Sslee blog
HENGYUAN: 50 Notices of Requisition needed to move and vote on proposed resolutions at the upcoming AGM.
Dear Hengyuan Shareholders,
I need at least another 47 shareholders (I and my family members can contribute 3 notices of requisition) to send in the below official notice of requisition to Surya Suharman:
- Copy the below standard requisition form and paste it into your Microsoft Office Work. Refer Appendix B.
- Please type in the date, your name and IC number in the standard requisition form.
- Print out the Microsoft Office work file and put/handwritten your signature.
- Photo-copy your signed copy with your IC place below signature.
- Scan the photocopy using scanner into Scan pdf file.
- Then wrote in the following email and attach the scanned pdf as attachment. Refer Appendix A.
- Send to below email : HRCPD-Corporate-Affairs@hrc.com.my
Note: If you have more than one shareholder member in your family and would like to send in joint notice of requisition. You can replace in the standard requisition form: I change to We, _Name 1___ Malaysia Identity Card Number: _______ and _Name2__ Malaysia Identity Card Number: _________. At the end of letter Signature change to Singnature1:___________. Singnature2:______________. Then put the respective IC card below the signature and make photocopy.
I always believe facts and figures can only be found with the people running the company. Let’s us comb through the Annual Financial Report, prepare the questions, attend the AGM, get to know the BOD and management team, ask as many questions to find out the facts and figures and debate with them the need of reasonable dividend. Please send in your Notice of Requisition this weekend and I will follow up with Ms. Gene weekly as of numbers of shareholder Notice of Requisition received. I thank you.
Appendix A:
Subject: NOTICE OF REQUISITION
Dear Surya Suharman
Corporate Affairs Department
Email: HRCPD-Corporate-Affairs@hrc.com.my
Please find the attached file in the attachment:
Scan copy of signed official notice of requisition with IC card below signature in pdf.
Please kindly acknowledge received of my official notice of requisition by an acknowledgment return email.
Thank you
Yours Sincerely,
Name:
Appendix B:
The standard official requisition form as below:
Date: _______________
Hengyuan Refining Company Berhad.
{Formerly known as Shell Refining Company (Federal of Malaysia) Berhad} (Company No: 3926-U)
Board of Directors,
Batu 1, Jalan Pantai,
71000 Prot Dickson, Negeri Sembilan, Malaysia.
Tel: 06-6471311.
COMPANY SECRETARIES
Lim Hooi Mooi (MAICSA No. 0799764)
Ong Wai Leng (MAICSA No. 7065544)
Dear Sir/Madam,
REQUISITION TO MOVE AND VOTE ON RESOLUTIONS REQUIRING SPECIAL NOTICE UNDER SECTION 322 OF THE COMPANIES ACT 2016 AT THE 59TH HENGYUAN AGM
I, ____________ Malaysia Identity Card Number: __________ holder of HENGYUAN share (Co-requisitors of no less than 50 voting members) hereby give notice of at least twenty-eight (28) days before the 59th HENGYUAN AGM under Section 322 of the Companies Act 2016 to move the below resolutions under Section 323 (2)(b) {at least fifty members who have a relevant right to vote and hold share in the company on which there has been paid up an average sum, per member, of at least five hundred ringgit} at the 59th HENGYUAN AGM and to vote (FOR/AGAINST) the resolutions with or without modification:
1. To approve a final single tier dividend of 43.5 cents per share in respect of the financial year end 31 December 2017.
2. To approve a formal dividend policy of at least allocating 15% of the Company’s profit after tax, excluding exceptional items will be distributed to its shareholders as dividend payment.
Please circulate to HENGYUAN Shareholders of such notices of Resolutions in the same manner and at the same time as it gives notices of the 59th HENGYUAN AGM. (Section 322 (3) or Section 323 (2))
Yours Sincerely,
Signature: _______________
Identity Card
Appendix C: Email from Surya Suharman Corporate Affairs Department and my replied.
<HRCPD-Corporate-Affairs@hrc.com.my>
To: Soon Sheng Lee
Mar 19 at 3:14 PM
Dear Mr. Lee,
Hengyuan Refining Company Berhad (the “Company”) would like to thank you for your e-mails and your support.
