Monday, October 31, 2011

Stock Pick: Zhulian (5131)

Quarter results from FY2009 to FY2011


Last trading day closing price: RM1.72 (cum dividend) 28.10.2011
This noon closing price: RM1.70 (ex-dividend) 31.10.2011


Surprisingly, the current PER is below 9.0 based on rolling-4Qs results.


The effective dividend yield, based on price of RM1.70 and normal dividend of 3 sen per share per quarter, is around 8.5% as the company has a policy to pay dividend every quarter.


I regard this company is a good counter for long term holding as

  1. good dividend of effectively above 8% p.a. 
  2. strong financial position (i.e. zero borrowing) and
  3. high potential of price appreciation (i.e. very low PE ratio).



Zhulian's  corporate website, click here.


Disclaimer: This is a personal finance blog, reflecting my personal views. All information provided here, including recommendations (if any), should be treated for informational purposes only. The blog owner should not be held liable for any informational errors, incompleteness, or delays, or for any actions taken in connection on information contained herein.