MNRB was a consistent dividend stock for many many years, until the insurance industry fared badly during the 2008 financial crisis. Other reinsurance companies including General-RE, Berkshire Hattaway-Re is also badly affected during the time. This leads to MNRB de-risking by building up it's capital reserves & future liabilities hence holding off dividend in 2009.
Based on the books, MNRB has somewhat recovered from the damage and it's books are very healthy again. It started repaying small dividend in 2011 & 2012, and should be back to paying majority of it's earning as dividend in the future like it did previously.
Based on cash and available for sale securities, it is holding about RM 3+ net cash on it's books.
Still can buy cos compare the price b4 news announce is up about 0.17 only (3.4 to 3.57) which mean if the div is 32cents so shd hv surplus space to increase further:)
prudentinvestor ... didn't find any note on the tax credit in the annual report or Q results, remember it was raised during previous AGM, how much is the credit
As far as I am aware, companies listed on bursa should start paying tax exempt dividends starting 2008, only companies with sufficient tax credit could still pay franked dividends till 2013. Companies like BAT, Acoustec, Yilai etc had already started paying tax exempt dividends years ago because they are high dividend payers and had used up their tax credit. I hope I am not wrong.
Buy before the official announce on the div ex-date in aug..I do believe still have some space of profit to capture (10-20%) after the news officially announce so happy investing:)
Since the single tier system was introduced in 2008, companies with s108 tax credit balance are allowed to distribute frank dividend till s108 balance is fully utilized or up to 31.12.2013 (whichever earlier), after which the s108 account is deemed zerorised, and all dividend will be tax exempt. I also tend to think that the substantial dividend is related to the unutilized s.108 balance.
Extracted from MNRB 31 March 2012 Annual Report p.205:
The Company did not elect for the irrevocable option to disregard the Section 108 balance. Accordingly, during the transitional period, the Company may utilise the credits in the Section 108 balance as at 31 December 2007 to distribute cash dividend payments to ordinary shareholders as defined under the Finance Act 2007. The Company also has tax exempt income available for distribution of approximately RM60,588,000 (2012: RM60,461,000) as at 31 March 2012. As at 31 March 2012, the Company’s Section 108 balance amounting to RM148,862,000, are sufficient to pay franked dividends out of its entire retained earnings.
The chance is there. As for me, I'm not gonna to rush into this counter now, PNB is dumping it everyday. I rather buy with a bit higher price when it is truly moving on uptrend than waiting endlessly
Big dividends to be declared soon??? How big is that? Worth RM6, looks a bit difficult...This amanahraya trustees keep on disposing the shares, they don't want the dividends???
Last year, MNRB officially announced the proposed first and final dividend on the 30/8/12 and payable on 26/10/12. The date for the first and final dividend to be announced this year is expected to be about the same as last year. Approval by shareholders at the forthcoming AGM to be held in late September is only a formality. Once officially announced and with the ex-date and date of payment known, I believe MNRB’s share price will move by over 5% from the present level. Just look at the performance of Perstima shares after the official announcement of a 26.5 sen dividend.
Nobody can claim that he is an expert. Savvy speculators may make more money in the stock market. MNRB has been a profitable company over the past 5 years, net earnings per share ranged from a low of 12.3 sen during financial year ending 31/3/2009 to a high of 57.7 sen during financial year ending 31/3/2011. The average EPS over the 5 year period was about 38 sen. 7 to 8 years ago, the top 30 largest share holders still held over 90% of MNRB shares. Today it has dropped to just over 70%, meaning major share holders have been selling MNRB shares.
dont make the mistake like some stewpead people here who buy once it is up alot. this counter will go up alot due to divident and other thing. which is a secret for now. buy
Remember to sell also once you make some money. The largest share holder, ASB may decide to unload some shares. It has been trimming on its MNRB shares for the past year.
This counter is somehow not recommended by many investment banks. ASM and ASB have been selling MNRB shares for the past one and a half years. The only plus side is the 32% dividend to be announced later this month.
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gark
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Posted by gark > 2013-06-28 18:40 | Report Abuse
MNRB was a consistent dividend stock for many many years, until the insurance industry fared badly during the 2008 financial crisis. Other reinsurance companies including General-RE, Berkshire Hattaway-Re is also badly affected during the time. This leads to MNRB de-risking by building up it's capital reserves & future liabilities hence holding off dividend in 2009.
Based on the books, MNRB has somewhat recovered from the damage and it's books are very healthy again. It started repaying small dividend in 2011 & 2012, and should be back to paying majority of it's earning as dividend in the future like it did previously.
Based on cash and available for sale securities, it is holding about RM 3+ net cash on it's books.