In 2017, our Company enjoyed strong refining margins in Q3 as a result of higher fuel prices due to refinery outages in the United States caused by Hurricane Harvey, and the fire which disrupted Shell’s Pernis refinery in the Netherlands, the largest crude-oil refinery in Europe. Both events were unforeseen and exceptional in nature.
In the coming years, the Company will require significant capital investments to stay competitive and to comply with regulatory requirements in respect of Euro 4 and Euro 5 specifications and clean air regulations. Further, the Company will be undertaking a cyclical statutory turnaround in August 2018.
Taking into consideration these factors, the Board performed a solvency test in line with the requirements of the Companies Act 2016 and approved an interim dividend of RM0.02 per share. The Board will continue to be committed to the implementation of good corporate governance, consistently improving profitability, maintaining stability and enhancing the performance of the company, to build long-term shareholder value.
Should you wish to include a motion at the upcoming Annual General Meeting, please take note of the steps below.
Pursuant to Section 323 of the Companies Act, a motion may be requisitioned by shareholders if it is requisitioned by:
(i) members representing 2.5% of the paid-up capital with voting rights; or
(ii) at least 50 members with the right of vote, where the average paid-up sum for each member exceeds RM500 per member.
The requisition needs to be made in hard copy or electronic form. Should you wish to send us the form by e-mail, you will need to send us a scanned copy of the signed form, together with a copy of your identity card / passport number. The other 49 shareholders must also do the same and the text of the requisite resolution must not differ from yours.
All 50 notices must be sent to the Company at least 28 days before the Annual General Meeting.
Thank you very much.
Sincerely,
Surya Suharman
Corporate Affairs Department
My replied:
Dear Surya Suharman,
Corporate Affairs Department
Thank you for your reply and your advice on the legal requirement for the notice of Requisition.
I will post the below request at i3investor blog to mobilize at least 50 shareholders to send in the standard formatted requisition form.
Please advice is this OK to you?
By the way may I ask do I have the understanding or blessing from the BOD to make this requisition of formal dividend policy and final dividend of RM 43.5 cents?
Thank you. Your quick response will be appreciated.
Best Regards
Lee Soon Sheng
Received WhatsApp message from Ms. Gene; from my own personal perspective, the board cannot “bless” your request as they have decided on a dividend, but they respect your right to request for a motion. I WhatsApp back; the board only recommend interim dividend this leave room for a final dividend. My hope
Yesterday I make another WhatsApp; Dear Gene, Hengyuan AGM most likely will be held in May. AGM meeting circulations send out in April. With 28days advance notice most likely I have only 4 weeks to gather 50 shareholders support. I will ask my family members to send in the notice of Requisition this week end and will post my SOS 50 Hengyuan shareholders needed this Friday night. Hope you will give me your support and understanding that what I intend to do is for the good of all shareholders. Thank you.
Ms. Gene WhatsApp replied; Have to verify your shareholder etc etc .
Appendix D: My email to Ms. Gene (Hengyuan Legal Dept) who is kind to call me to discuss on legality of my first email notice of requisition.
Dear Gene,
For far too long many listed companies in Bursa where the major shareholder with the control of the board had been short-charging the minority shareholders with a very unreasonable minimum dividend and because of that the share price is trading at a very low PE. I believe with a formal dividend policy market will welcome and appreciate such a move and will reward Hengyuan with a better share price, a win-win initiative that will benefit the major shareholder and minority shareholders. This is the reason why I proposed a formal dividend policy.
I understand that the new Companies Act 2016 (section 132) has placed great burden on the directors of the company to ensure that dividends could only be distributed out of the profit of the company and that the company is solvent within 12 months of the payment of the dividends. Any improper or unlawful distribution shall, on conviction subject the directors to a penalty of not exceeding 5 years imprisonment or up to RM3 million in fine or both. I had mention previously with 2017 EPS of RM 303.07 cents and the board only declares an interim dividend of RM 2 cents. This is view negatively by market with disdain bordered on insulting and absurdity thus causing market price to nose dive to year inter-day low of RM 8.24 on 7-3-2018.
PETRONM: Major shareholder Petron Corporation Philippines. Financial year end Dec 2017: EPS RM 150.10 cents, NTA RM 5.56 dividend RM 25 cents a 16.6 % of EPS.
HENGYUAN: Major share holder Shandong Hengyuan Petrochemical Group Company Limited. Financial year end Dec 2017: EPS RM 303.07 cents, NTA RM 5.90 dividend RM 2 cents 0.66 % of EPS. Is this a reasonable dividend?
