September 16

3 High Dividend Yield Gems on Bursa Malaysia

Malaysia is one of the biggest countries in Southeast Asia and has plentiful of resources. There are many great companies that has been created and born out of these great fundamentals. Kuala Lumpur Stock Exchange has almost 1000 listings that are traded daily.

In recent months, glove manufacturers have been dominating the headlines. It is however important to investors, especially dividend investors to know that there are many uncovered gems.

We have endeavoured and scoured the whole exchange to uncover these gems. Here are 3 high dividend yield stocks traded on KLSE that you should know.

#1 Pintaras Jaya Berhad 

Pintaras is a piling and foundation specialist based in Klang Valley, Malaysia with 30 years of experience in the local construction industry. Its range of services include earth retaining systems, basement and substructure works, ground improvement, earth works, and civil engineering works. It has presence in both Malaysia and Singapore.

As its latest quarterly report, Pintaras’s revenue increased significantly by 54.6% to MYR 348 million. Its net profit increased by an astounding 185.9% to MYR 28.5 million. Free cash flow turned positive and came in at a MYR 6.5 million. As a result, cash balance of the company increased to MYR 26.1 million.

In FY 2019, Pintaras paid out a total dividend of MYR 0.20 per share which represents a dividend payout ratio of 127%. Despite paying out more than its earnings, Pintaras has been cash flow positive which provides the fundamental support for its dividend payment.

Pintaras last closed at MYR 2.32, which values it at a P/E ratio of 8.61 and dividend yield of 6.9%.

#2 Pantech Group Holdings Berhad

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Pantech is a manufacturer of pipes, fittings, flanges, valves, and other components. Its business is divided into two components – manufacturing and trading of its products. It is headquartered in Malaysia and has presence in Singapore and United Kingdom.

As its latest quarterly report, Pantech’s revenue dropped by 44.4% to MYR 80.7 million. Its net profit turned negative to MYR 5.6 million. The relatively bad results were an effect of COVID-19 as Malaysia was faced with lockdowns.

Moreover, as oil industry players are big clients, the slump in oil prices inadvertently affected Pantech. However, free cash flow remained positive and came in at a MYR 6.5 million. As a result, cash balance of the company increased to a healthy level of MYR 98.2 million.

In FY 2019, Pantech paid out a total dividend of MYR 0.0189 per share. This represents a dividend payout ratio of 39.1%. Pantech has been prudently issuing dividends and has kept its cash levels in check. This is mainly due to the nature of its manufacturing business where cash conversion might be slow sometimes.

Pantech last closed at MYR 0.37, which values it at a P/E of 14.68 and dividend yield of 5.35%.

#3 Focus Point Holdings Berhad

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Focus Point is primarily an optical player which has many optical stores sprawled across Malaysia. In 2012, it has also ventured into F&B which provides pastries and has bakeries outlets. The group predominantly operates in Malaysia.

As its latest quarterly report, Focus Point’s revenue decreased slightly by 13.3% to MYR 39.6 million. As a result, its net profit decreased by 15.7% to MYR 1.8 million. Free cash flow came in at a MYR 13.4 million. As a result, cash balance of the company increased to MYR 14 million.

In FY 2019, Focus Point paid out a total dividend of MYR 0.025 per share. This represents a dividend payout ratio of 46.4%. Generally, Focus Point has a dividend policy of paying out not less than 30% of its profit after tax.

Focus Point last closed at MYR 0.42, which values it at a P/E ratio of 8.2 and dividend yield of 4.27%.

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Tags

Bursa Malaysia, dividend gems, dividend stocks in malaysia, dividend yield, focus point, high yield, pantech group, pintaras


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