KUALA LUMPUR (Sept 30): Gamuda Bhd told analysts that the builder will resume paying dividends in the current financial year ending July 31, 2022 (FY22) after the company did not declare any annual dividends for the first time on record in FY21 as the construction and property development sectors contended with the impact of Covid-19 pandemic-driven movement restrictions, according to CGS-CIMB Securities Sdn Bhd.
"While the absence of dividends in FY21 was expected, the group (Gamuda) guided that it will resume normal dividends of 12 sen [a share] in FY22, translating into dividend yield of 3.8%,” CGS-CIMB analyst Sharizan Rosely wrote in a note on Thursday (Sept 30).
In a statement to Bursa Malaysia on Wednesday (Sept 29), Gamuda said cumulative net profit rose to RM588.32 million in FY21 from RM376.5 million a year earlier although revenue was lower at RM3.52 billion versus RM3.66 billion.
For 4QFY21, Gamuda said net profit stood at RM214.08 million compared to net loss of RM12.52 million a year earlier although revenue was lower at RM886.67 million versus RM926.52 million.
"The group’s full-year earnings rose 56% due to stronger construction and property earnings as works on all fronts picked up pace on the back of rigorous Covid-19 control measures adopted by the group,” Gamuda said.
Gamuda’s filing shows that the company did not declare any dividends for FY21, its first annual dividend absence since the year 2000 based on the group’s Bursa filings.
For FY20, Gamuda said its annual dividend payment stood at six sen a share.
According to Gamuda’s website, the company, which was incorporated in 1976, was listed on Bursa in 1992.
"Gamuda is an engineering, property and infrastructure company based in Malaysia. It is one of the largest Malaysian infrastructure companies, with a proven track record of delivering innovative breakthrough solutions worldwide,” the company said.
At Bursa’s 12:30pm break on Thursday, Gamuda’s share price settled up three sen or 0.99% at RM3.05, giving the company a market value of about RM7.66 billion.
Gamuda has 2.51 billion issued shares.