My proposed final dividend of RM43.5 cents, a total dividend for the year of RM 45.5 cents is 15% of EPS. I understand that Henyuan and Petronm need CAPEX to upgrade their plant and for future expansion thus the need to reserve earning unlike PETDAG EPS RM 155 cents, NTA 6.04, Dividend RM 97 cents a payout of 62.5% EPS.
I am prepared to listen to the board what is affordable dividend for financial year end 2017? As a saving grace please does not tell me RM 2 cents is what Hengyuan can afford. My final request perhaps the board can consider rewarding the shareholders with share split, bonus share, and free warrant and also please reward the employees with good performance bonus or even ESOS. I thank you.
I believe the Companies Act 2016 Section 323 (2) (b) {at least fifty members who have a relevant right to vote and hold share in the company on which there has been paid up an average sum, per member, of at least five hundred ringgit} is mean to encourage minority shareholders to exercise their right to put forward their reasonable requests/resolutions to be debated at the AGM. I shall exercise such right by posting the prepared requisition form in i3 investor forum and urge at least 50 Hengyuan shareholders to send in the requisitions. Please informed me which email address to send to and when is the last day to send in the requisition?
I do not mean any disrespect to the board by my requisition as I believe my proposed resolutions are reasonable and for common good of all Hengyuan shareholders. I do understand that my proposed resolutions even if it made its way to voting at the AGM the major shareholder still can vote against the resolution. In that case I can only claim a moral victory for those oppressed minority shareholders. A not good enough outcome for me hence I am prepared to listen to the board what is for the good of shareholders and company. I am a reasonable man and prepare to give and take (give more than you take/give thanks and take nothing for granted).
Hope to hear some good news from the board.
Thank you
Yours Sincerely,
Lee Soon Sheng
Appendix E: My first email to Corporate Affairs (Censored my IC last 4 digit number)
Dear IR Contact:
SuryaSuhaman (Head of Corporate Affairs)
HRCPD-Corporate-Affairs@hrc.com.my
Please forward this email to Board of Directors and Company Secretaries. Please acknowledge the received of this email and if you have any further questions on the requisition feel free to email me.
Dear Board of Directors: Mr. Wang YouDe, Mr. David Ronald keat, Dato’ Sri Talaat bin Haji Husain, Datuk Yvonne Chia, Datuk Zianun Aishah binti Ahmad, Mr. Heng Heyok Chiang, Mr. David Lau Nai Pek, Mr. Wong Zong Quan and Mr. Sun Jian Yun,
First of all let me express my thanks and gratitude to the BOD and Management team of Hengyuan for making more profit financial year end Dec 2017 with EPS of RM 303.07 cents compare to financial year end Dec 2016 with EPS of RM 111.76 cents and gave an interim dividend of RM 2 cents. Thank you very much.
Hengyuan Refining Company Berhad was wrongly perceived by many as RED CHIP companies. Low PE, a lot of Cash but never pay dividend. (Example: Maxwell, CSL, Xingquan, Msport and etc with accounting fraud and fake bank balance) thus it was a welcome move from the major shareholder of Hengyuan, Shandong Hengyuan Petrochemical Group Company Limited to declare an interim dividend. However I need to say market react to this mere 2 cents interim dividend with disdain. Chinese saying when giving gift, it had to be appropriate. So what is appropriate sum? My advice is to make reference to a similar Petroleum refinery Petronm major shareholder Petron Corporation Philippines. Financial year end Dec 2017 EPS RM 150.10 cents dividend RM 25 cents a 16.6 % of EPS.
Thus with full respect to the BOD, I had make a requisition to move and vote on my proposed resolutions of a formal dividend policy of 15% of EPS and a final dividend for financial year end 2017 of 43.5 cents. With a formal dividend policy I am sure investing public will view Hengyuan as a must have BLUE CHIP company and not the SCAMMER RED CHIP company.
