Hiwin reveals cash, stock payout plans

Mar 31, 2014

Hiwin Technologies Corp, which makes machine tools like ballscrews and linear guideways, on Friday last week said that its board had approved a plan to distribute a cash dividend of NT$2.7 and a stock dividend of 3 percent per share this year.

The dividend plan is based on the company’s earnings last year of NT$2.02 billion (US$66.29 million), or NT$7.96 per share, according to the company’s filing to the Taiwan Stock Exchange.

Earnings last year were 0.5 percent higher than the NT$2.01 billion, or NT$7.91 per share, it made in 2012, the filing showed.

The proposed cash dividend translates into a payout ratio of 33.92 percent, which is slightly lower than the 34.13 percent a year ago, and a dividend yield of 0.95 percent, based on its share price of NT$283 on Friday.

The plan still has to be approved at the company’s annual shareholders’ meeting, which is scheduled for June 27.

Hiwin posted a revenue of NT$12.44 billion last year, up 0.57 percent from NT$12.37 billion a year ago, the filing said.

Daiwa Capital Markets on Wednesday upgraded Hiwin to “buy” from “outperform” and raised its target price for the company to NT$385 from NT$300, citing its strong outlook on the back of the improvement in the purchasing managers’ index in Europe since October last year.

“Our research on Taiwanese machine-tool makers shows strong growth momentum in sales of machine tools in Europe. This is especially important for Hiwin, in our view, as Europe accounts for a high proportion, or about 25 percent, of the firm’s total sales,” Daiwa analysts Christine Wang and John Lai said in a report.

Wang and Lai added that they expected the demand recovery in Europe to be sustainable.

Hiwin is likely to post a revenue of NT$15.87 billion and profit of NT$3.05 billion this year, Daiwa said.

Source: The Taipei Times