RM 7.80 ~ RM 8.00 otw ... not many good counters to trade and invest already. This is a good one that everybody jumped in. Dividend day also very soon and can't resist to lose the opportunity.
SAM is a Singapore company in an indirect way. Singaporean must be very confident of their own company. Some more, it is controlled by Temasek. No hanky panky.
PETALING JAYA: SAM Engineering & Equipment (M) Bhd’s largest shareholder, Temasek Holdings (Pte) Ltd, has converted the bulk of its loan stocks in the company, which raises the prospect of a decline in the dividend per share of SAM Engineering.
Temasek converted 83.03 million irredeemable convertible unsecured loan stocks (Iculs) into 39.54 million new shares in SAM Engineering yesterday.
The loan stocks were converted at a rate of RM2.10 per Icul.
The exercise will expand SAM Engineering’s total share base to 125.86 million from 86.32 million shares previously.
Temasek has 18.22 million loan stocks yet to be converted.
SAM Engineering’s dividend per share for the financial year ended March 31, 2015 (FY15) was 32.2 sen per share.
While this dividend per share figure is expected to be reduced due to the larger share base, the improved earnings of SAM Engineering instead raises the possibility of a higher dividend payout.
SAM Engineering paid out RM27.78mil in dividends for FY15 and this works out to a payout ratio of 80% of profits for that financial year.
Using the same dividend payout ratio, it is estimated that SAM Engineering may pay RM50.48mil in dividends for FY16.
This could result in a dividend per share of 40 sen for FY16, taking into account the current total share base of 125.86 million shares.
It should be noted too, that following the conversion of the Iculs by Temasek, SAM Engineering stands to save some money from the interest that it was paying to its Iculs holders.
The Iculs carried a 4% interest and SAM Engineering had paid out a total of RM4.12mil in FY16 in these interest payments, the annual report showed. It is also not surprising that Temasek had sought to convert its Iculs, as it is likely going to enjoy a higher yield from owning shares in SAM Engineering, compared to the 4% rate from the Iculs. The 40-sen dividend payout, if it materialises, would bring Temasek a much higher yield, considering it had bought into SAM Engineering in 2012 at a lower price from what the stock is trading at now.
SAM Engineering reported an improved net profit of RM63.09mil for its FY16, which was a 28.5% increase from the previous year.
Temasek through its unit, Singapore Aerospace Manufacturing Pte Ltd, had earlier disposed of 9.1 million shares in SAM Engineering to a group of purchasers.
The disposal brought down Temasek’s interest in SAM Engineering to 54.46% or 48.74 million shares.
Now that Temasek has converted the bulk of its loan stocks, its current interest in SAM Engineering has increased to 70.12% or 88.28 million shares.
Thus, Temasek still fulfils the public shareholding spread, as its shareholding in SAM Engineering is still below 75%.
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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....
Alex Lim Jun Xiong
6,929 posts
Posted by Alex Lim Jun Xiong > 2016-06-24 14:51 | Report Abuse
Sold? Later 5pm close RM7.70 u regret~