Thank you
Yours Sincerely,
Lee Soon Sheng
PS: The China Securities Regulatory Commission Chairman Liu Shiyu's Speech at the 2nd Assembly of CAPCO Members' Representatives
Thirdly, commitment to cash dividends: Paying cash dividends is the primary way to return wealth to investors, the underlying duty of a joint-stock corporation, and the source of a stock's intrinsic value. Investing in stocks is said to have eyes on the future. As long as a company has growth potentials, its stock price will rise and bring returns to its shareholders, regardless of paying dividends or not. This notion is only partially right. But the returns here are not profits generated by the issuing companies but gains from trading at premium. If a listed company never offers cash dividends, trading of its stocks is nothing but a speculative rolling game, the one like passing flowers until the drum beat stops, not to mention the uncertainties in a company's growth. A company who chooses not to pay dividends but to expand blindly by taking on new project may fail to pay in the future when these projects go south.
Listed companies are allowed to withhold dividend payments if it is for long-term considerations and with approval by the shareholders' meeting. However, indefinite and unjustified withholding is not acceptable. In international practices, steady and stable cash dividend payout often signals financial health and operational soundness of a listed company. In other words, sustained failure to pay dividends for no reason could be signals of accounting fraud or internal mismanagement. There are listed companies who generously pay out dividends. We commend the practice. However, there are also "iron roosters" who haven't plucked a single feature for many years. The China Securities Regulatory Commission (CSRC) has been noted of this problem. We won't fail to ensure accountability and will respond with firm measures as warranted.
http://www.csrc.gov.cn/pub/newsite/zjhxwfb/xwdd/201704/t20170408_314862.html.
http://www.csrc.gov.cn/pub/csrc_en/informations/phgall/201706/t20170608_318016.html.
Notice of Requisition:
Hengyuan Refining Company Berhad
{Formerly known as Shell Refining Company (Federal of Malaysia) Berhad} (Company No: 3926-U)
Board of Directors,
Batu 1, Jalan Pantai,
71000 Prot Dickson, Negeri Sembilan, Malaysia.
Tel: 06-6471311.
Fax: 06-6474622.
COMPANY SECRETARIES
Lim Hooi Mooi (MAICSA No. 0799764)
Ong Wai Leng (MAICSA No. 7065544)
Dear Sir/Madam
REQUISITION TO TABLE AND VOTE ON RESOLUTIONS REQUIRING SPECIAL NOTICE UNDER SECTION 322 OF THE COMPANIES ACT 2016 AT THE 59TH HENGYUAN AGM
I, LEE SOON SHENG Malaysia IC NO: 610923-02-XXXX holder of HENGYUAN share as of dated 5-3-2018 hereby give notice of at least twenty-eight (28) days before the 59th HENGYUAN AGM under Section 322 of the Companies Act 2016 to move the below resolutions by seeking at least 50 members approval by show of hand under Section 323 (2)(b) {at least fifty members who have a relevant right to vote and hold share in the company on which there has been paid up an average sum, per member, of at least five hundred ringgit} at the 59th HENGYUAN AGM. And if not less than 50 Members Approval is obtained proceeds to vote (FOR/AGAINST) the resolutions with or without modification:
- To approve a final single tier dividend of 43.5 cents per share in respect of the financial year end 31 December 2017.
- To approve a formal dividend policy of at least allocating 15% of the Company’s profit after tax, excluding exceptional items will be distributed to its shareholders as dividend payment.
Please circulate to HENGYUAN Shareholders of such notices of Resolutions in the same manner and at the same time as it gives notices of the 59th HENGYUAN AGM. (Section 322 (3) or Section 323 (2))
Requisitor:
LEE SOON SHENG
5-3-1018
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Discussions
4 people like this. Showing 50 of 62 comments
At last there is 1 good man in i3.
Cheers, good action taken by dear Sslee.
2018-03-24 03:59
If still believe in Red Chips like HRC why not go for cheaper 1? Eg Xinghe only 6 sen.
2018-03-24 04:28
Now you know, all negative comment given to Sslee is a con man and trader, these guys will not support you but bs.
2018-03-24 06:02
Actually i had one more suggestion... suggest HRC to open themselves up to analyst. They have been avoiding analyst for 2 years.
2018-03-24 06:34
Whatever the outcome of your challenge to the board, I applaud your effort to keep them on their toes.
2018-03-24 07:16
Dear Hengyuan Shareholders,
Good morning, a gentle reminder. Please look into the below blog and spare some of your valuable time this weekend to prepare and send in your Notice of Requisition. I thank you
https://klse.i3investor.com/blogs/Sslee_blog/151687.jsp
Dear ks55, pussycats, 3iii and all the naysayer.
