Public Bank says 50% dividend payout policy remains

Public Bank says 50% dividend payout policy remains

Written by Chua Sue-Ann of theedgemalaysia.com
Monday, 14 March 2011 15:18


KUALA LUMPUR: PUBLIC BANK BHD [] has assured shareholders that it was in the position to maintain its 50% dividend payout policy in the medium term despite the impending Basel III requirements.

Public Bank chief operating officer Leong Kwok Nyem on Monday, March 14 told shareholders that Public Bank aimed to balance between the need to meet regulatory capital requirements and the needs to optimise returns to shareholders.

"The group's strong earnings generation capabilities will help the group to have the capital to support its strong organic growth strategy and to maintain its dividend payout ratio," Leong said, in response to questions from shareholders at Public Bank's annual general meeting today.

Public Bank recently announced its fourth quarter ended Dec 31, 2010 (4QFY10) results which saw net profit grow 24.85% to RM846.19 million from RM678.23 million a year ago, driven by higher interest income, fee-based earnings and smaller provision for bad loans.

This was on the back of a 18.8% revenue increase to RM2.97 billion from RM2.5 billion a year ago.

For the 12 months, Public Bank's net profit rose 21% to RM3.05 billion from RM2.52 billion a year ago while revenue rose 13.6% to RM11.04 billion from RM9.72 billion.

For its 4QFY10, Public Bank declared a cash dividend of 33 sen per share, comprising a franked dividend of 25 sen less income tax and a single-tier dividend of eight sen per share.

Public Bank's total gross dividend payout for FY10 was 58 sen per share.

To a shareholder's question about a rights issue, Leong said Public Bank had the capital to support its strong organic growth strategies without having to return to shareholders in a rights issue exercise.

Leong added that Public Bank's capital ratio were healthy, at 10% for its Tier 1 Capital ratio, 13.7% risk weighted capital ratio and 7.2% core equity capital.

Asked about overseas expansion plans, Public Bank co-chairman Tan Sri Thong Yaw Hong assured shareholders that the bank's board and management was always alert about opportunities and mindful of its challenges.

One shareholder had voiced concern that Public Bank had been less aggressive than its competitors in overseas expansions.

Meanwhile, in a statement Public Bank said it plans to add six branches to its existing 21 branches in Cambodia, four new branches in Vietnam and one new branch in Laos this year.

Overseas, Public Bank currently has 81 branches in Hong Kong, three in Shenzen, China, seven in Vietnam, three in Laos and one in Sri Lanka.

Japan impact rattles investors

Adele Ferguson LONDON

March 14, 2011

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THE biggest earthquake in Japan's history left the global equities and insurance markets reeling as experts spent the weekend grappling with the financial impact on the world's third-biggest economy and the knock-on effects to the global recovery.

Global markets wobbled, oil prices closed lower, the futures market for grain commodities dived and shares in global insurance and reinsurance stocks fell as analysts began to tally up the losses caused by the earthquake, the tsunami and the implications of a nuclear meltdown in the wake of cooling system damage.

Initial estimates of the damage to the Japanese economy are about $100 billion, with the global insurance industry believed to be exposed to less than $15 billion.

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The Japanese government will bear most of the costs as it reinsures most homeowner earthquake insurance policies in a giant pool fund.

Share prices in Japan are expected to fall further when trading resumes today, while in Australia the futures market suggests a gain on opening. But given news over the weekend about the state of nuclear fallout, the loss of life and the disruption to economic activity, investors will be grappling with the impact for some time.

In the short term, economists believe the impact on the Japanese economy will be negative, in part due to physical damage to infrastructure and capital stock and because of the psychological trauma suffered by the Japanese, which is likely to trigger risk aversion, a drop in consumer confidence and an increased urge to save.

This could prove a negative for Australia as Japan is its second biggest export market, accounting for more than $37 billion of exports last year.

Investors expect Japan will be forced to increase its already bloated borrowing in a weak economic environment to finance the massive rebuilding project.

