Business

Wednesday December 24, 2008

Chin Well cancels dividend


The company says it wants to conserve cash

PETALING JAYA: Bolts and nuts maker Chin Well Holding Bhd yesterday became the second company in as many days to scrap plans to pay dividends to shareholders this year, citing the need to conserve cash amid the worsening global economic situation.

The stock hit a 5½-year low of 65 sen yesterday before bouncing back to end the day up two sen at 73 sen. Turnover was thin, with 61,000 shares changing hands. The stock has fallen 34% year-to-date.

“The shareholders of the company had unanimously approved all resolutions (at the AGM) yesterday except for the resolution on the first and final dividend of 6% (or three sen per share) for year ended June 30, 2008 (FY08),’’ Chin Well told Bursa Malaysia yesterday.

Penang-based Chin Well made a net profit of RM27.25mil, or 10.03 sen per share, in FY08. It had on Nov 28 said it would pay a dividend of three sen per share to shareholders next month.

The book closure announcement was no longer applicable, the company said yesterday.

Chin Well’s main shareholders, who are also executive directors of the company, cited worsening global economic conditions, falling commodity prices and substantial drop in demand for the group’s products, as well as the need to “conserve and save on the group’s cashflow” as reasons to reject the dividend payout proposal.

On Monday, palm oil planter Tanah Emas Corp Bhd’s main shareholders rejected plans to return part of the company’s profit as dividends to shareholders.

 
CHINWEL :  [Stock Watch]  [News]


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