Thank for your comments, I choose to attend the AGM and to voice out all your concerns with the BOD and the auditor. Please let me know if you have any other concerns or perhaps you would like to invite yourself to the AGM by buying 1 lot of Hengyuan share and ask the BOD and Auditor directly yourself. I thank you.
Dear Sadist,
I can only offer you the following advice:
Some live in the past: Anger, arrogant, guilt, regret, resentment, grievance, sadness, bitterness, pain, hate and all forms of non-forgiveness.
Some live in the future: Hope, expectation, unease, anxiety, tension, stress, worry and all forms of fear.
So please set yourself free from the burden of the past and the expectation of the future. Live in the present. “THE NOW”
Accept what you are now with no judgment. Acceptance does not mean give in or give up, it simply mean be aware and conscience of what you are NOW and take control of it. Act now. Free yourself from the negative emotion of the unconscious past (Anger, arrogant, guilt, regret, resentment, self pity, sadness, bitterness, pain, hate and all forms of non-forgiveness) and feel the positive energy flowing through your body (Courage, passion, compassion, determination, strength, joy, calmness and peace of mind) aware and conscious of what you are now, take appropriate action to change your life for the better. Plan and focus on what you can do now, a step at a time, a word at a time. Any action you take now may not bear fruit immediately but if you focus on each step you take now the future will take care of itself.
Never believe that you are fated to be a born loser. If you act now you are controlling your own destiny but if you let yourself to be influenced by your past failure/anger/bitterness/pain/hate/resentment/regret/self pity and fear of the un-known future that nothing can be done for the better then you are destining to be a failure.
I seek not to conquer other but to conquer my own self of the past anger/bitterness/pain/hate/grievance/arrogant/resentment and future worry/anxiety/stress/fear/unease. I choose to live in “THE NOW”. So can you.
Thank you
2018-03-24 07:25
Dear TheContrarian,
Yes we can do the same for INSAS.
If fact you can prepare an EGM requisition to appoint yourself as independent director and ask minority shareholders to sign up your requisition at the AGM. If not less than 10% paid up capital signed up and verified by the vote tally auditor present during the AGM you can hand over your EGM Requisition to the Company secretary and BOD present. The BOD will have to call an EGM within certain time-frame for shareholders to vote on your requisition.
Thank you
2018-03-24 07:42
Great effort but in my opinion, unnecessary, unless you really have to become an activist because a big chunk of your wealth sits inside HY.
1. How can someone exactly know the dividend is the crux of the problem that cause the share price to nose dive? No doubt, there will be those that sell because they expect higher dividend but what is the % of those shareholders that contribute to the fall? 0.1%, 2%, 50%? No one knows. There can just as many other reasons that cause the fall. Or no reason at all. If HY declares the same dividend and the share price stays at RM15, would this letter be written? Most likely not. Because it is the share price movement, the almost 50% fall since the dividend date, that trigger this action, not because of the dividend itself. As a thought experiment, if HY declare 2 cents div, and the share price shoot up above RM20, many would come out and praise how 'generous' HY is. This requisition won't be written. I write this to emphasize the dividend is not the real issue, the real issue is people look at the share price everyday that creates panic in themselves. Share price is the cause, not the dividend
2. This is more on creating value and dividend itself. No doubt, dividend has been a main source that contribute to a big chunk of stock market return over past 100 years, not just the increase in share price. But given that if what all the predictions and countless articles written on HY is true, that HY is going to generate upward 40% return on capital. My stand will be opposite from you, I would 'sue' them for paying that 2 cents. Because they should reinvest everything back into the business. I can't and no one can find a 40% roc business out there, paying out dividend essentially lower my long-term return. Because all I can is take those dividend and invest in a 15% ROC business, worse, lower than 10%. So why should all these people that is confident of a business generating 40% ROC get so concern that HY is paying a pittance of dividend?
2018-03-24 08:17
I prefer share price Rm8.24 (50% Strong FIBO support) instead of few cents div
2018-03-24 08:21
@ Ricky Yeo, why pour cold water over this suggestion. What is your agenda? Is it wrong to ask for more dividend? For shareholders of HY, we welcome the efforts of SSlee. You, I and no one else know the outcome. So let's wait for the outcome.
