After 1.5 years, Hafary rewarded my friends by running from 24 cents to 39 cents. Top gainer this morning, with 20% jump to 39 cents. The interim dividend was a bumper 2.5 cent a share!Â
1. UOB KH could be supporting this stock because it has 20 m new shares to place out.
2. Hafary's core business didnt make much money in 1H, it's the one-off gain from property development in Aljunied project that accounted for the gigantic bottomline gain.
3. Dividend of 2.5 cents seems to come from the one-off prop gain. On the other hand, Hafary being 90% owned by the Low family will certainly strive to keep up good dividend payouts. The track record suggests so. At the end of the day, Hafary may be a dividend yield play, rather than growth (unless their new Chinese & Viet new ventures prove to be strongly earnings positive, which they are not currently.
quite choppy earnings trend in recent years. However, the dividend has been going up.Â
Let's see what the performance is like in 2H which is from Jan-June.Â
The volume traded was surprisingly high, as if people really sought after the shares for the dividend. FA-wise, I have a question in my mind: What is the profit level from Hafary's tile supplies to the booming HDB projects? It has just started delivery, and I am not seeing big impact in the July-Dec 2012 period. Anyway, I quote from the official statement:
"The Group has secured orders of surfacing materials for use in a considerable number of HDB residential estate
development. During FY2013, the Group is expected to commence deliveries of these secured orders. These deliveries are expected to contribute positively to the Group."
