Unisem’s 9M17 results in line, dividend yield expected to remain satisfactory
KUALA LUMPUR: Unisem (M) Bhd’s (Unisem) first nine months of 2017 (9M17) results have come in line with most expectations, with analysts projecting that the group’s dividend yield will remain satisfactory.
In a filing to Bursa Malaysia, Unisem reported that for the nine months period ended September 30, 2017, the group recorded and net profit of RM1.108 billion and RM128.839 million respectively, representing an increase of 15.4 per cent in revenue and 15.2 per cent in net profit as compared to the same period a year ago.
All in, the group’s 9M17 financial performances came in within the research arm of MIDF Amanah Investment Bank Bhd’s (MIDF Research) but slightly below consensus expectations, accounting for 70.4 per cent and 69.2 per cent of financial year 2017 (FY17) full year earnings estimates.
According to MIDF Research, since the positive turnaround in 2014, the group’s operating profit has been growing at a steady pace.
The research arm believed the group is placing more emphasis in the provision of products and services which command better profit margin to maintain the growth momentum.
“We understand that the group has managed to win new orders for application in rentalbike systems, microphones and memory power management.
“In addition, we also expect healthy demand from automotive segment to push the financial performance of Batam’s plant into the positive territory in 2018.
“On another note, due to its healthy net cash balance, we expect dividend yield to remain satisfactory at approximately three per cent,” the research arm said.
All in, MIDF Research reiterated its ‘buy’ recommendation on the stock.
The research arm also maintained its target price of RM4.58 per share.