KUALA LUMPUR (July 19): Malaysia Building Society (MBSB) still has many opportunities to monetise the property it currently owns, says OSK Research Sdn Bhd.
It said MBSB's proposed disposal of its wholly-owned subsidiary, Gadini SB to Ken Holdings Bhd, was in line with the group's objective of disposing of non-income generating assets, foreclosed properties and properties acquired previously.
"The proposed sale is expected to result in a gain on disposal of some RM6.75 million, which will translate into an increase in its earnings per share by about 0.48 sen, based on our financial model.
"Assuming MBSB decides to reward shareholders by paying out this gain in full as dividend, the stock's gross dividend yield would increase from 5.5 per cent to 5.7 per cent, based on our projections," it said in a research note today.
After disposing of Gadini, MBSB would still own nine properties with an estimated book value of RM238.4 million, OSK added. — Bernama