Posted by loribalak > 6 days ago | Report Abuse

In the past, the dividend reinvestment (i.e. dividend is paid via issuance of new shares instead of cash) has always be at about 10% discount on the average closing price.

So let's say you are entitled to dividend of RM100. So if you opt for cash dividend, you get RM100 cash.

Let's assume the average closing price of the shares for the past 5 trading days is RM2, then apply 10% discount. That gives you a share price of RM1.80 per share. So if you go for the dividend reinvestment, you will get RM100/RM1.80 in shares, i.e. approx 55 shares. So if the share price remains at RM2, then you can sell the 55 shares for RM110!

Why do banks (e.g. Maybank etc) do this? Simple reason... they need capital for their lending business. So if they pay out cash, there is less capital for them to lend.

Posted by TheContrarian > 6 days ago | Report Abuse

For people who doesn't know, Sumitomo Mitsui Banking Corporation of Japan is 2nd largest shareholder in Affin, holding indirectly over 23% equity.

Posted by TheContrarian > 6 days ago | Report Abuse

Sumitomo Mitsui Banking Corporation is the 2nd largest banking group in Japan and the 80th largest company in the World.

Posted by TheContrarian > 6 days ago | Report Abuse

If LTAT were to ever decide to exit Affin, Sumitomo Mitsui Banking Corporation can easily buy over.

Posted by jeffrey1166 > 6 days ago | Report Abuse

latest tp 2.55 june keep buying today as well me

Posted by TheContrarian > 6 days ago | Report Abuse

Go, go, go Affin.

Posted by TheContrarian > 6 days ago | Report Abuse

12.5 sen dividend confirmed coming.

Posted by jeffrey1166 > 6 days ago | Report Abuse

dividend is mid of june right

Posted by loribalak > 6 days ago | Report Abuse

https://www.theedgemarkets.com/article/affin-bank-optimistic-loan-grow...

Posted by TheContrarian > 6 days ago | Report Abuse

Dividend payment probably around mid to late June.

Posted by Endgame > 5 days ago | Report Abuse

Bila 3? Dah tunggu lama

Posted by loribalak > 5 days ago | Report Abuse

If Affin can maintain 2021 PBT of about RM700 mil going forward, and assuming P/E ratio of 10 (most other banks about this size has PE ratio of about 10-14), that would give a rough valuation of RM7b. So price per share should be around RM3.29

Posted by kitmanworld > 5 days ago | Report Abuse

so means the current price of affin is only between RM2.10 to the most at RM2.20 ? Or need wait result from QR in AGM ?

Posted by LouiseS > 2 days ago | Report Abuse

大马九大银行股哪一家最值得投资？
https://youtu.be/Q6Hw0ITlkvQ

Posted by kitmanworld > 2 days ago | Report Abuse

apa tu??

Posted by TheContrarian > 2 days ago | Report Abuse

Tu YouTube.

Posted by kitmanworld > 2 days ago | Report Abuse

Oh, ingatkan scammer link.

Posted by jeffrey1166 > 2 days ago | Report Abuse

keep buying cheap

Posted by kitmanworld > 2 days ago | Report Abuse

Its no longer cheap, just that its not moving up. What do you call this ?

Posted by Markv572421 > 2 days ago | Report Abuse

Steady and up and steady and up ...steady and up again ...then ....fixed at certain price

Posted by TheContrarian > 2 days ago | Report Abuse

EPF could still be selling.

Posted by kitmanworld > 2 days ago | Report Abuse

True, FF could still be selling

Posted by kitmanworld > 2 days ago | Report Abuse

It is cheaper now for entry.

Posted by TheContrarian > 2 days ago | Report Abuse

A bank selling for less than half its net assets value giving a 12.5 sen dividend is very undervalued.

Posted by loribalak > 2 days ago | Report Abuse

@TheContrarian I went in when it was 2.00-2.01

Posted by kitmanworld > 2 days ago | Report Abuse

if make profit dy then exit , else nanti FF kasi lesson sama kita suma

Posted by redhotpepper > 2 days ago | Report Abuse

"NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS) : OTHER ISSUE OF SECURITIES"

The above is for all share holder or it has condition?

Posted by TheContrarian > 1 day ago | Report Abuse

All shareholders entitled to the 12.5 sen dividend is eligible to elect for the dividend reinvestment plan. There is procedure to follow and a payment of RM10 for stamp duties.

Posted by TheContrarian > 1 day ago | Report Abuse

EPF is so desperate for cash that they can't wait for the 12.5 sen dividend and keeps selling everyday.

Posted by kitmanworld > 1 day ago | Report Abuse

Nevermind, Affin is undervalued, so it is good time buying. Its a dark horse. Deswhy FF kept buying and disposing. $ made out of the weak hands. They're institutional investor anyway.

Posted by jeffrey1166 > 1 day ago | Report Abuse

price look stuck

Posted by loribalak > 1 day ago | Report Abuse

AGM and EGM tomorrow

Posted by loribalak > 1 day ago | Report Abuse

@redhotpepper I think the dividend reinvestment is for all shareholders

Posted by TheContrarian > 1 day ago | Report Abuse

It is for all shareholders.

Posted by stockraider > 1 day ago | Report Abuse

Excellent div mah!

12.5 sen loh!

Posted by loribalak > 1 day ago | Report Abuse

can get extra 10% from dividend reinvestment

Posted by TheContrarian > 1 day ago | Report Abuse

Extra 10% on 12.5%

Posted by kitmanworld > 1 day ago | Report Abuse

I bought the share after the ex date, am I still eligible ?

Posted by vcinvestor > 1 day ago | Report Abuse

nope

Posted by aklobi > 1 day ago | Report Abuse

I would like to see the price lower, so I can get reinvestment price lower. I BELIEVE IN THE LONG TERM POTENTIAL, NOT SHORT TERM.

Posted by TheContrarian > 1 day ago | Report Abuse

@aklobi, initially price was below RM2 due to LTAT's daily selling. After the selling ceased, price climbed up above RM2. Then EPF started selling daily. Once EPF cease selling, price will climb to RN2.50.

Posted by loribalak > 1 day ago | Report Abuse

I think the price increased because of the PBT increasing from RM386 mil in for year 2020 to RM700 mil for 2021.

Have you guys registered for the AGM? It will be held online.

Posted by loribalak > 10 hours ago | Report Abuse

I am in AGM. There is going to be special dividend on top of the 12.5 sen dividend at the end of the year. Special dividend will come from the sale of the asset management business

Posted by kitmanworld > 10 hours ago | Report Abuse

Too bad. Not able to capitalize on this one dividend.... Eh the RM50 cannot e paid via ewallet ka ?

Posted by TheContrarian > 10 hours ago | Report Abuse

@loribalak, thanks for sharing.

Posted by loribalak > 9 hours ago | Report Abuse

Their new dividend policy
1. minimum dividend 25% of profit to be paid as dividends
2. however, that they intend to pay 40% to 60% of their net profits as dividends

So the 12.5sen dividend represents 50% of their net profits for 2021.

Posted by TheContrarian > 7 hours ago | Report Abuse

That's good.

Posted by kitmanworld > 6 hours ago | Report Abuse

Good time over. Time to distribute.