UOA Development Soars on Dividend Announcement

1 Mins read

UOA Development, a leading Malaysian property developer, experienced a significant surge in its share price following the release of its impressive dividend announcement. Shares climbed as high as 8.7%, marking their largest one-day percentage gain in five years. Currently trading at 1.73 ringgit ($0.38), the stock remains 7.5% higher.

The company made headlines on Tuesday with a filing proposing a first interim dividend of MYR0.20 per share. This unexpected move surprised analysts at MIDF Research, who noted that UOA Development typically announces dividends in the last quarter of the fiscal year. Over the past decade, the company has consistently paid dividends ranging from MYR0.10 to MYR0.15. Now, with growing cash reserves, UOA Development seems determined to reward its shareholders.

As of March 31, the company’s total cash and short-term investments stood at MYR2.2 billion, a notable increase from MYR1.8 billion at the end of 2021. Analyst Jessica Low Jze Tieng from MIDF suggests that this accumulation of cash influenced the decision to distribute dividends, saying, “As most of the money is sitting as cash, management of UOA Development decided to make the distribution to the shareholders.”

Impressed by the generous dividend payout, MIDF Research has raised its 2023 dividend forecast for UOA Development to MYR0.30 from MYR0.10. The firm has also upgraded the stock’s rating to a “trading buy” from neutral, increasing its target price to MYR1.91 from MYR1.65 to reflect the positive impact of the high dividend payout.

Overall, UOA Development’s latest dividend announcement has sparked excitement among investors and analysts alike. With an enhanced dividend forecast and a promising market performance, the company appears poised for further growth in the near future.

Related posts

Banking Regulations for Preventing Failures

2 Mins read
Banking regulators have the power to prevent future bank collapses, according to a panel of banking experts who emphasized the importance of…

Dave's Strong Q4 Performance

1 Mins read
Shares of Dave surged on Tuesday following the digital bank’s announcement of a profitable fourth quarter earlier than expected, with a positive…

DaVita Expands in Latin America

1 Mins read
Shares of DaVita reached record levels as the kidney care services company announced its significant expansion into Latin America through a $300…

Leave a Reply

Your email address will not be published. Required fields are marked *

61 + = 71