$JTIASA / 4383 (JAYA TIASA HOLDINGS BHD)

Declares 3 sen dividend, or about 20% of PAT.

Net cash position currently stands at RM 272mil from RM 107.2mil vs last Q. After further reducing an additional RM 60mil of debt, the current debt outstanding is about ~ RM 62 mil. YTD, they have paid off about RM 130mil of debt while paying out RM 34mil dividends. The 3 sen recently declared amounts to about another RM 29mil.

I doubt the management would totally clear off all their debt just to keep trade lines active, so with the current debt outstanding at RM~60mil, this effectively implies that their debt repayment cycle has completed. So, we shall see how much additional dividend the management deems fit to declare in August, or if they will transition to a quarterly policy since their debt has been mostly paid off. This is just speculation, however. Guidance has always only been at least 20% of PAT, while they paid out 40% last year.

Profit wise, this is their best 1H performance since listing, and in these 2Q alone they are almost beating their best full year results too.

Are you disappointed at the lower dividends declared? It might be too early to jump to conclusions.