Stay calm. The Kenanga report reduced the TP but also widened the RNAV discount from 61% to 65%. If you ask me, that just seems too conservative also. Dividend payout, once confirmed to be raised to 40% from 30% is also another upside. Lastly, people forget that the investment income contribution to KSL vs other players is higher and therefore in this environment of uncertainty provides good buffer!
Dividend policy on the way. In the briefing, management reassured that they are formalising a dividend policy which is still pending approval from the board members. Management indicated that they would be paying out at least 40.0% of its net profit in the upcoming dividend payout. However, we continue to assume a dividend payout ratio of 30% for now until the formal announcement is made. At 30.0% payout ratio, we would be expecting a net dividend of 10.0 sen for FY15 implying a net yield of 4.7%.
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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....
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