I-Bhd mulls higher dividends

SHAH ALAM (June 29): I-Bhd, the developer of the 29-ha (72 acre) i-City here, may pay higher dividends as the company expects better profit this year.

Speaking to reporters after I-Bhd's (fundamental: 2.55; valuation: 2.4) annual and extraordinary general meetings today, deputy chairman Datuk Eu Hong Chew said the company expected higher profit due to robust property sales.

"Sales in the first half of 2015 had increased 30% (year-on-year) and we expect double-digit growth in revenue this year," Eu said.

He said the company had a minimum dividend payout policy of 30%.

According to I-Bhd's statements to the exchange, the last time the company rewarded shareholders was via share dividends.

In October 2014, the company had completed its one-for-five bonus issue involving 103.04 million new bonus units.

For financial year ended December 31, 2014, net profit was higher at RM53.41 million versus RM43.97 million a year earlier. Revenue rose to RM261.11 million from RM152.15 million.

Today, Eu said I-Bhd might form a real estate investment trust for its properties "when our property (portfolio) is significant enough".

He also said the company might consider other options to unlock the value of its investment properties.

At 12.30pm, I-Bhd shares fell one sen or 2% to settle at 56 sen for a market value of RM546.4 million.

The stock has fallen 10% this year, underperforming the FBM KLCI's 4% decline.