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11-11-2014, 02:22 PM
Hi GFC,
I agree 0.7c div this is a good surprise but I don't think this is allowed by the sale of KTIS shares. They only sold 126 750 SGD of KTIS so that's really marginal. I am actually quite happy that they keep most of their KTIS shares. At the moment KTIS dividends paid to KWC allow an additional 0.5c div. KTIS did quite well the last 2 quarters so hopefully they will be able to raise substantially their dividends.
My expectation is 2.5c div for 2015 but this is assuming a very small sale of KTIS shares. If they sell 10% every year then 3c div/year can be easily paid but again I would be happy to see their holding in KTIS kept so as a more sustainable driver for future growth in FCF. Especially that KWC associates (mostly from the construction sector) are not really doing well and giving much to KWC at the moment.
But who knows going forward these associates can finally show some good return to KWC
<vested>
I agree 0.7c div this is a good surprise but I don't think this is allowed by the sale of KTIS shares. They only sold 126 750 SGD of KTIS so that's really marginal. I am actually quite happy that they keep most of their KTIS shares. At the moment KTIS dividends paid to KWC allow an additional 0.5c div. KTIS did quite well the last 2 quarters so hopefully they will be able to raise substantially their dividends.
My expectation is 2.5c div for 2015 but this is assuming a very small sale of KTIS shares. If they sell 10% every year then 3c div/year can be easily paid but again I would be happy to see their holding in KTIS kept so as a more sustainable driver for future growth in FCF. Especially that KWC associates (mostly from the construction sector) are not really doing well and giving much to KWC at the moment.
But who knows going forward these associates can finally show some good return to KWC
<vested>