MALAKOF 5264 MALAKOFF CORPORATION BERHAD wraps FY22 with decent dividend yield boosted by higher 4QFY22 net profit
Malakoff Corp Bhd’s final dividend of 2.45 sen per share for FY2022 should provide some cheer to yield investors.
This is after the power producer displayed powerful results in its 4QFY22 with its net profit more than doubled year-on-year.
The company reported a net profit of RM41.9 million for 4QFY2022, compared with RM15.1 million a year ago mainly due to higher energy payment from its Tanjung Bin power plant on the back of higher applicable coal price.
Its quarterly revenue jumped 53% to RM2.97 billion from RM1.9 billion a year ago.
For the full year, net profit rose 20% to RM255 million from RM213.2 million in the previous year on the back of 60% rise in revenue to RM10.4 billion from RM6.5 billion.
The final dividend will be paid on May 26, bringing Malakoff’s total dividend payment for the year to 5.25 sen per share, compared with 5.10 sen for FY2021.
Long time investors in Malakoff have been disappointed with the company’s dismal share price performance as it is still trading below its IPO price of RM1.80, making its debut in 2015.
Can’t blame them as Malakoff is now trading at less than half of its IPO at 68 sen.
At the current level, it represents some 10.5% increase over the past 6 months.
The counter hit a 52-week low of 58 sen in June last year before touching a year high of 74 sen last month.
The creeping optimism stems largely from its ability to pay decent yields.
Analysts expect Malakoff to be able to sustain its dividend payments. Its dividend payouts have exceeded 80% every year since FY16.
AmInvest Research forecasts a gross DPS of 5 sen for FY23, which implies a decent yield of 7.3%.
What makes the counter attractive is its low valuations of a FY23 PE of 9x, which is below its 2-year average of 14x.
AmInvest maintains a buy call on Malakoff but with a lower DCF-based fair value of 81sen per share from 87 sen previously, with a WACC of 7.5%.
The lower FV was largely due to a reduction in Malakoff’s FY23 net profit by 8% dragged by a weaker fuel margin resulting from the fall in coal and gas costs.
To make matters worse, Malakoff’s core net profit is expected to drop in FY23 due to the expiry of GB3’s power purchase agreement in December 2022.
The GB3 gas power plant (640MW) accounted for 11% of Malakoff’s capacity payments in FY22.
On its other businesses, Malakoff is expected to secure more solar rooftop projects this year although the earnings contribution is unlikely to be significant as the size of the projects is small.
Meanwhile, Kenanga Research believes Malakoff should see improved earnings stability having completed the low-pressure turbine blade failure repair works in Feb 2022 at its 1,000MW coal-fired power plant Tanjung Bin Energy.
There are plenty of reasons to like Malakoff especially if you are looking for consistently good yields but may be wary of the fluctuation in coal and gas prices.
#MALAKOF
https://xifu.my/OpinionsComment.aspx?BID=B03124437P1AEABB
Singapore Investment Bloggers
-
-
-
-
-
-
-
-
-
-
-
SBJUL23 GX23070H is 2.82%5 hours ago
-
-
-
-
May 2023 Portfolio7 hours ago
-
Retirement Journey Update for May 20238 hours ago
-
-
-
-
Sea Limited – Dip or Doom?13 hours ago
-
-
-
-
-
Dividends for May 20231 day ago
-
-
-
-
Investment Summary - May 20231 day ago
-
-
-
-
-
-
Support Us: Learn To Invest1 day ago
-
-
Portfolio (May 31st, 2023)1 day ago
-
-
Portfolio Summary for May 20232 days ago
-
-
-
Looking at Rental Yields2 days ago
-
-
-
-
-
-
-
-
Month of May 20232 days ago
-
-
-
I was right! Sort of....2 days ago
-
-
-
Updates for May 20233 days ago
-
-
-
-
-
-
-
-
-
-
-
Dirty, Dirty Coal6 days ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Meta's new Twitter competitor1 week ago
-
Liquidity, Liquidity, Liquidity1 week ago
-
-
-
-
-
-
-
-
-
-
Success in life2 weeks ago
-
-
Eh Aye…2 weeks ago
-
Welcome Rain!2 weeks ago
-
-
-
-
A New Light3 weeks ago
-
-
-
-
$250 to 5mil3 weeks ago
-
-
-
-
-
-
Monthly Summary of April 20234 weeks ago
-
-
-
-
-
-
My retirement test drive: Q1, 20231 month ago
-
Snack Empire – Crunch Time1 month ago
-
祭友文:拿起来,再放下1 month ago
-
-
-
-
-
The Ben Mezrich Screenplay Token1 month ago
-
-
-
1Q 2023 Investment Strategy Update1 month ago
-
-
-
Dividends Contributors – Top 102 months ago
-
-
Individual Income Tax Season 2023 Singapore2 months ago
-
-
-
How long is the RES course?2 months ago
-
Cost of having a baby2 months ago
-
-
-
I don’t know how My Portfolio is Performing2 months ago
-
-
-
-
-
-
How to become a real estate agent in Singapore3 months ago
-
-
New Launch Spotlight: The Botany at Dairy Farm4 months ago
-
A New Beginning – The Year of the Rabbit4 months ago
-
-
-
Demoralized4 months ago
-
2022 Thoughts, Hello 2023!5 months ago
-
-
Series of Defaults for Maple Finance5 months ago
-
Takeaways from “Sea Change”5 months ago
-
-
Greed is Coming Back6 months ago
-
-
-
-
Investing is Easy6 months ago
-
-
-
-
-
-
-
-
-
Portfolio Update - 2Q202210 months ago
-
-
What is Overemployment11 months ago
-
Terra Hill Condo (former Flynn Park)11 months ago
-
Alibaba VS Tencent: The Battle Royale11 months ago
-
-
-
-
-
-
-
-
-
Recent Post
-
-
-
-
-
RCECAP 9296 RCE CAPITAL BERHAD 改变派息政策1 week ago
-
-
二小姐《无情的人儿》2 weeks ago
-
-
-
-
-
-
-
下跌股:康大工业(KOTRA,0002, 主板保健股) RM5.57支撑4 months ago
-
-
【马股】16%+高息股!0负债高现金!能入吗?6 months ago
-
8月棕油库存料升13.5% 种植公司次季净利看涨9 months ago
-
CHINWEL – Not too late to invest.11 months ago
-
恒大置地(TAMBUN,5191,主板产业股)迈向98仙/敏源1 year ago
-
-
Home
MALAKOF
xifu
MALAKOF 5264 MALAKOFF CORPORATION BERHAD wraps FY22 with decent dividend yield boosted by higher 4QFY22 net profit