Written by The Edge
C&O Pharmaceutical Technology (E92.SG) +2.1% at $0.48, off new 52-week high of $0.485 on higher dividend, improved June-quarter results unveiled during midday break, according to Dow Jones.
China-based drugmaker proposing final payout of 1.35 cents/share vs 1.05 cents/share year earlier, bringing total dividend for fiscal FY10 ended June to 8.15 cents/share, representing hefty 17.3% yield based on Friday’s closing price.
Payout follows 62.6% on-year jump in 4Q10 earnings to HK$60.5 million ($10.5 million) on higher sales, valuation gain on investment properties. Excluding exceptional items, core earnings for coming quarters may remain resilient, backed by firm demand for healthcare services, China’s increased spending to build up domestic drug sector.
Still, Beijing’s recent proposal to reform drug pricing policy, which would result in lower selling prices, will be closely watched by investors for impact on C&O’s profitability. Orderbook quotes suggest price not expected to clear $0.50.
Dividend : 1.35 cents