The damage has also triggered a debate about whether the earthquake will be a market-changing event for the insurance sector. Since the start of the year natural disasters, including floods and a cyclone in Australia and an earthquake in New Zealand, have wreaked havoc on the insurance and reinsurance industries, leaving the sector exposed to more than $50 billion in damages.

With so many catastrophes, the expectation is that prices will be pushed higher in the July 1 reinsurance renewals. If prices rise, general insurers will be forced to pass them on in higher premiums.

The insurance industry has been suffering from a so-called soft market. That happens when their prices come under pressure as insurers and reinsurers have lots of spare capital and compete more for business.

http://www.smh.com.au/business/japan-impact-rattles-investors-20110313-1bsx4.htm
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Dutch Lady to increase market share

Dutch Lady to increase market share
Published: 2011/03/11


Dutch Lady Industries Bhd, a dairy products manufacturer, aims to significantly strengthen its market share in the growing milk segment with the launch of the improved formulation of the Dutch Lady Growing Up Milk.

With five times more docosahexaenoic acid (DHA) than the previous one, it would ease nutritional challenges faced by parents in providing healthy diets for their children, said Marketing Director Rahul Colaco.

"When we developed the improved formulation, we took into account to make DHA more readily and easily available so that it can contribute to children's healthy diet," he told reporters after launching the new formula today.

He said the new formula was also expected to markedly increase the company's revenue as the milk segment was one of the biggest revenue contributors.

Currently, milk products contributed 50 per cent to the turnover, he added.

Dutch Lady is the market share leader in the growing up milk segment with the Dutch Lady brand holding 40 per cent of the market share.

To date, the company has 150 products across different brands and segments.
-- BERNAMA


Read more: Dutch Lady to increase market share http://www.btimes.com.my/Current_News/BTIMES/articles/20110311153000/Article/index_html#ixzz1GHoHPyeE

Petronas Dagangan

Capital gain:

1000 shares of Petdag @ $8 per share (Cost $8,000) in 2005 has grown into 

2000 shares of Petdag @ $14 per share (Market value $28,000) in March 2011.

Don't forget to add the GROWING dividends!

3 Aug 2010	0.15 Dividend
7 Dec 2009	0.15 Dividend
5 Aug 2009	0.33 Dividend
10 Dec 2008	0.12 Dividend
1 Aug 2008	0.33 Dividend
14 Dec 2007	0.12 Dividend
12 Dec 2005	0.05 Dividend
17 Aug 2005	0.10 Dividend
30 Nov 2004	0.10 Dividend
5 Aug 2004	0.20 Dividend
10 Dec 2003	0.20 Dividend
23 Jul 2003	0.10 Dividend
22 Jul 2003	0.10 Dividend
* Close price adjusted for dividends and splits.

Nestle Malaysia budgets up to RM120m for capex

Nestle Malaysia budgets up to RM120m for capex


Written by Kamarul Azhar
Tuesday, 08 March 2011 11:52


PETALING JAYA: Nestle Malaysia Bhd has budgeted RM100 million to RM120 million to expand its capacity this year.

“Majority of the sum is to be invested in increasing the capacity and innovation, while the smaller part will be on maintaining and upgrading the factory,” its managing director Peter Vogt told The Edge Financial Daily.

He said the increase in capacity at the company’s factory allows the group to expand its export market, namely Indonesia and the Philippines, as well as the domestic market.

The budget for capacity expansion is in line with the group’s priority on having organic growth, instead of growing by mergers and acquisitions.

Acknowledging that the food and beverages industry has gone through some consolidation lately, however, he said there were not that many opportunities for acquisition.

However, he added that Nestle is always open for such acquisitions, which suit well into the overall strategy of the group.

Vogt: Increase in capacity at the company’s factory allows the group to expand its export market, namely Indonesia and the Philippines, as well as the domestic market.


“Every year we have allocated some money for capital expenditure. Some of it would be for upgrading the factory or increasing the capacity, or maybe for a totally new product,” said Vogt.

He added that the investment planned for this year would be for a wide range of activities, such as factory upgrading and maintenance, and increasing the capacity by adding more operation lines in various areas.