2018-03-24 10:53
Thanks for this info. Something new to learn today. Share price of worldwide bourses has been volatile as a result of US president action. Inflation fear and trade war between US and China have impacted sentiment lately and it is natural to expect share price decline not just Hengyuan but other bluechip. Hengyuan is an Excellent company but BOD interst is not allign to shareholders interest ie small divident In summary, share investment is not easy. Decide if you want to be with this company or find other better company . My two cents
2018-03-24 10:53
Mr Ricky Yeo, fully agreed with your take on the dividend. Mr. Lee, if you want dividend as an income then probably HY is not for you. As a business man, I would not pay dividend as the business need upgrade and these upgrades (Euro4 & 5) is not cheap, and in addition fraught with all kind of risks - implementation risk, DT (Donald Trump) risk, financial risk, interest rate risk, etc. And the China investor is no difference from Shell and no superman as some make them out to be.
2018-03-24 10:59
Now 7.8 still dreaming of RM 42? Maybe RM 4.2 will come next mth.
Posted by lizi > Mar 24, 2018 08:18 AM | Report Abuse
I prefer share price rm42 instead of dividend.
2018-03-24 11:11
Share Price=7.8
NTA=5.9
PE=2.57
ROE=51.34
Looks so attractive, but DY~0,
If a company earn big money but just pay little dividend (or almost nothing), then this stock is just a money game and what investor holding now is only a roll of toilet paper.
So, I will not surprise if it's drop to PE=1 (share price=3.03)
2018-03-24 12:02
Don't hold on to HYR.
Don't wait to attend AGM.
Donald Trump tsunami is now here.
Very likely there will be a Black Monday for World Market.
Equally probable another Black Tuesday for World Market ex NYSE if DJ can hold on Tuesday's trading.
To hold on to HYR will probably see you fortune halved by the end of Tuesday trading......
2018-03-24 12:32
expected value of the exercise, zero
expected cost incurred , insignificant.
zero vs insignificant
2018-03-24 12:39
Thanks SSLee. Very educational. Klse needs activist to shake the uncaring Bod of listed cos.
2018-03-24 13:50
Dear Ricky Yeo, teoct and drangonslayer,
Thank for dropping by and gave your comment and opinion. Yes different people have different taste and liking this makes this world more colorful and challenging. I can only offer you the speech by China Securities Regulatory Commission Chairman Liu Shiyu's at the 2nd Assembly of CAPCO Members' Representatives on the important of dividend.
http://www.csrc.gov.cn/pub/newsite/zjhxwfb/xwdd/201704/t20170408_314862.html.
http://www.csrc.gov.cn/pub/csrc_en/informations/phgall/201706/t20170608_318016.html.
By the way I am only a small part-time investor and Hengyuan only constituent less than 10% of my portfolio. (I sold Bplant and bought Hengyuan recently) INSAS is my biggest holding now. I am near my retirement age and as I grow older, I feel an inner calling inside me to serve Malaysia in whatever way I can and help to bring about social wellbeing/justices to all. Thus when I have free time, I attend AGM to get to know people, find out the true facts and figures from the people running the company and if I sense red flag of fraudulent, I will follow up with Auditor, independent director, Bursa and SC.
INSAS director told me during the AGM why not invest in INNARI (Dividend stock) instead of INSAS (Growth stock)? I beg to differ why can’t INSAS be growth stock and at the same time a dividend stock?
Yes during Bear market or downturn all shares will drop like no tomorrow because of fear factor, margin call and TA practitioners cut loss as their TA chart had triggered the cut loss set limit. (They are absolute right to cut loss and wait sideline to reenter when the TA chart tell them to do so.)
Dear Ricky Yeo, you are most welcome to ‘sue’ Hengyuan for paying 2 cents interim dividend because they should reinvest everything back into the business. Please ‘sue’ NESTLE too for giving so much dividend because if they had reinvested everything back to expense into upstream Palm oil plantation, Cocoa plantation, Sugar plantation, Palm oil refinery, Specialty fat, Cocoa crashing and refining, Sugar refining, cow farming and milk harvesting and etc, NESTLE today share price should be in the thousand instead of RM 150. I thank you
Dear all,
I had to admit that I have yet to read any of the investment books often quote by investment Sifus in i3 investor or attended any FA or TA training course. I will take up some of the courses after I had retired from my full time job as I feel guilty if I attend such course when I am still holding a full time job.
