Hot Stock Time Engineering rises 4% on big dividend yield

Hot Stock Time Engineering rises 4% on big dividend yield
Business & Markets 2013
Written by Kamarul Anw ar of theedgemalaysia.com
Monday, 27 May 2013 12:10

KUALA LUMPUR: TIME ENGINEERING BHD [] (TEB) became investors’
favourite in morning trades as the stock is offering a handsome net
dividend yield of 8.45% for its financial year ended December 2012
(FY12).

At 11:39 am, Time shares rose 1.5 sen or 4.23% to 37 sen with 37.51
million shares transacted. The counter was trading between 36 sen and
38.5 sen a unit earlier.

Last Wednesday, TEB announced a final net dividend of three sen per
share for FY12, with June 18 as ex-date. At the last closing price of 35.5
sen, the stock is offering a net dividend yield of 8.45%.

Dealers said amid “a good market” activity today, investors are looking at
penny stocks that have not moved for a while. They said the company’s
dividend yield could be a major factor in attracting interest to the counter.

SJ Securities senior remisier Goh Kay Chong told theedgemalaysia.com
that apart from the dividend play, TEB has been sought after by
institutional buyers since May 7.

“They slowly accumulated shares on that date. On May 20, these funds
came back in a big way and they are still in the market now (for TEB
shares),” said Goh.

In fact on March 21, institutional funds had started buying TEB shares in
a big way. Bloomberg data shows that 24.5 million of TEB shares
changed hands on that day.

“It’s almost a no-brainer that with a dividend yield that high, investors
wouldn’t want (TEB) shares,” another dealer said.

Comment by Winston Goh: The in and out of the institutional buyer is the key to winning the market.

KLCI closes 2.79 down

KLCI closes 2.79 down at 1274.78. PetDag was down 35 sen to RM8.15, Tanjong slipped 20 sen to RM15.90, Lafarge dropped 18 sen to RM 4.58 but Transmile rose 17 sen to RM 1.57.



Time Engineering first quarter net profit is recorded at RM 12.16 m vs net loss RM 9.75m a year ago. Revenue is recorded at RM 53.96m vs RM 214.4 a year ago. EPS is 1.57 sen vs loss per share of 1.26 sen.

Star Publicaton first quarter pre-tax profit is recorded at RM 59.17 m vs RM 46.59m a year ago. Net profit is recorded at RM 42.52m vs RM 34.45m, revenue is RM 204.73 m vs RM 184.57 m.

Jerneh Insurance targets double-digit growth in gross premium income for financial year 2008 by focusing on corporate sector, small business and agency.

PM refutes US Treasury report which states that Ringgit is undervalued, says local currency reflects its true value and that of the economy.

Tanjung Offshore plans to buy 3.4 offshore service vessels, capex of RM 200 mil, in addition to 5 more ordered in past 2 years.

Khazanah Nasional sold 16.55 m Time Dotcom shares in open market between May 12 to 16, cutting total stake to 58.69% or 1.48b.

Transmile rose 13 sen to RM 1.53(1.15m) at 9.14 am. It plans to issue shares RM 2.20 each to lenders to settle borrowings. First quarter losses is recorded at RM 46.7m vs RM 31.85 m.

Telekom group recognized allowance for RM 117.8 m doubtful debts for certain foreign VoIP debtors in first quarter. Probe underway to recover debts.

Telekom group including TMI first quarter net profit down at RM 519.7m from RM595.71m a year ago. Revenue is recorded at RM 4.62b vs RM 4.18b. EPS is 15.1 sen vs 17.4sen.

BNM international reserves is at record high of US$125.1 b or RM 399.9b enough for 9.9 months retained imports, 7.3 times short term external debt.