In October last year, the company purchased a piece of land adjacent to the company’s plant in Shah Alam from British American Tobacco (M) Bhd (BAT) for RM36 million cash. The land, according to Vogt is slated for future expansion of the capacity of the plant.

“The land is adjacent to our facility so now we have more space to expand our capacity,” he noted.


This article appeared in The Edge Financial Daily, March 8, 2011.

Transformation on track for Pos Malaysia

Transformation on track for Pos Malaysia

Written by Financial Daily
Tuesday, 08 March 2011 11:12


Pos Malaysia Bhd
(March 7, RM3.05)

Maintain buy at RM3.08 with revised target price of RM4.12 (from RM4.45): Pos Malaysia’s analyst briefing was centred on the latest 4Q results and progress made on its transformation master plan, which highlighted the impact to volume following the postal tariff hike, measures to mitigate the impact of declining mail volume as well as its efforts to reduce operating costs through effective delivery beat management. All in, we gather that Pos’ transformation plan remains on track given that all its 2010 key performance indicators had been achieved.

While we expect mailing volume to continue to decline, the retail contribution from its tie-ups with banks will offset the overall impact. Revenue growth is projected to be on an uptrend as the company would see the full effects of the tariff hike in FY11.

Furthermore, we expect overall margins to continue to expand as the impact of the postage will offset the full year effect of the 2010 salary hike.

However, owing to spiralling costs on assumption of higher jet fuel and staff costs, we are trimming our earnings forecasts by 17.1% for FY11 and 13.3% for FY12.

The unveiling of its strategic partner is expected to be announced in the next one to two months as the deadline of March 15 for bidding draws near.

Potential relaxation of the use of its lands bank under the purview of the Postal Bill appears to be progressing well as the draft Bill will be tabled in Parliament this month. We expect the proposed amendments related to relaxation will go through as it would make more economic sense for the government to optimise the potential value of the landbank.

We maintain our “buy” recommendation on Pos, but have downgraded our target price to RM4.12 following the downward revision in earnings (from RM4.45).

We continue to value Pos on a sum-of-parts basis to capture the near-term earnings impact, where we apply a 14-time PER (from 13 times historical forward PE with inclusion of the strategic partnership catalyst premium), and the value of its five pieces of land not under the purview of the Postal Bill and its net cash. Maintain buy. — OSK Research, March 7


This article appeared in The Edge Financial Daily, March 8, 2011.

Banking sector: Valuations are undemanding

Banking sector: Valuations are undemanding

Written by Financial Daily
Tuesday, 08 March 2011 11:28


Banking sector
Maintain overweight:

The sector’s value proposition lies in (i) stable economic growth which lends support to our aggregate net profit growth forecast of 11.6% for 2011 and 11.8% for 2012; (ii) benign inflation and bottoming margins; (iii) steady loan growth momentum; (iv) potential Economic Transformation Programme upside surprises; (v) cross-synergies and burgeoning contribution from regional operations to group earnings; (vi) healthy capital ratios; and (vii) decent valuations and dividend yields. RHB Capital and CIMB continue to be our top picks.

Results were broadly within expectations, with recurring net profit up 24% year-on-year (y-o-y). While cumulative loan growth was a commendable 12.9% y-o-y, net interest margin (NIM) compression during the period contributed to a more moderate 10.3% y-o-y expansion in net interest income, while fee income and other non-interest income growth rates were a modest 6.8% y-o-y respectively. Operating expenses, meanwhile, rose 10.1% y-o-y. Consequently, operating profit rose by a slower 11% y-o-y, while the jump in net profit was driven primarily by lower loan loss provisions, which fell a sizeable 34.5% y-o-y in 2010.

Our industry loan growth estimate is raised to 11.5% for 2011 from 10%-11% previously and we forecast 2012 loan growth at 10.5%. We expect household loan demand to moderate from 13.2% for 2010 to about 10.5% for 2011 and 8% for 2012, but expect non-household (business/government) lending to pick up the slack with growth rates of 12.7% and 13.5% for 2011 and 2012 respectively, from 12.3% for 2010.

