Annual performance of Keppel Corporation is compared against SembCorp Industries’ in this post.
Net Profit $1.42 billion (up 12%)
EPS 88.7 cents
Total cash dividend per share 42 cents (47.3% of EPS)
Dividend yield 3.68% (based on 25 Feb share price of $11.42)
PE ratio 12.87 times
Keppel Corporation is proposing bonus issue of 1 share for every 10 shares held. This will reduce Keppel Corporation’s share price with no real additional cash benefit. The share price per share will decline technically to $10.38 after bonus issue (based on $11.42 share price before bonus issue). Investor will then own 1.1 shares as a result at $10.38 per share.
Net Profit $792.9 million (up 16%)
EPS 44.4 cents
Total dividend per share 17.0 cents (38.3% of EPS)
Dividend yield 3.47% (based on 25 Feb share price of $4.90)
PE ratio 11.04 times
Both companies performed credibly. Return on Equity (ROE) were nearly the same at 22.2% and 22.3%. Keppel Corporation is more generous with dividend proposal, giving out 47.3% of earnings per share as cash dividend. Its dividend yield is higher also at 3.68%.
At Friday’s closing share prices, Price to Earnings (PE) ratio was higher for Keppel Corporation at 12.87 times, whereas SembCorp Industries’ was 11.04 times. Investors perceived more value for Keppel Corporation.
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