I had taken leaves and attended some AGM and the last one is INSAS AGM where I prepared 5 pages question, group under 3 subjects:
Subject 1: Financial report and Business outlook
Subject 2: Dividend
Subject 3: Share market price
I gave a hard copy to the BOD and spend hours questioning, arguing, reasoning, appealing and bagging for a better dividend to no avail. I learnt some lessons from that experience and felt BOD will most likely listen to the minority shareholders demand if the request for better dividend is by Official Notices of Requisition to move and vote on the proposed resolutions. (So please send in your Notices of Requisition, you only need to hold 1 lot to qualify as voting member)
Please do not take my intended action as a recommendation of a buy call or a hold call as I am definitely not qualified to make such call. You have to decide for yourself what to do with your holding. As for me I will attend the AGM, get to know the BOD and management team, ask as many questions to find out more about the major shareholder, management system, plant capability, financial standing, future expansion, cash-flow, business outlook, corporate governance and etc.
Thank you.
2018-03-24 14:32
@Sslee I don't disagree with what you are doing. I just think there other better things you can do in this scenario, but that's just me. And to clarify:
1. Depends on your definition of growth, like what constitute growth? Anything above o%, 10%, or 20%? To put something in context, I assume growth is defined as anything as above 10%, and a dividend stock as something that has a return yield of above 7%. That essentially mean you need a return on capital of 17% to do both. How many stocks in the universe consistently achieve more than that? not many. If Insas and HY can go more than that, they can be growth and dividend at the same time.
2. On Nestle. Why should I sue Nestle? They got a high payout ratio because they lack reinvestment opportunities. I would sue them if they invest in those businesses you just mentioned, because those biz would lower their return in the long-term. Nestle don't maintain their high ROC by investing in those 'commodity', but because they stick to what they know best. In contrary, investing in those biz will result in lower share price than what it is right now.
This goes to the core of your argument. Your argument is that fat dividend means higher share price, but that's only half true. Companies can have zero dividend yet with high share price, think Berkshire Hathaway. You probably prefer dividend because you are near retirement age, that's a valid point. But everything goes back to the future ROC of HY. Dividend is only a byproduct of quality business. It would be better to question the strength of HY than questioning when they'll be paying div.
2018-03-24 15:23
That's why a company that doesn't require much in capex over the long-term is better than one that require high capex. Capex light business can either reinvest or distribute earnings to shareholders while continue to earn a high ROC. Nestle share price continue to go up not because they can pay alot dividend, but because they earn a high ROC. It is high ROC that makes them valuable, not the dividend itself. But high ROC does enable long-term dividend growth.
HY can pay you a fat dividend but if the business is so competitive that ROC eventually come down, no amount of dividend can support the share price. Don't take my word for it. Look at Hengyuan from 2008-2012 when they are still Shell. The payout ratio is 50-100%, sometimes even more. Given such a generous dividend payout, share price should go up according to your assumption. But it didn't, the price stays flat all those year. When Shell decided to stop the dividend, given the poor/negative ROC, thus inability to sustain of such dividend payout, the share price moved downwards. That's why my opinion is understand the business earning power, that matters more than the dividend policy.
2018-03-24 15:52
@Ricky Yeo sorry,digress a bit..
any good dividend stk tht meet close to your 7% yield target ? (apart fm magnum, Bjtoto,digi, telcos,maybank and exclude reits) thank you in advance.
2018-03-24 20:02
To all newbie, you are lucky my flight to Frankfurt is delayed so let me give more info, don't listen to sifu here, all got own agenda...I hav been giving out warning on Iwc , Jaks, csl on many occasions. Hengyuan is a very small company in China, may be top 30000 also not in the list ! May b top 1000 in shangdong, it has a very small out of date refinery in shangdong, about 1/3 the size of shell PD ! Dutch Shell had helped them to produce euro 5 diesel, later they request shell to transfer the know how to produce the euro 5 but their refinery is not easy to upgrade, instead Dutch offer them to take over PD shell with condition shell will transfer the euro 5 know how.........later you will see the huge transfer of euro 5 technology from shell to henguan costing billions of ringget ...euro 5 technology only few EEC countries can produce... even US can't match them !
