Tek Seng adopts 30% dividend payout policy, about to tie up with a foreign cornerstone institutional investor

by **Cals** Tue 25 Nov 2014, 00:16

Tek Seng adopts 30% dividend payout policy, about to tie up with a foreign cornerstone institutional investor

KUALA LUMPUR (Nov 24): Tek Seng Holdings Bhd has announced a dividend payout ratio of at least 30% of the group's net profits as its new dividend policy, with effect from the financial year ending Dec 31, 2015 (FY15).
Additionally, it said it has received numerous inquiries from both local and foreign investors and fund managers, attributing it perhaps to its "stellar performance" recently.
In a statement, executive chairman Loh Kok Beng said: "We are in serious talks with a few potential investors both local and foreign and in the final stages on a tie up with a foreign cornerstone institutional investor which sees tremendous value in our appetite for growth and expansion in the green energy industry."
A check from Tek Seng's latest annual report showed its top 30 shareholders are mostly, if not all, individuals.
"Even though we are already in the habit of paying our shareholders dividends, but with stable income coming in from our expansion, we are pleased to now set a dividend policy," Loh said, adding that Tek Seng is always looking to reward its shareholders and enhance its shareholders' value.
"On the business side, we have been trying to tap new opportunities, expand and grow our business strategically. This can be seen recently when we successfully secured about RM100 million in investments from one of Taiwan's leading solar PV companies, Solartech Energy Corporation in cash and also in expansion assets," Loh said.
He added that with this investment, the group will be able to see steady growth and stability in terms of its development and long term performance.
Tek Seng had on Oct 30 announced that it will issue 120 million free warrants to its shareholders on the basis of 1 warrant for every 2 shares held in the company.
"We want to express our gratitude and appreciation to all our shareholders through these new initiatives and rewards," Loh said.
For the six months ended June 30, 2014 (1HFY14), Tek Seng's net profit jumped 10 times to RM10.8 million from RM1 million in the previous corresponding period. Revenue came in 25.6% higher at RM122.35 million, compared with RM97.44 million.
Tek Seng closed down 0.5 sen or 0.61% today at 81 sen, giving it a market capitalisation of RM194.4 million.