Dividend-News

Daily dividend news for investors in dividend stocks


Want Want China: 100% Dividend Payout Ratio In The Spotlight

Published Mon, 29 Jun 2020 12:35:05 -0400 on Seeking Alpha

Seeking AlphaDividend Ideas | Basic Materials | Hong KongWant Want China: 100% Dividend Payout Ratio In The SpotlightJun. 29, 2020 12:35 PM ET|| About: Want Want China Holdings Limited (WWNTY)by: The Value PendulumThe Value Pendulum Asia Value & Moat StocksUncover cheap stocks, great businesses listed in Asia focusing on HongKong SummaryWant Want's 100% dividend payout ratio for FY2020 sends a strong signal to investors about the company's strong financial position and its shareholder-friendly capital return policy.
Want Want is expected to deliver positive revenue growth in FY2021, but the jury is still out on the company's plans to expand product portfolio and distribution channels.
Want Want trades at 17.3 times consensus forward next twelve months' P/E, and it offers a consensus forward FY2021 dividend yield of 5.1%.
Elevator Pitch
I maintain a Neutral rating on Hong Kong-listed Mainland China food & beverage company Want Want China Holdings Limited (OTCPK: WWNTY) (OTCPK: WWNTF) [151:HK].
This is an update of my initiation article on Want Want published on December 14, 2019. Want Want's share price has declined by -14% from HK$7.01 as of December 12, 2019 to HK$6.01 as of June 26, 2020 since my initiation. Want Want trades at 17.3 times consensus forward next twelve months' P/E, and it offers a consensus forward FY2021 dividend yield of 5.1%.
A key highlight of Want Want's FY2020 (YE March) results was the company's 100% dividend payout ratio, which sends a strong signal to investors about its strong financial position and its shareholder-friendly capital return policy. Looking ahead, Want Want is expected to deliver positive revenue growth in FY2021, as the company recovers from the sales decline in February and March 2020.
But the jury is still out on the company's plans to expand product portfolio and distribution channels. A positive re-rating of Want Want can only happen, if and when Want Want proves to the market... Read more