We?re in the midst of Earnings Season, with different companies reporting their latest quarterly results almost daily. There?ll be some companies that might make for grumpy investors by releasing poor earnings, but there?ll be also be companies who are making shareholders happier by offering better dividends.
Let?s take a closer look at some of those companies that have declared in the past two weeks that it will be busy writing bigger pay checks to its investors.
Boustead Singapore (SGX: F9D)
Shareholders of Boustead Singapore were treated to a hat-trick of increases in…
We’re in the midst of Earnings Season, with different companies reporting their latest quarterly results almost daily. There’ll be some companies that might make for grumpy investors by releasing poor earnings, but there’ll be also be companies who are making shareholders happier by offering better dividends.
Let’s take a closer look at some of those companies that have declared in the past two weeks that it will be busy writing bigger pay checks to its investors.
Boustead Singapore (SGX: F9D)
Shareholders of Boustead Singapore were treated to a hat-trick of increases in revenue, earnings and dividends in its latest full year results that was released on last Tuesday. The company had even delivered record earnings of S$81.4m.
Unfortunately, the infrastructure engineering and geospatial imaging-technology company’s share price did not cooperate, and instead, sank by almost 8% from S$1.52 on last Tuesday to S$1.405 currently.
The company’s desire to reward shareholders with a bigger dividend, however, might help ease some of that sting. Boustead has proposed a pay out of S$0.03 and S$0.02 in Final and Special dividends respectively. This will bring the full year’s dividend to S$0.07 per share, a bump up of 40% from the prior year’s dividend of $0.05.
The company has a good history of either maintaining or increasing its dividends starting from the financial year that ended on March 2009. At S$1.405 a share, Boustead’s selling for 8.7 times its full-year earnings and sports a dividend yield of 5%.
Global Logistics Properties (SGX: MC0)
Global Logistics Properties, as its name suggests, provides logistics facilities in a total of 62 cities in China, Japan and Brazil. The company has a financial year that starts and ends on March and ended the latest one with a 21% year-on-year growth in earnings-per-share from US$0.1153 to US$0.1395.
The company cited revenue growth and revaluation gains from its existing properties as key drivers for the EPS increase. In particular, GLP’s revenue from China had jumped by more than half from US$159.6m in the prior year to US$252.1m, on the back of acquisitions, growing rents and the completion of development projects in the Middle Kingdom.
China now makes up 39% of the company’s revenue base, a commendable increase from its 28% share in the previous financial year. The company continues to have high hopes for its operations there and management “sees solid demand from various customer segments, such as 3rd Party Logistics companies and on-line retailers”.
The higher income earned by GLP also enabled it to propose a dividend of S$0.04 per share that is 33% higher than the previous year’s S$0.03. With the company’s latest EPS and dividend, its shares have a Price-Earnings ratio of 16.3 and dividend yield of 1.4% at the current price of S$2.83
Yongmao Holdings (SGX: E6A)
Hailing from China, Yongmao designs and manufactures tower cranes and the components and accessories needed to run them. Its recently completed financial year, which ended on 31 March 2013, saw it declare a dividend of 0.25 Singapore cents per share. In the previous year, it gave out nothing to shareholders.
The financial year that ended on March 2013 saw the company rake in RMB 22.3m in profits, a complete reversal from a loss of RMB 15.5m that it incurred in the previous year.
On first glance, it might seem that the company has turned its operations around from bleeding red-ink to making some green. Turns out, Yongmao has seen its profit margins shrink tremendously over the years.
The financial year that ended on March 2008 saw the company earn RMB 122.5m on revenues of RMB 652.8m, amounting to a profit margin of 19% – in contrast, the recently completed financial year saw a profit margin of 3.3%. In all likelihood, companies facing deteriorating profit margins will often set up the stage for a disappointing investment. So, buyers beware.
Even though the company managed to eke out a profit for its full year results that was released yesterday, the market seemed displeased as its shares were down by more than 12% to S$0.14 on Tuesday’s opening.
For S$0.14 a share, potential investors in Yongmao would be paying for 14 times’ the company’s earnings and would get a dividend yield of 1.8%.
KSH Holdings (SGX: ER0)
KSH rounds up the list today. The construction and property development company declared in its full year results, released yesterday, that shareholders will be getting a fatter dividend paycheck of S$0.025 per share, up by 67% from $0.015 a year ago.
The company had a good year as a pick-up in construction activity propelled its top-line growth by more than a third to S$231.6m from S$170.6m a year ago. This trickled down to the bottom-line, which almost doubled from S$18.3m to S$36.3m.
Shares of KSH are currently changing hands at $0.595, which translates to a Price-Earnings ratio of 6.3 and a dividend yield of 4.2%.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chong Ser Jing doesn’t own shares in any companies mentioned.