Fima Corp up after Insider Asia says dividend yield, valuation attractive

by **Cals** Tue 02 Dec 2014, 22:18

Fima Corp up after Insider Asia says dividend yield, valuation attractive

KUALA LUMPUR (Dec 2): Investors bought Fima Corp Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) shares after Insider Asia said the company offered attractive dividend yield and valuations.
Fima Corp owns a concession to produce government security and confidential documents, besides bank notes.
Fima Corp shares rose one sen or 0.39% to RM2.55 at 12.30pm. A total of 28,400 shares were traded.
For comparison, the FBM KLCI fell 7.56 points or 0.4%.
Insider Asia said in a report Fima Corp offered an attractive dividend yield of 4.4%, while payout ratio had doubled from 20.3% in financial year ended March 31, 2010 (FY10), to 41.6% in FY14.
On valuations, Insider Asia said Fima Corp shares traded at a 12-month trailing price-earnings ratio (PER) of 9.73 times and 1.29 times book value.
Bloomberg data showed that the sector average PER is about 26 times.
According to Insider Asia, Fima Corp offers offers investors a high-yielding investment with stable income, thanks to its unusual core business.
"In financial year (FY) March 2014, about 69% of its revenue and 63% of pre-tax profit came from the production of government security documents, such as bank notes, confidential documents and passport materials. The balance is mostly from palm oil, where it has 50,000-acre (20,000 ha) plantation in Indonesia.
"The security documents income comes largely from two subsidiaries, Percetakan Keselamatan Nasional Sdn Bhdand Security Printers Sdn Bhd. The former was privatised to Fima in 1990, and was awarded the government concession for the printing of government security documents," Insider Asia said.
Insider Asia's report is published in The Edge Financial Daily and theedgemarkets.com today.