Net income is still growing in the 3rd quarter and from the looks of it, their full year net profit will again surpass their previous year performance. Management has also stated they are cautiously optimistic of their internal target of 20% growth will be met this year.
In other words, EPS will rise about 20% and so will the dividends if it is met.
2009
EPS = 31.74 sens
Dividends = 16 sens (minimum 50% of EPS)
2010
EPS = 31.74 + 20% = 38.09 sens (estimated)
Dividends = 19.05 sens
Current EPS for 3 quarters is 30.14 sens so it won't take much to surpass last years performance and NTA is currently RM1.89 as stated in their latest quarterly report.
Last closing price is RM2.25 on Friday before the results was out, which means the estimated FYE2010 PER is at 5.9x and dividend yield of 8.4%. As per norm, it is common to see share prices appreciate to cause dividend yield to fall to normal levels of of around less than 7%. That would mean the price can appreciate up to RM2.70+ once the next results are out.
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