IJM may make 50 sen-a-share capital payout

IJM Corp Bhd, the country's second biggest builder, may soon declare a capital repayment, while its property unit is close to finalising as many as two en-bloc sales that could help boost profits, UBS Investment Research says in a report."We estimate a pending capital repayment of 50 sen a share and a recurring dividend of 15 sen a share," the investment house said, without disclosing the basis of its estimate.In 2007, IJM paid a dividend of 15 sen a share, of which five sen a share was in the form of a special cash payment.UBS also believes there is potential earnings upside from en-bloc property transactions from IJM's 65 per cent-owned property unit, IJM Land. "According to management, it is finalising two en-bloc commercial transactions worth RM400 million. Our earnings estimates do not assume any en-bloc transactions. "We estimate these two transactions could add RM70 to RM80 million to our financial year 2009 net profit forecast of RM446 million, if they go through," the UBS report said. Read more

(New Straits Times 28-3-2008)