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KUALA LUMPUR (Oct 14): Sungei Bagan Rubber Co (Malaya) Bhd (KL:SBAGAN) has proposed a dividend of eight sen per share for the financial year ended June 30, 2024 (FY2024).
The proposed dividend was recommended by its board of directors and is subject to shareholders’ approval at the upcoming annual general meeting, Sg Bagan’s bourse filing on Monday showed.
The proposed payout includes a single-tier first and final dividend of two sen per share, along with a single-tier bonus dividend of six sen per share.
The ex-dividend date is set for Dec 12, 2024 for both dividends, with the payment to be made on Jan 2, 2025.
For FY2023 and FY2022, Sg Bagan had declared a total cash dividend of seven sen per share, comprising a two sen regular dividend and a five sen bonus dividend.
Sg Bagan recently reported a 64.92% increase in its net profit to RM26.5 million for FY2024, compared to RM16.07 million a year earlier as revenue rose by 24.53% to RM39.95 million, from RM32.08 million previously.
The company attributed the improved performance to higher crop sales driven by increased harvested tonnage, despite a decline in the average price of fresh fruit bunches. It also saw growth in dividend income, interest income, and rental income over the same period last year.
On Oct 14, Sg Bagan announced the emergence of Kuchai Development Bhd (KL:KUCHAI) as a substantial shareholder, signifying that they have completed the earlier proposed asset and liability acquisition deal between the companies.
The companies had earlier undertaken a deal which saw Kuchai disposing of RM268 million of its assets and liabilities to Sg Bagan via a share deal, as part of efforts to consolidate the assets of the two sister companies linked to Kluang Rubber Co (Malaya) Bhd (KL:KLUANG).
The deal resulted in Kuchai holding a 28.79% stake in Sg Bagan in exchange for the asset injection, after which the shares will be distributed to Kuchai shareholders for them to have direct exposure to Sg Bagan.
Notably, Kluang Rubber owns 42.2% in Kuchai and 43.5% in Sg Bagan, making the deal a related party transaction.
These companies are controlled by the low-profile Singaporean businessman Lee Thor Seng via his private investment company The Nyalas Rubber Estates Ltd, which also has 1.79% direct stake and 59.8% indirect stake in Sg Bagan.
Shares in Sungei Bagan closed 10 sen or 1.6% lower at RM6.15 on Monday, giving the company a market capitalisation of RM572.47 million. Year-to-date, the stock has risen 45.73%.