KUALA LUMPUR (March 8): Permodalan Nasional Bhd (PNB) and the Employees Provident Fund will be receiving a total of RM12.55 billion in FY2023 dividends from the top 50 Malaysian public-listed companies (PLCs) with substantial stake held by government-linked investment companies (GLICs), with PNB reaping RM6.6 billion, and the pension fund RM5.95 billion.

Indeed, in the wake of rising prices and a weak ringgit, those who remained invested in these 50 companies would have been pleased with the average 6% growth in dividend payout for FY2023 over the year before.

The 50 dividend-paying companies listed on Bursa Malaysia – selected based on their contribution to GLICs – declared a total of RM42.8 billion in dividends for their last financial year, up by RM2.42 billion from FY2022, according to data compiled by The Edge.

The increase comes on the back of higher dividend per share (DPS) paid by 31 of the 50 companies, against 15 who paid lower dividends and four whose DPS were unchanged.

Of the RM42.8 billion, Malaysia’s six GLICs will collect RM18.03 billion, up RM1.5 billion or 9.07% from RM16.53 billion received from the same companies for FY2022.

Five GLICs, namely PNB (RM6.6 billion), EPF (RM5.95 billion), Khazanah Nasional Bhd (RM2.8 billion), Kumpulan Wang Persaraan (Diperbadankan) (KWAP) (RM2.14 billion), and Lembaga Tabung Haji (RM369 million), will be receiving more dividends from these companies compared with last year.

The Armed Forces Fund Board (LTAT) is collecting an estimated RM66 million — after excluding any payment from Boustead Plantations Bhd, currently being taken private by the fund coupled with weaker dividends from Affin Bank Bhd.

The biggest jump in dividend payout came from Khazanah-linked companies namely CIMB Group Holdings Bhd (43 sen per share; payout higher by RM1.84 billion or 65%); IHH Healthcare Bhd (18.6 sen, higher by RM1.02 billion or 165%); and Time dotCom Bhd (85.8 sen per share, higher by RM1 billion or 175%).

Two more Khazanah-linked counters UEM Sunrise Bhd and Telekom Malaysia Bhd also raised their dividend payout by 50% in FY2023, compared with FY2022.

Staple names continued to be the biggest contributors, led by Malayan Banking Bhd (RM4.3 billion of RM7.2 billion FY2023 dividends paid to the six GLICs) and CIMB (RM2.5 billion out of RM4.6 billion).

Maybank is the biggest contributor for PNB (RM3.14 billion for a 43% stake), EPF (RM872 million for a 12% stake), and KWAP (RM359 million for a 4.97% stake). CIMB is the biggest contributor for Khazanah (RM1 billion for 23%), and the second biggest for EPF (RM615 million for 13.4%) and KWAP (RM291 million for 6.4%).

In third place is Tenaga Nasional Bhd, whose FY2023 dividends was unchanged from 46 sen per share last year, channelling around RM1.7 billion to the GLICs, followed by RHB Bank Bhd (RM920 million, of which RM691 million will go to EPF for its 40% stake in the bank).

Coming after Sime Darby Plantation (RM800 million to GLICs) and IHH Healthcare Bhd (RM701 million) at sixth place was Public Bank Bhd, where 19% or RM701 million of its RM3.7 billion FY2023 dividends will go to the EPF (RM551 million for its 14.9% stake) and KWAP (RM150 million for 4%).

For Tabung Haji, Bank Islam Malaysia Bhd remains its biggest dividend contributor (RM234 million for its 48% stake, out of the total payout of RM361 million); Bank Islam declared an improved dividend of 16.81 sen per share, from 13.8 sen previously.

Tabung Haji's only other controlling stake is in TH Plantations Bhd, which will provide it with RM13 million or two sen per share for FY2023. From Syarikat Takaful Malaysia Bhd, TH will receive RM33 million for its 28% stake, based on FY2023 dividend of 14 sen per share, slightly more than the 13.5 sen paid in FY2022.

The biggest dividend laggards include Petronas Chemicals Group Bhd (down by RM2.24 billion) as petrochemical prices and demand dipped from a peak, as well as Affin Bank Bhd (down RM541 million) and IJM Corp Bhd (down RM466 million), both having paid a one-off special dividend the year before.

Others who declared smaller dividends include Kuala Lumpur Kepong Bhd (down by RM431 million) and Maxis Bhd (down RM312 million).

Sector-wise, weaker dividends came from plantation companies such as IOI Corp Bhd, Genting Plantations Bhd and Sime Darby Plantation Bhd.

Axiata Group Bhd also declared a smaller dividend of 10 sen per share or RM917 million, from 14 sen or RM1.28 billion last year, hurt by the robust US dollar and strong competition.

Nonetheless, SimePlant came in fifth (RM800 million) and Axiata eighth (RM684 million), in terms of total contribution to the GLICs, by virtue of circa 75% of their shareholdings being held by the GLICs.

Similarly Astro Holdings Bhd – also linked to Khazanah – was hit by the strong greenback and stiff competition in the local streaming market. It changed its dividend policy just before posting its first quarterly loss last year.

Some companies’ total payout was smaller than the headliners, but notable for the huge jump in dividends on a per share basis.

Those outperformers include United Plantations Bhd, YTL Power International Bhd and YTL Corp Bhd (EPF owns around 5% in these companies), as their dividend payout rose by a third from a year ago.  AMMB Holdings Bhd was another standout as it paid 18.3 sen per share for the year ended March 31, 2023, from five sen for FY2022 (up RM431 million). AMMB has declared six sen in dividends for FY2024 so far, unchanged from the same period last year.

Big jumps in dividends per share were also seen in Khazanah-linked Malaysia Airports Holdings Bhd (to 10.8 sen in FY2023, from 3.91 sen in FY2022) as well as UOA Development Bhd, in which EPF holds a 12% stake, as it doubled its payout to 20 sen, from 10 sen before.

Meanwhile companies in the electrical and electronics (E&E) segment lagged slightly, but it is worth noting that some usually announce their final dividend much later.

A worthy mention was Velesto Energy Bhd, who issued its maiden dividend of 0.25 sen per share or RM2.5 million, marking a successful turnaround by the rig operator, some six years after it initiated a restructuring that saw PNB pay RM800 million to subsequently own a controlling stake in 2017.

Dividends by Gamuda Bhd, whose financial year ended in July, also rose by RM1 billion or over 300% to 50 sen per share in FY2023, thanks to a special dividend payment following its highways divestment last year. It has declared six sen per share in dividends so far for FY2024.

Separately, utility group Malakoff Corp Bhd's dividends for FY2023 fell to 1.5 sen per share, from 5.25 sen for FY2022, on the back of its first annual loss since listing, led by a weaker overseas performance, and the impact of coal price swings in the year.

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