We project recurring net profit growth of 11.6% and 11.8% for 2011 and 2012 respectively for the top 5 banks, on operating profit growth of 8.6% for 2011 and 12.4% for 2012. We expect cumulative loans (domestic and regional) for the top 5 banks to expand by 12% for 2011, 10.9% for 2012. While we have imputed a 6-11 basis points NIM contraction this year, we expect NIMs to bottom out and recover in 2012, aided in part by likely rate hikes in 2H10. Amid volatility in the external environment, we are factoring in moderately higher non-performing loans.

Valuations are undemanding, in our opinion, with the large banks trading at a prospective 2011 calendarised PER of 13.1 times, 11.7 times for 2012. Separately, the sector trades at a prospective 2012 P/BV of 1.9 times supported by an average ROE of 16.9%. Dividend yields, meanwhile, average a decent 4.2% and 4.7% for 2011 and 2012 respectively. — Maybank IB Research, March 7


This article appeared in The Edge Financial Daily, March 8, 2011.

Cocoa crunch

Cocoa crunch


Written by Chong Jin Hun
Monday, 07 March 2011 11:45


KUALA LUMPUR: Having a cup of nicely brewed coffee and a chocolate brownie for your afternoon tea break could soon be an expensive affair should the price of coffee and cocoa beans continue to rise.

Costlier coffee and cocoa beans are also eating into the profit margins of the food and beverage (F&B) manufacturers beyond putting a squeeze on consumers’ wallets.

Against such a backdrop, some of the consumer stocks on Bursa Malaysia — long considered sound defensive picks — are becoming less safe due to the looming margin squeeze and weaker demand as their products get more expensive.

Already, these companies, including names like Nestle (M) Bhd, Cocoaland Holdings Bhd, London Biscuits Bhd and Apollo Food Holdings Bhd, have reported weaker quarterly results due to higher input costs.

Cocoa prices rose to a 32-year high at US$3,706 (RM11,230) a tonne last week due to the ongoing political crisis in Ivory Coast, which produces 60% of the world’s output. The commodity has rebounded 46% from a low of US$2,543 a tonne in June, 2009.

Meanwhile, supply fears pushed the price of coffee to a high of US$2.74 (RM8.30) a pound in February, more than double the low of US$1.27 a pound seen in March 2009. Concerns over poor harvests in coffee producing countries like Mexico, Colombia and Kenya have been exerting upward pressure on prices.

Nestle’s net profit for 4QFY10 ended Dec 31, plunged 54% to RM39.3 million from RM86.2 million in the corresponding period a year ago, despite higher revenue of RM963.9 million versus RM950.6 million. The group attributes the profit contraction to the sharp increase in cocoa and milk prices that dented its gross margin.

Nestle says the average price of cocoa powder more than doubled in 2010 compared with the previous year, while the price of skimmed milk powder rose about 20%.

“The sharp increase in global commodity prices and the government’s gradual reduction in food and fuel subsidies, which puts pressure on the group’s input costs, remains a concern.

“The group will continue to closely monitor the development of commodity prices, evaluate and adjust its pricing policy accordingly,” Nestle said in its results briefing.

Where possible, Nestle says it will use operational efficiencies and cost-saving measures to avoid passing on the price increases to consumers.

To mitigate the cost pressures, Nestle raised prices for some of its products last month. The price of Milo Fuze and powder products have gone up by between 5% and 6%, while the price for the Nescafe three-in-one product is up by 4%.

Nestlé is seen as a reference point when it comes to raising prices, analysts and industry observers say. Other food manufacturers are expected to follow in Nestle’s footsteps.

Tai Chun Wah, Cocoaland’s group accountant, says rising cocoa bean prices will crimp the company’s bottom line in the short term.

Tai says the manufacturer, which produces chocolate confectioneries, will pass the additional cost to consumers within six months.

“In the short term, the higher inputs costs will reduce profits,” Tai says.

