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Shares of Yulon Nissan up on dividend hopes

Shares of Yulon Nissan up on dividend hopes

Taipei, March 24 (CNA) Shares of Yulon Nissan Motor Co. Ltd. (???) moved higher Tuesday morning as investors anticipated a high dividend payout based on the company's dividend policy a year earlier, dealers said. The buying also reflected the market's strong liquidity, as foreign institutional investors continued to inject funds into Taiwan's market and increase their holdings of blue chips such as Yulon Nissan in both the old economy and electronics sectors, they said. As of 11:14 a.m., shares of Yulon Nissan had added 2.83 percent to NT$308.50 (US$9.79). The auto sub-index was up 0.23 percent at 338.23, while the weighted index on the Taiwan Stock Exchange was down 0.40 percent at 9,719.38. "The hopes of a fat dividend were boosted by the company's release of its latest results Monday," Hua Nan Securities analyst Henry Miao said. "The optimism prompted investors, including foreign investors, to pick up the stock, taking advantage of a high return compared with low bank deposit rates." In a statement Monday, Yulon Nissan reported a net profit for 2014 of NT$6.52 billion, down 10.63 percent from a year earlier. It had earnings per share of NT$21.75, the second highest in the company's history behind NT$24.33 in 2013. "Although Yulon Nissan suffered a fall in earnings last year, it could continue to be the top earner in terms of EPS among local car vendors," said Miao, who expected Hotai Motor Corp. to report EPS of about NT$18 for 2014 and remain the second most profitable car seller. According to Miao, Yulon Nissan tends to issue a cash dividend representing about 80 percent of its EPS every year, which would equate to a cash dividend of NT$17 based on its 2014 results. "Based on the stock's closing level Monday, the dividend yield could come close to 6 percent. That's very attractive to many investors," Miao said. "It was no surprise that investors chased the stock soon after the local bourse opened." Miao said the buying came partly from foreign institutional investors who are still moving funds into the region at a time when several major central banks are pumping funds into the market to boost their economies. "Foreign institutional investors prefer to buy into heavyweights in all sectors. In the auto segment, Yulon Nissan is one of the top picks," Miao said. Miao said a significant return from its investments in China lifted the auto maker's bottom line, limiting the decline from a year earlier. "With demand in the China car market expected to remain solid, Yulon Nissan could continue to benefit from its China investments this year," Miao said. Yulon Nissan is expected to hold a board meeting in May to propose a cash dividend for 2014, and has scheduled an annual general meeting for June 30 to secure shareholders' approval for the cash dividend proposal. (By Frances Huang)


Updated : 2021-06-20 19:06 GMT+08:00