Kian Joo down on weaker Q2 earnings (3522)

KUALA LUMPUR: Kian Joo Can Factory Bhd shareholders have more
reason to cheer, after the company proposed to return over 60 per cent
of its first half net profit as dividend.

Kian Joo Can Factory,
which saw its share price appreciating by more than 32 per cent so far
this year, plans to return 6.25 sen a share or RM27.76 million to its
shareholders.

The dividend comprises an interim dividend of 2.5 sen a share, and a special dividend of 3.75 sen a share.

The announcements of the interim and special dividend came when the
company released its second quarter financial results, which saw its
second quarter sales growing by about 15 per cent to RM304 million
while net profit declined by about 40 per cent to RM18.43 million.


Kian Joo Can Factory, a maker of tin cans, two-piece
aluminum beverage cans and others also saw its first-half net profits
declining by over 20 per cent to RM45.61 million, while sales rose by
about 10 per cent to RM571.4 million.

The lower earnings were mainly driven its cans division, which saw
lower margins due to downward revision of selling price, higher
operating costs and write down of inventory during the quarter.

Kian
Joo Can Factory shares on Bursa Malaysia rose five per cent or 13 sen
to RM2.73 yesterday, with more than 3.7 million shares changing hands.