Wednesday, December 23, 2020

Merry Chiristmas! Here are 3 Companies that will likely increase their dividends in 2020/21

Merry Christmas, readers. 

How time flies. The end of the holiday is coming, the hectic pace of work will pick up soon and I will miss thinking, researching and blogging soon.

Here are 3 Counters I believed will increase their dividends is 2020 or/ and 2021

All 3 counters have more or less a payout ratio policy, and pay more when time are good/ bad. Also, all three companies should have better earnings in 2021, due to either better addressable market or simply riding the tide. 

1) UOB kayhian pay out 50% of NP, plus minus, and 1H EPS is 9 cents. Due to the crazy trading during this crisis year, comission interest went up by 90%. How they will do in 2H is anybody guess, but with retailers setting up accounts, low interest rate, and a market in generally swinging from excitment of vaccines, and Brexit and many elections to come in 2021, I believe Volatility will be high and trading will likely improve rather than deteriorate, as no bull or bear can be dominaint

2) CSPC Parma (HK: 1093)

This is an company that kind of blows my mind. They have a payout ration of around 30% and has been increasing their dividends in the last 5 years. 


If you look at margin and ROE, ROIC, it is amazing? right? I couldnt believe my eyes. Payout ration is 30%. Topline and bottom line are also increasing. 

https://secure.fundsupermart.com/fsm/stocks/factsheet/HKEX.1093/CSPC-PHARMA

You can look at other metrics at the above link yourself. It also has a strong balance sheet. I spent quite a bit of time reading up the AR and etc, wanted to know why is such a strong growing company has a shares price that is near 25 years low. 

Someone in the community pointed out that China has various regulartion regarding medicine, and basically, the few that will affect CSPC are 1) Centralised competitive tenders 2) Risk of having medicine removed from rebursement list (No longer subsidized), and one such drug has sales fallen by 60% because of this. 3) No mark up of medicine by hospitals (Hospitals has no incentive to push the sales of certain medicine)

However, the numbers show that it is still growing, especially is Class 1 medicine (Exclusive rights), also they have a record number of medicine to be luanched and in the pipleline as compared to the last 4-5 years. I feel that the market is undervaluing it. 

https://www.dbs.com.sg/treasures/aics/templatedata/article/equity/data/en/DBSV/012014/1093_HK.xml
https://www.dbs.com.sg/treasures/aics/templatedata/article/equity/data/en/DBSV/012014/1093_HK.xml

3) YZJ

YZJ aim to pay out  at least 30% of earnings, although they woud pump it out in a rough year. 2020, EPS is unlikely to exceed 2019, the growth so come in 2021. There are a few trends going for it. Order book improvement is one direct factor. Over the years, YZJ has proven to be able to build a repetoire of different vessels, it has even managed to deliver a rig. Containers freight is improving, low sulphur emisson requirement will drive scrapping of older vessels. 


Conclusion:
While it is likely that dividends will be increase, it is of no use if you suffer capital loss. YZJ has an HTM business, and has taken an significant impairment in the latest quarter. CSPC has very strong balance sheet, but the dividend yield is low, around 2.5 % (They already started intern dividends).

Kayhian dividend yield is still attractive, but going beyond 2021, it is any guess. Also, it has went from $1.08 to $1.4. I would think the MOS is dwindling. 

One need patience, for CSPC to grow over a few years, and time is always a risk. 

As for recovery of dividends, the banks have potenial, once MAS lift the ceiling for dividends, and the relief scheme expires without spike in bad loans and credit cost. I however, put this as a hope rather than a high probabality. 

Enjoy Christmas. Leave a comment if you have ideas of dividend growers. 

 


6 comments:

  1. Hello Everyone, i am from Florida USA. I want to share my testimonies to the general
    public on how this great man called Dr OLOKUN who cure my herpes. I have been a HERPES patient for over 9 Months and i have been in pains until i came across this lady when i traveled to Africa for business trip who happer and she told me that there is this great herbal doctor that help her tocure her herpes and she gave me his email address for me to contact and i did as she instructed. The man Dr OLOKUN told me how much to buy the
    herpes herbal medication and how i will get it, which i did. And to my
    greatest surprise that i took the Herpes herbal medicine for just two week as he
    instructed and behold i went for a herpes test, to my greatest surprise for the
    doctor confirmed me to be herpes free and said that i no longer have
    herpes in my system and till now i have never felt any pains nor herpes again, so i
    said i must testify the goodness of this man to the general public. So if
    you are there surfing from this Herpes problems or any deadly disease or
    other disease for i will advice you to contact him on his working
    email: drolokuntemple@gmail.com OR whatsapp hem on this very numberor +2348132537313


    ReplyDelete
  2. Hello Everyone, i am from Florida USA. I want to share my testimonies to the general
    public on how this great man called Dr OLOKUN who cure my herpes. I have been a HERPES patient for over 9 Months and i have been in pains until i came across this lady when i traveled to Africa for business trip who happer and she told me that there is this great herbal doctor that help her tocure her herpes and she gave me his email address for me to contact and i did as she instructed. The man Dr OLOKUN told me how much to buy the
    herpes herbal medication and how i will get it, which i did. And to my
    greatest surprise that i took the Herpes herbal medicine for just two week as he
    instructed and behold i went for a herpes test, to my greatest surprise for the
    doctor confirmed me to be herpes free and said that i no longer have
    herpes in my system and till now i have never felt any pains nor herpes again, so i
    said i must testify the goodness of this man to the general public. So if
    you are there surfing from this Herpes problems or any deadly disease or
    other disease for i will advice you to contact him on his working
    email: drolokuntemple@gmail.com OR whatsapp hem on this very numberor +2348132537313


    ReplyDelete
  3. I have been a herpes carrier for 2 years and I tried every possible means of curing but all of no useful until I saw a health promotion on a herbalist from West Africa who prepares herbal medicines to cure all sorts of diseases including #HSV and many others sickness but look at me today am very much happy and healthy, I'm telling you today don't lose hope keep trying God is with you, If you needs Dr.Chala help contact him on his email dr.chalaherbalhome@gmail.com or you can visit his website on http://drchalaherbalhome.godaddysites.com or https://mywa.link/dr.chalaherbalhome

    ReplyDelete
  4. Do you need to increase your credit score?
    Do you intend to upgrade your school grade?
    Do you want to hack your cheating spouse Email, whatsapp, Facebook, instagram or any social network?
    Do you need any information concerning any database.
    Do you need to retrieve deleted files?
    Do you need to clear your criminal records or DMV?
    Do you want to remove any site or link from any blog?
    you should contact this hacker, he is reliable and good at the hack jobs..
    contact : cybergoldenhacker at gmail dot com

    ReplyDelete
  5. PPoint of Care CNAs are often used in rural areas where there are few nurses available for employment.

    ReplyDelete
  6. это хорошо : Film Terbaru
    это хорошо : Luffy One Piece
    это хорошо : Biodata
    это хорошо : Resep Masakan
    это хорошо : Biodata
    это хорошо : Biografi
    это хорошо : Sinopsis Film Terbaru
    это хорошо : Biografi

    ReplyDelete