Cocoaland’s net profit halved to RM9.52 million for FY2010 ended Dec 31. In its latest quarterly result announcement, Cocoaland warned that it faces greater challenges ahead in anticipation of higher raw material prices and intense competition in domestic and overseas markets.

Tai believes that raising selling prices is an emerging trend as big players like Nestle have started to do so. “Consumers have to accept it,” he says.

He adds that he expects cocoa prices to rise further due to supply concerns.

London Biscuits said in its results announcement for 2Q ended Dec 31, that it expects its financial year ending June 30, will be another challenging year. The confectioner reported a 76% plunge in net profit to RM1.08 million for the quarter.

Apollo, meanwhile, saw its net profit decline 31% to RM3.95 million in 2Q2010 ended Oct 31. It attributes this to higher operating costs and lower gains from the disposal of available-for-sale financial assets.

“Despite the improvement in the global and domestic economy, the group’s operating environment is expected to remain challenging and competitive,” the company said in notes accompanying its quarterly numbers.

While the F&B companies are feeling the bite of high commodity prices, there is a liver lining for some, as Malaysia is a producer of cocoa, though not a major one.

Malaysia produced 18,152 tonnes of cocoa beans in 2009, according to the Malaysia Cocoa Board. Of this amount, 13,213 tonnes came from Peninsular Malaysia, 3,688 tonnes from Sabah and 1,251 tonnes from Sarawak. Production is estimated to have fallen to 15,654 tonnes in 2010.

Malaysia’s cocoa bean production is mostly undertaken by smallholders, rather than large plantation players, and these smallholders will benefit from higher prices.

The country’s cocoa production has declined greatly as low prices in the past prompted farmers to switch to more lucrative crops. In 1990, for instance, the country produced 247,000 tonnes -- a staggering 13.6 times more than 2009’s output.

Guan Chong Bhd, a cocoa-ingredient producer, is riding the rally in cocoa prices. It is sitting on a large inventory of cocoa beans that has appreciated in value due to rising prices. The company’s inventories totalled RM154.92 million as at end-2010

“We can buy high and sell high,” says Brandon Tay Hoe Lian, Guan Chong’s managing director and CEO. He adds that the company can always pass on additional costs to customers.

For FY2010 ended Dec 31, Guan Chong’s net profit soared seven-fold to RM100 million as revenue rose 83% to RM1.17 billion.

The company says its financials were also helped by foreign exchange gains due to the strengthening ringgit. The firm also booked gains from commodity futures contracts, and foreign exchange derivatives.

It is also worth watching companies like MBf Holdings Bhd, which operates coffee and cocoa plantations in Papua New Guinea.

MBf Holdings’ website indicates that the company has a 1,100ha coffee plantation and 2,100ha of land for tea cultivation in Papua New Guinea. Details about its cocoa operations were however not specified.

Agriculture operations in Papua New Guinea accounted for 11% of MBf’s revenue in the financial year ended Dec 31, 2010, its latest quarterly results showed.


This article appeared in The Edge Financial Daily, March 7, 2011.

How to overcome your financial fears in investing?

These are the usual three basic fears one has to face in investing, namely:

Fear of loss
Fear of failure
Fear of unknown

Here are some suggested ways to overcome these:

Fear of loss:  Understand the probabilities and consequences of any potential loss(es) in your investing.  Always remember, in the face of uncertainties, your investing actions should be based on the consequences rather than the probabilities of these loss(es) occurring.

Fear of failure:  Nothing venture, nothing gain.  Without trying, you have already failed.  Seize the opportunity.  Be prepared for possible failures too, but take these as valuable lessons preparing you for a better future.

Fear of the unknown:  Research the topic well to become knowledgeable.


Also read:
I Will Tell You How to Become Rich: "Be fearful when others are greedy, and greedy when others are fearful."
http://myinvestingnotes.blogspot.com/2010/12/i-will-tell-you-how-to-become-rich-be.html

There's value in the basics. Stick to some simple rules when investing

February 28, 2011

Share star...Lexie Petroff trusts her ears and her instincts when investing. Photo: Simon O'Dwyer

In the final instalment of a three-part series, Bina Brown recommends sticking to some simple rules when investing.

