May be some of you here take this as a dividend stock. But bear in mind that a good dividend stock is if the company give away 8/10cents (not necessary 80% of EPS) he makes.
But this company give away > 100% of its EPS that's send another message.
@2Invest EPS is calculated based on EARNINGS, a.k.a. accounting profits. In deriving at accounting profits, you have a lot of non-cash items like depreciation, amortisation, impairment etc, to name a few.
Imagine you built a highway for RM100M. And you get to collect toll from it for 50 years. So, to put a simple picture, maybe you will depreciate/amortise the highway cost over 50 years, so it's RM2M p.a.
You collect 5M toll revenue. RM2M amortisation. Earnings = RM3M
Remember, the cost, the CASH is paid out during the construction period. You are only absorbing the accounting expense now.
You are perfectly okay to pay out RM4M or even RM4.5M as dividends, after covering your cash overheads like salaries etc.
Continuing the rationale from the discussion above, during covid lockdown times toll revenue would have been lower (indeed reflected in the reported revenues). But now toll revenues are back to normal. So shouldn't dividends be higher too?
Div should be announced tonight. Agreed of concern is LTH continued selling for some time now and I am sure it is holding the share price down. Maybe just a rebalancing. I think if LTH were serious in wishing to dispose, they should have no problem placing a big chunk or all in an off-market transaction (maybe Lim would buy?). They may of course have some inside info. Hard to see why they would sell a solid stock with a regular 7.4% Dividends as LTHs portfolio may not be overflowing with good Dividend stocks. It maybe they just need some cash to buy tea and cakes or new cars for the Management.
Dividend announcement is due this week, but maybe they decided to wait until next week after the election as all eyes are now on the clowns in that circus. Payment is not due till end December so no real hurry to announce.
The sellout because of the missed forecast of revenues?? But I do have faith that the rebounds in revenue happen at the next quarter report. Keep it for stable dividends and more solar energy is going to be harvested in the coming months. What concerns me is the dumps from LTH as there's no source about it.
We will have to wait for the next report to see if the drop in profit was due to one off aspects. I note that T-Haji have not sold any shares since the end of November. Hopefully they have finished their selling. Time will tell. Div yield of 7.76 is undeniably attractive, so I see limited downside.
We can only rely of what we are officially told by Taliworks reputable management who in this case are not conmen. Based on the assurances given in the following article, I'm not selling my shares and I fully expect to continue to get my dividends. https://klse.i3investor.com/web/staticfile/view/479882
Again, we can only rely of what we are officially told by Taliworks reputable management who in this case are not conmen. Based on the assurances given in the following article the power production is already sold so cash flow should be assured. I think in the longer-term power can only get more expensive as its heavily subsidized in Malaysia, this bodes well for better revenue stream in due course. If Sola power is a dead end, then the whole world has it wrong. It is a must to lessen the reliance on coal and other fossil fuels. I expect large international sola power producers will emerge in coming years and may look at Taliwoks Power as a target for expansion. Who knows maybe Taliworks will be a big international player in years to come. With this acquisition Taliworks is already one of the largest, if not the largest Sola power generators in the region. I'm not selling my shares. SEE:- https://www.theedgemarkets.com/article/taliworks-completes-four-solar-projects-acquisition
As at Sep'22, the cash flow is negative from operation. Means the partial dividend is funded by borrowing/reserve, not from operation. The reserve will deplete one day.
True that. On second look, I'm sceptical the renewable energy segment can sustain this dividend level going forward. Took profit and moved elsewhere. Bye Tali, thanks for the past dividends.
Star 25th May 2023:- PETALING JAYA: Taliworks Corp Bhd expects steady contribution from water and solar segments, with a slight dip for its highways, going forward. Recognition from its construction segment is likely back loaded in financial year 2023 (FY23).
The company expects to pay 6.6 sen dividend per share (DPS) and its dividend yield of 8.1% remains its key focal point. It foresees no issues in maintaining the 6.6 sen DPS going forward, HLIB Research said after attending a briefing with the company. Based on previous guidance, it said, optimising the capital structure in its renewable segment could add another RM120mil to RM130mil to its existing RM191mil cash pile, including investments.
cwc1981, that's a tough question to answer. Clearly, EPS is not a good measure, because it is an accounting measure that doesn't reflect TALIWRK's cashflows properly, because it is after depreciation and non-cash adjustments that understates its cash generating abilities. However, committing to 1.65 sen every quarter requires RM33 million cash payouts - that's a lot of money. Q1/23 cash has improved than Q4/22 and Management indicates they can further improve from their renewables segment by over RM100 million, but Management can say anything. One measure is EBDA (Earnings Before Depreciation and Adjustment). For Q1/23, it improved to RM23.6m vs RM20.0m the prior quarter. But RM23.6m is still less than RM33m dividends. So, I'm wondering if investors should be worried? However, its EBITDA (Earnings Before Interest, Tax, Depreciation, Adjustment) is 36.3m, larger than 33m. But doesn't TALIWRKS have to pay interest costs, and taxes? And after payment, they don't really belong to shareholders anymore isn't it? So, how to justify? However, if you look at its Cash holdings, after paying out 33m, its cash balance grew from 48m to 76m. In short, yes, it looks fishy, but: 1. Management indicates they have no problem to support 1.65 sen dividend (but do you trust them?) 2. Cash increases. (but do you understand how cash has increased?) 3. Management further indicates there's room to improve the renewables segment (but do you trust them?). If unsure, keep it a small proportion of your portfolio and don't be greedy with the high dividend yield. Because Return OF Investment is much more important than Return ON Investment.
I think we don't need to worry about Taliworks at least until year 203X, so long as they still have the highways and the water contracts. Worst case scenario drop a bit dividend per quarter, but easily still more than 6% annual yield.
@pinky, thanks, when I saw the Q1 cashflows 2.5 months ago I thought it looks like it has potential ... my buy price at 0.80 finally filled after a long wait. Still, future is uncertain, I look forward to Q2 report in next couple weeks.
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Posted by 2Invest > 2022-06-10 17:18 | Report Abuse
May be some of you here take this as a dividend stock. But bear in mind that a good dividend stock is if the company give away 8/10cents (not necessary 80% of EPS) he makes.
But this company give away > 100% of its EPS that's send another message.
That's my 2 cents.