2018-03-24 20:33
Dividend no good lar...better propose a dividend reinvestment plan.... or best is give bonus share one for one...hahahaha.....
2018-03-25 11:42
868 in Aug 2017 was std 6
Excelled super high speed well to
1920 at pre-U.
Rightfully a true blue FA stock must not n never ever went down below 868.
Last Fri closed at 780, i.e. failed miserably n demoted to std 5.
Now technically a # 1 LAUGHING STOCK.
If till end of next week, there's no recovery, be prepared for the worst.
AWAS: knm returns, knm read in chinese
2018-03-25 12:33
1. To approve a final single tier dividend of 43.5 cents per share in respect of the financial year end 31 December 2017
SsLee.....the accounts for 2017 already finalised already.
2018-03-26 03:31
SsLee.....the accounts for 2017 already finalised already...or at least by the time of the AGM
2018-03-26 03:33
Dear qqq3,
Base on previous year BURSA company announcement recorded.
1. Q4 2016 announce on 28 Feb 2017.
2. Notice of AGM announce on 27 April 2017.
3. Audited Annual Report-2016 announce on 28 April 2017.
4. General Meetings: Outcome of Meeting announce 24 May 2017.
Thank you.
2018-03-26 08:30
MR. SS LEE taken Good action Thanks a lot.... not like other -ve people who just talk only without facts back-up just ignore them. Please 4 those who don't contribute info/facts in any forum & want 2 seek attention is better go 2 political site or at least do good to society!!!!!
2018-03-26 12:50
To approve a final single tier dividend of 43.5 cents per share in respect of the financial year end 31 December 2017.
the 59th HENGYUAN AGM and to vote (FOR/AGAINST) the resolutions with or without modification:
============================================================
cannot be done
by then audited for the year already signed.
in any case 2 sen dividend already gone ex.
u need to choose your fight
2018-03-26 15:40
Anyone know when d IB sell their share holdings after c.warrant expired?
Will These affect share price ?
Thanks.
2018-03-26 17:22
Dear qqq3,
The 2 cent dividend already ex is interim dividend. Final dividend needs shareholders approval at AGM.
If approval obtained then BOD will decide on ex and payment date. This final dividend has no effect on Audited 2017 financial report but had to be account for in 2018 financial report. My understanding can be wrong but my intention is not fighting anyone but to encourage minority shareholders to exercise their right to put forward their reasonable requests/resolutions to be debated at the AGM. If this requisition is successful going into voting stage then a precedent is set and such move can be apply onto any listed companies. Hopefully what we intend to do in Hengyuan will resonate into a major activism movement where minority shareholders right can no more be ignored by major shareholder that controlled the board anymore.
I am now preparing questions I would like to bring up during the incoming AGM and one of the questions is: Will the board consider rewarding the shareholders with share split, bonus share, and free warrant?
Anyhow your advice and point taken
Thank you.
2018-03-26 21:13
Bonus share bagus. Sekarang manyak volatile. tapi selepas bonus share, dividend juga turun per share. may be 3 shares kasi 1 free shares.
2018-03-27 06:33
Sslee, your director list is wrong, half of them (the reputable ones) already resigned.
You address the wrong persons, how can they support your resolution? Haha!
The only one person in the board i trust is the KIWI. If he resigns, it will go down to 50c.
You need a lot of luck to win money in Bursa. So, good luck!
2018-03-31 10:38
by Sslee > Mar 26, 2018 09:13 PM | Report Abuse
Dear qqq3,
The 2 cent dividend already ex is interim dividend. Final dividend needs shareholders approval at AGM.
If approval obtained then BOD will decide on ex and payment date. This final dividend has no effect on Audited 2017 financial report but had to be account for in 2018 financial report
==============
well, final dividend for FY 2017 have to be incorporated in the audited accounts for FY 2017....in the form of a provision.
2018-03-31 10:55
Do it first thing on Monday morning at your office if you do not have a printer with scanner.
2018-03-31 12:46
Mr SS Lee, me and family will surely support a better dividend policy for HengYuan.
Btw, please may i know how do you derive 43.5 sen?
2018-04-02 14:36
I have received their email of acknowledgement .
Your e-mail is received.
Thank you for your continuous support of the Company.
Regards,
HRC Corporate Affairs Team
2018-04-02 20:26
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SSlee, Good Job. I support you.
2018-03-23 22:11