SINGAPORE (Sept 7): Ban Leong Technologies paid out total dividend per share of 1.75 cents in FY18, translating into a dividend yield of 7.1%.
This makes it the 13th straight year the technology products distributor for a diverse range of IT accessories, multimedia and data storage products has paid out dividends.
On a cumulative basis, Ban Leong has paid 15.95 cents in dividends since its listing on the SGX Mainboard in 2005.
Over the past 25 years since its incorporation in 1993, Ban Leong has made its brand name synonymous with fashionable, innovative and user-focused tech-savvy products through regular marketing activities.
Ban Leong is currently the authorised distributor for more than 178 products sold under 52 brand names.
In FY18, Ban Leong achieved record-high pretax profit of $6.4 million. The IT accessories segment accounted for 33% of Ban Leong’s revenue, while the multimedia segment comprised 65%. The remaining 2% of FY18 revenue was derived from the data storage segment. In terms of FY18 operating profit, IT accessories accounted for 51%, followed by the multimedia segment with 48% and the data storage segment with 1%.
In an unrated report by CGS-CIMB Securities, analyst William Tng says Ban Leong intends to continue focusing on its core Southeast Asian market. The group is also exploring opportunities in Hong Kong and China, as it hopes to expand its presence there. It expects the global IT industry to continue to be very competitive. Hence, careful management of product mix is crucial to sustain profit margins and optimise returns. Ban Leong also offers IT products for sale through its own e-store, as younger consumers tend to make most of their purchases online.
As at 11am, shares in Ban Leong are trading at 24.5 cents or 5.2 times FY18 earnings. On a historical FY18 P/BV basis, Ban Leong trades at 0.97 times against ROE of 18.6%.
