Deekay - you be the judge. The following extract from Note 35 last annual report ...
"The earnings per share is calculated by dividing the profit for the financial year attributable to owners of the parent by the weighted average number of ordinary shares with voting rights in issue during the financial year EXCLUDING treasury shares held by the Company ...
The reason why distributing treasury shares will cause EPS to drop is because EPS = earnings divided by shares issued NET of treasury shares.
When EPS drops, the fairly constant PE relationsip will result in share price to drop. It's just a sacrifice for 1 quarter and then going forward we will enjoy better EPS as well as dividends if the performance is maintained.
The aggressive sharebuyback is good but I think the management should also consider paring down the sizable borrowings as interest rates have increased and the prospect of further increase would make a big dent on the bottomlines.
It'll take sometime before the full impact of EV kicks in. If Petron is impacted, so will PetDag. The Gov maybe shooting itself on the foot with this EV move. The old batteries will present an environmental headache.
In the meantime I hope this paid Board/Management is anticipating the impact and taking steps to adapt to the realities. Are they planning to continue to proudly announce the number of stations they're opening annually? Do they have something up their sleeves as to how to make money the network of stations?
Maybe with the high NTA with a lot not reflecting the current market value, the devious ones may just keep the prices low & then peanuts over and above to takeover/privatise the company (Like what Canone did to Kian Joo).
I was thinking of taking profit as well but it's tempered with the following considerations: a) the impending generous dividend & b) the massive inflation that has eroded our MYR (despite what BNM or Govt says) which makes the Apollo shares cheap in real terms
Since EV is looming, Petron is in danger of becoming extinct and share price extremely low relative to earnings, large dividend payouts would be the best balm for shareholders.
With half-year earnings at 56 per share coupled with previous years cumulative earnings net of dividends, it should be no problem to declare 50 sen dividends. Unfortunately it's dividends are constipated.
TQ Sslee for your astute analysis. 15.6 sen EPS is decent enough. I've come across a host of other companies with pathetic earnings but lofty share price. This big elephant in the room is being ignored
States that do not allow outlets should not get their share of Federal money since they were responsible for reducing gaming revenue or else it amounts to taking gaming taxes from other states. It's haram. The ever wise omnipresent Man up there knows it and they know that he knows it.
The easy part is asking for handouts. The hard part is earning it.
Good results but price not moving up. Investors with USD can pick up shares for a song given the very low exchange rate but still choose not to.
The only way to spice it up a bit is to surprise us with an increase in dividends. Come on board! It's not going to cause a liquidity crisis at the company. In fact it'll win the hearts of the share holders and teach a "padan muka" lesson to those who stayed on the sidelines.
hng33 - that's very clever of you! I'm an accountant myself albeit a half-baked but a skeptical one.
Based on your calculation, I checked against the corresponding figure of 350 Peso for 31 Mar 2022 results & it corresponded with the published results of Mar 2022. Kudos! Now waiting with much anxiety our actual quarterly results.
Reading the recent comments, there are great expectations. I hope will not be met by great disappointment. Oddly though, it does not reflect in the share price which is trading in one of the lowest PE in the market.