Hot Stock Tasek Corp rises 4 sen on expected high yields

by **Cals** Wed 12 Nov 2014, 03:02

Hot Stock
Tasek Corp rises 4 sen on expected high yields

By Ahmad Naqib Idris / TheEdge Markets.com | November 11, 2014 : 3:17 PM MYT

KUALA LUMPUR (November 11): Tasek Corporation Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) rose 4 sen today after the stock was highlighted as a top pick by Insider Asia, as it expects the company to maintain its high yields.

At 3pm, Tasek was traded at a high of RM17.16, up 4 sen or 0.23% with a total of 12,700 shares traded.

In a report today, Insider Asia highlighted that Tasek enjoys high levels of operational efficiency and profitability and rewards shareholders with rising dividends.

“In 2011 and 2012, Tasek paid dividends totalling 75 sen and 90 sen per share (inclusive of special dividends), respectively. Last year saw dividends increased to RM 1.44 per share, which translates to a decent yield of 8.4% based on most recent price of RM 17.12.

“This is significantly higher than prevailing bank FD rates, which are hovering around 3.3% for a one-year tenure,” said the research house.

It also noted that Tasek has fared well despite the challenging cement industry, as it has maintained consistent earnings and relatively high margins.

Insider Asia expects the company to maintain a high dividend payout to shareholders, based on its stable operating cashflow and strong balance sheet.
[size=14]“[size=14]TheEdge Research rates Tasek a 2.7 out of 30 on fundamentals and 2.1 out of 3.0 on valuation,” said Insider Asia. [/size][/size]