29 April 2012

Panasonic Malaysia: Week 17 (23-27 April) Stock Picks Commentary

Stock Picks #3
Panasonic Manufacturing Bhd (PANAMY)

Week high : RM 23.50 (Up RM 1.54 - 7%)

On 23 April, MIDF Research initiated coverage on Panasonic and the analyst report highlighted Panasonic Malaysia strong cash position. It also reported that Panasonic has been consistently rewarding its shareholders with steady dividend payouts.

More impressively, the gross dividend payout ratio has exceeded 100% for the past few years, with the most recent payout ratio of 107% for FY11. Even though the company doesn’t have a fixed dividend policy, MIDF Research expects Panasonic Malaysia to continue churning out substantial dividend payouts to its shareholders.

Market took this news as positive as expectation of hefty dividend would be good for shareholders. The stock rose to a high of RM 23.50 already beating MIDF Research's target price of RM 21.62.

PANAMY rose 7% (RM 1.54) since 23 April to the week’s highest RM 23.50 on 26 April and closed at RM 22.50 at the end of this week.

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