Keck Seng is a cash and asset rich company. It has over RM 800 million in cash and its share investments in listed companies are worth over RM 500 million. Its flagship building, the Menara Keck Seng has a book value of only RM 55 million. You can't get this building for less than RM 150 million even in a fire sale. Its other building, a high end condominium block at Bukit Ceylon, KL has a book value of RM 53 million or RM 244 per sq ft. Over 8,000 acres of its plantation land near to the Pasir Gudang Industrial Estate have a book value of between RM 4,200 to RM 7,400 per acre. Even land in rural areas can fetch over RM 100,000 per acre now. But what can you do? Can you point a gun at the Directors and forced them to re-value its assets or take out a few hundred million to pay as dividend? So just wait lah.
only in paper , practically it is not advisable to implement it ( pay out dividend in one lump sum under single tier system) given the reluctance expressed by the MD n management . They prefer to drawing out year by year when time to fix their own remunerations after passing of each AGM . This is perfectly right since they are controlling the co unless and until they were forced to do so by hostile take over or merger. whatever assets owned cannot be translated into cash or in share prices given the mental blocks existed right in front of our eyes. Sorry if i may be wrong. Good luck to all the hopefuls.
Total 40%above hold by Ho's famialy members. They wont let 345m be going burn out. Year end is magic show for kseng. Let every shareholder has year end cny bonus
The Ho family members are all Singaporeans. Singapore'a tax rate is much lower than Malaysia. I wonder how Singaporeans can claim back their tax refund should Keck Seng decide to pay a special dividend. Here if you are retired and have no income, you can claim back the 25% tax which has been deducted in full, unless of course you dividend income amounts to tens of thousands.
You seem to be very optimistic of a special dividend payment but the company is under no obligation to do this. Of course if the company fails to declare a special dividend, its directors would be bombarded during the AGM next year.After disposing of Parkway Holdings shares more than 3 years ago, they should have re-invested the money instead of keeping it in Singapore banks and earning just 1% interest a year. If they had bought land in JB, the total return could have been 50% over the 3 year period.
They were savvy when they made investments in Parkway Holdings, PPB Group and Chin Teck. When it comes to disposing of shares, they are not savvy at all. I bet they could be still holding Parkway Holdings shares if Khazanah had not made a GO.
buying rate >78% albeit a slower rate . overall is positive but look like it is being manipulated to control the up rather than the down by looking at the volume on buy and sell? not very positive on the tax refund and big dividend pay out which is due in 30 august each year where normally it declares a 4 cents dividend .
During the 2006/07 bull-run, Keck Seng’s investments in listed company shares peaked at over RM 750 million. It disposed of less than 3% of its shareholdings (net). In the ensuing world financial crisis of 2008/09, the value of Keck Seng’s share holdings dropped by over 50% at its nadir. Buy Keck Seng only if you are able to hold for some time. Looks like there might be some speculative play on Keck Seng shares leading to the announcement of the interim dividend, hopefully the special dividend as well before the end of the month.
Investors are hoping for a special franked dividend of RM 960 per 1000 shares. Keck Seng shares won't go up if investors are expecting a RM 40 dividend.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
eht6769
711 posts
Posted by eht6769 > 2013-07-19 12:17 | Report Abuse
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