Whether it is through a share club, a stockbroker, a financial adviser or reading books, there is nothing more valuable than knowledge when it comes to understanding the sharemarket.

There are some basic truisms that you will repeatedly come across, such as: don't put all your eggs in one basket and it is time in the market, not timing. While the temptation might be there to invest heavily in one company at the expense of any others, or put everything in the sharemarket while ignoring other asset classes, it is not a sound strategy.

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Diversification reduces risk. Diversification can be quite broad, where you invest some money in shares, property and cash. In the event one of these asset classes declines, you have not lost everything. A diversified share portfolio might be one that includes investments in sectors, including banking and finance, media, health and resources. Diversification generally means a lower level of volatility and higher long-term return.

Then there is that saying: It is the time in the market - not timing the market. It has been repeatedly proven that all shares have their troughs and peaks but, with great companies, the peaks are generally significantly stronger than the troughs.

If there is a downturn or correction in the market, it is important investors don't panic and realise their losses at the worst time. Nor would they want to be out of the market when the market bounces back.

Dollar-cost averaging sits well with timing. It is human nature to sell things when times are bad (so things are cheap) and buy when times are good (usually more expensive).

Essentially, if you decide to invest $1000 twice a year in one company, assuming the shares rise and fall in that time, you will end up buying the most shares when they are at their lowest price and the least shares when they are at their highest.

Portfolio construction

A Prescott Securities private client adviser, Ben Prisk, says diversification of stocks is an important component in portfolio construction. However, the risk reduction benefit is less with each share added to a portfolio, he says.

"Given most share investors are trying to outperform the return of the broader All Ordinaries sharemarket index, some level of risk by way of establishing concentrated positions is good," Prisk says.

He says that depending on the amount of money someone has to invest, on average the target is for 10 to 20 stocks across a portfolio, where the benefits of diversification are not outweighed by the added complications.

He says it is often a temptation to keep acquiring new stock positions across a portfolio without assessing the broader merits of doing so. It might be time for some hard decisions.

Prisk says investors should be prepared to take a profit on a particular stock or possibly crystallise a loss if they see a better buying opportunity. "Whilst it is psychologically difficult to sell investments at a loss, if you can't establish an earnings catalyst for a particular company in the foreseeable future, the disposal and subsequent repositioning of the investment can deliver improved performance to your portfolio," he says.

Gearing

Going into debt to buy shares will not be for everyone but those who are happy to borrow money might consider two options.

The first is a margin loan, using the shares as security against a loan. If the value of the shares falls, an investor may have to either sell some shares to reduce the loan-to-valuation ratio or find some more cash.

Another, generally cheaper, option is to use existing equity in your home.

Hans Kunnen, a respected market economist, author and former head of investment markets research at Colonial First State, says borrowing to buy shares is like borrowing to buy an investment property but is less risky, has less paperwork and you can start with less money.

"Dividends pay off interest costs over time, your loan is tax deductible and dividends come with a large part of their tax already paid," Kunnen says. "Borrowing to buy shares is all about patience and cash flows. It is not about getting rich overnight. Good-quality, dividend-paying companies have seen their dividends rise over time and will see further growth as the Australian economy expands."

Keeping a finger on the pulse

TWO-TIME winner of the Bayside Shares Investor Award, Lexie Petroff, uses her own instincts to select the companies in which she is going to invest.

"I read newspapers and follow the news and generally watch what the community is saying and doing," says the Melbourne-based naturopath. Using this simple formula Lexie sold her shares at the start of the global financial crisis at a high.

She is now back in the market, following the same logic, although not as intensely as before the market crashed.

Being a naturopath she decided to invest in natural health care provider Blackmores.

"Last year I thought because things were starting to slow down people would be looking for bargains so I invested in The Reject Shop," she says. Her award was for investing a hypothetical $120,000 to pick the best performing portfolio of six stocks in 2010.

