Supermax has a dividend payout policy of 30% in a financial year, so far they have paid a total of 5.3sen in current financial year which translates to 7.4% payout ratio. So it is safe to assume and expect the next dividend to be higher to achieve a dividend payout ratio of 30% in this financial year.
The profit margin will sure eventually drop back to a reasonable level.
Therefore, We should not use the current EPS and say the PE ratio is cheap, we should not also use the future EPS and say the PE ratio is too high because we should consider the extra profit earned during the very good timenow.
So in my opinion, we should use discounted model which capture both.
My comment apart of the two points you mentioned in the increased of operating expenses are:- 1)Sharp increase in raw material costs 2)Higher staff costs such as Covid-19 related expenses, OT and year end bonuses 3)Increasing in exporting cost mainly due to 3-5 fold of freight charges particular for owned oversea distribution centers.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by gemfinder > 2021-02-01 19:01 | Report Abuse
Y all use donations as an excuse? Is it a new norm in malaysia?