Homepage
PR Newswire
29-09-2015, 06:29 PM
It is unlikely a dividend will be declared at Group level for two reasons:
1) Bulk of the profits and cash are generated at the underlying assets (which are not 100% owned). If we look at the Company level, it only holds RM 2 million debt against RM 16 million debt. Insufficient to pay a dividend. Granted, cash could be upstream via dividend declaration from the underlying subsidiaries but this brings us to point 2.
2) There are plans to invest in capex to expand the hospitals in the near future so it is likely cash is being retained at asset level to finance it.
I expect continued growth in the Group's revenue and profit in the future. Forex risk remains the major risk.
(Not Vested)
1) Bulk of the profits and cash are generated at the underlying assets (which are not 100% owned). If we look at the Company level, it only holds RM 2 million debt against RM 16 million debt. Insufficient to pay a dividend. Granted, cash could be upstream via dividend declaration from the underlying subsidiaries but this brings us to point 2.
2) There are plans to invest in capex to expand the hospitals in the near future so it is likely cash is being retained at asset level to finance it.
I expect continued growth in the Group's revenue and profit in the future. Forex risk remains the major risk.
(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.