Her picks also included Blackmores and Cochlear. Lexie joined the Bayside Blue Chip Share Society — one of several share clubs operating around the country — in about 2006 and continues to meet regularly with a group of investors to discuss shares and listen to sharemarket professionals. "It is a very worthwhile opportunity to meet others who are interested in shares and discuss what is going on in the economy," she says.

The founder of the society, Gavin Adamson, says that while the society is blue chip by nature, many of its members hold a combination of blue-chip, mid-cap and speculative shares in their portfolios.

http://www.smh.com.au/money/investing/theres-value-in-the-basics-20110228-1balo.html

Guan Chong starts grinding cocoa in Indonesia

Published: 2011/03/02

MALAYSIA'S largest cocoa processor Guan Chong Bhd (5102) has commissioned its cocoa grinding plant in Batam, Indonesia, which is expected to improve earnings significantly.

The plant boasts of an initial annual grinding capacity of 60,000 tonnes, increasing the group's total production by 75 per cent to 140,000 tonnes a year. This makes Guan Chong one of the largest cocoa processors in Asia, the company said in a statement yesterday.

The group's existing 80,000 tonnes plant in Pasir Gudang, Johor is almost fully utilised due to a rise in global demand for its cocoa ingredients, it added.

Managing director and chief executive Brandon Tay Hoe Lian said the group had shipped out about 200 MT of cocoa products just two weeks into production at its Batam plant.
He said with a grinding plant in Indonesia, the group can also benefit from processing zero-tariff raw materials.

The plant in Pasir Gudang processes cocoa beans mainly from Indonesia, which recently started to impose export tax of up to 15 per cent on Indonesia-produced cocoa beans on a schedular basis.

Last year, Guan Chong posted a net profit of RM100 million on a revenue of RM1.2 billion.

Read more: Guan Chong starts grinding cocoa in Indonesia http://www.btimes.com.my/Current_News/BTIMES/articles/GUAN1/Article/#ixzz1FOfLsNkH

Calculating Dividends

For example:


PBB
Par Value $1
Tax rate 25%


Company declared dividends per share of:


2nd Interim Franked Cash Dividend 25% Less Tax & 8% Single Tier Cash Dividend




What is the amount of dividend per share you should receive?


Answer:


[(25% x Par Value) x (1-Tax rate)] + 8% x Par Value
= (25% x $1) x (1 - 25%)] + 8% x $ 1
= ($ 0.25 x 75%) + $ 0.08
= $ 0.1875 + $ 0.08
= $ 0.2675


Therefore, you should receive $ 267.50 per 1000 shares (= $ 0.2675 x 1000 ).

Guan Chong expands cocoa grinding capacity to 140,000 tonnes annually

Guan Chong expands cocoa grinding capacity to 140,000 tonnes annually
Written by Joseph Chin of theedgemalaysia.com
Tuesday, 01 March 2011 14:19

KUALA LUMPUR: GUAN CHONG BHD [] has expanded the capacity for cocoa grinding to 140,000 tonnes a year with the successful commissioning of its plant in Batam, Indonesia.

The company said on Tuesday, March 1 it had invested about RM70 million in the first phase of CONSTRUCTION [] and installation of the new plant which has an initial annual grinding capacity of 60,000 tonnes.

“With the new facility, Guan Chong now has a total annual capacity of 140,000 tonnes, adding to the group’s 80,000 tonne facility in Pasir Gudang,” it said.

The Pasir Gudang plant processes cocoa beans mainly from Indonesia, which recently started to impose export tax of up to 15% on Indonesia-produced cocoa beans on a schedular basis.

Guan Chong said with a grinding plant in Indonesia, it would benefit from processing zero-tariff raw materials.

The Batam plant houses an office, warehouse, and production floor containing state-of-the-art production equipment of cocoa presses and filters to produce the whole assortment of cocoa butter, powder, liquor, and cake.

Subsequent two phases of the construction and installation will enable the plant to have a final annual capacity of 120,000 tonnes.