Taliworks Corp Bhd has been attracting investors’ interest of late. After trading sideways for the past month, the counter shot up to close at its all-time high of 90 sen recently, supported by high trading volume.

Based on technical readings, the counter’s near-term outlook looks positive. Follow-through buying may lift prices to test 90.5 sen and 94.5 sen. A move to test the RM1.00 psychological level may follow if both the resistances are taken out. Taliworks hit a low of 78 sen in September last year.

The public utility group is favoured for its attractive dividend yield. It had a historical dividend yield of about 7.5%. The group declared a third interim dividend of 1.65 sen per share for the financial year ended Sept 30, 2023, raising its year-to-date dividend to 4.95 sen per share.

If 1.65 sen quarterly dividend is repeated in 3QFY23, that's 6.6 sen per year. Divide 6.6 sen by 80 sen = 8.25% dividend yield but if the share price continues to trend higher, the yield will be lower. Dividend payments will be supported by its net cash from operations of RM66.7 million, which was a major improvement from last year’s figures.

Fundamentally, the company looks strong. Taliworks’ net profit rose to RM13.54 million in 3QFY2023 from RM12.51 million a year earlier, thanks to a higher share of results from jointly controlled entity Grand Sepadu (NK) Sdn Bhd on the back of a toll compensation.

It was however affected by higher repair and maintenance expenses, write-back in over-provision for heavy repairs recognised in prior years, and over-provisioning of acquisition expenses by the renewable energy (RE) segment during the corresponding quarter.

Revenue fell to RM90.74 million from RM91.28 million in 3QFY2022, due to lower revenue from the construction and water treatment and supply segments. 

For the nine months just ended, Taliworks’ net profit rose 3.71% to RM35.4 million from RM34.14 million while revenuevwas 8.51% higher to RM273.3 million from RM251.86 million. This was attributed to higher contribution from all operating subsidiaries, except for the construction segment.

Moving forward, its Sungai Selangor Water Treatment Plant Phase 1 water operations and the toll division will continue to be its main drivers while exploring opportunities in the RE space.

Attractive dividend yields and strong financial results are ingredients for further upside in share price, drawing investors’ interest in the counter.