BASED on the list of top 10 companies in Malaysia’s government-linked investment companies (GLICs) portfolio (in terms of holdings size), six GLICs are expected to receive a total dividend of RM2.78 billion for the fourth quarter of 2020 (4Q2020) based on their shareholdings.
Khazanah Nasional Bhd
Sovereign wealth fund Khazanah Nasional Bhd stands to reap a total dividend of RM1.29 billion — the highest among GLICs — based on data compiled by The Edge.
Khazanah, which announced a dividend of RM2 billion to the Malaysian government in 2020, reported a net profit of RM2.9 billion last year, despite the challenging economic environment as a result of the Covid-19 pandemic.
Notably, from the top 10 companies in its portfolio, Tenaga Nasional Bhd (TNB) has paid the most dividend to Khazanah, amounting to RM849.95 million.
TNB — in which Khazanah holds 25.77% equity interest — declared a final single-tier dividend of 18 sen per share and a special single-tier dividend of 40 sen per share for the fourth quarter of financial year 2020 (4QFY2020) ended Dec 31, 2020.
Telecommunications group Axiata Group Bhd is expected to deliver RM168.56 million to Khazanah through its second interim dividend of five sen for 4QFY2020; and CIMB Group Holdings Bhd will pay a total of RM129.91 million to Khazanah from its interim dividend of 4.8 sen.
Meanwhile, TIME dotCom Bhd and Telekom Malaysia Bhd will hand over a total of RM80.26 million and RM60.94 million respectively.
Five of the top 10 companies declared no dividend for the period: UEM Sunrise Bhd, Malaysia Airports Holdings Bhd, Bioalpha Holdings Bhd, Malaysia Building Society Bhd (MBSB) and Lotte Chemical Titan Holding Bhd.
While there are concerns about the relaxed withdrawal conditions for the i-Sinar facility and with the voluntary reduction in employees’ 2021 share of statutory contribution rate to 9% from 11%, the Employees Provident Fund (EPF) is expected to receive a total dividend of RM971.36 million from the top 10 companies, in terms of shareholdings, in its portfolio.
Just like Khazanah, TNB is expected to hand over a total dividend of RM590.91 million to the provident fund; and RHB Bank Bhd is slated to pay RM170.58 million in dividend cheque to EPF.
EPF has a direct stake of 17.86% in the national utility company and 42.54% in RHB.
Meanwhile, Axiata will be paying a dividend of RM79 million, given the provident fund’s 17.23% stake in the telco.
Sime Darby Plantation Bhd, on the other hand, will be giving RM62.09 million in dividend while EPF stands to get RM47.27 million from Telekom Malaysia Bhd, RM15.82 million from MRCB, RM2.9 million from Bermaz Auto Bhd and RM2.79 million from Globetronics Technology Bhd.
Only two of the top 10 companies declared no dividend: MBSB and IJM Corp Bhd.
Based on the top 10 largest companies in its portfolio, Permodalan Nasional Bhd (PNB) is entitled to receive a total dividend of RM370.73 million.
State-controlled unit trust fund PNB will be receiving the largest dividend cheque — a total of RM319.48 million — through its holding in Malayan Banking Bhd (Maybank).
Notably, PNB holds a direct interest of 7.27% in Maybank, the largest financial institution in Malaysia in terms of asset size. The banking group declared a final single-tier dividend of 38.5 sen in its 4QFY2020.
Cumulatively, through its holding in the banking group via Amanah Saham Bumiputera (ASB), the fund management company stands to receive RM1.86 billion in dividend from Maybank. ASB holds a direct interest of 41.28%.
The fund is also expected to receive a dividend of RM25.02 million from Sime Darby Bhd as the conglomerate, has announced a dividend of six sen per share.
Meanwhile, pharmaceutical company Duopharma Biotech Bhd will be expected to hand over a dividend of RM19.78 million to PNB based on its six sen dividend declared to its shareholders.
The other two companies — Axis Real Estate Investment Trust (REIT) and UMW Holdings Bhd — are expected to deliver dividends of RM4.42 million and RM2.04 million respectively to PNB.
Five of the top 10 companies declared no dividend: S P Setia Bhd, MNRB Holdings Bhd, Velesto Energy Bhd, BIMB Holdings Bhd and Amanah Harta Tanah PNB.
Kumpulan Wang Amanah Persaraan (KWAP) is slated to obtain RM104.73 million from its top 10 companies in its portfolio.
Petronas Gas Bhd (PetGas) will pay the highest dividend, amounting to RM56.56 million to KWAP. PetGas has declared a dividend of 27 sen to its shareholders.
Meanwhile, KWAP received a dividend payment of RM30.79 million through its shareholding in the local stock exchange operator, Bursa Malaysia Bhd. Bursa announced a final dividend of 26 sen per share and a special dividend of eight sen per share for FY2020.
KWAP will receive a dividend of RM8.68 million from its holding in Inari Amertron Bhd, RM4.69 million from CapitaLand Malaysia Mall Trust and RM4 million from Axis REIT.
Five of the top 10 companies declared no dividend: LBS Bina Group Bhd, S P Setia Bhd, Yinson Holdings Bhd, SKP Resources Bhd and IJM Corp Bhd.
Meanwhile, Lembaga Tabung Angkatan Tentera (LTAT) will be receiving a dividend cheque of RM27.79 million for 4Q2020.
The biggest contributor would be Affin Bank Bhd, in which the fund has a 35.24% stake. LTAT is expected to receive RM25.65 million from Affin Bank, based on the 3.5 sen dividend declared.
The fund also received a dividend of RM1.35 million from Boustead Plantations Bhd, RM494,755 from Atlan Holdings Bhd and RM292,556 from Pharmaniaga Bhd.
Six of the top 10 companies declared no dividend: Boustead Holdings Bhd, OCK Group Bhd, Boustead Heavy Industries Corp Bhd, DKSH Holdings (Malaysia) Bhd, Wah Seong Corp Bhd, and Malaysia Marine and Heavy Engineering Holdings Bhd.
Lembaga Tabung Haji (LTH), on the other hand, is entitled to receive a total dividend of RM12.53 million.
Gas Malaysia Bhd, which has declared a dividend of 5.4 sen, will be paying LTH a dividend cheque of RM5.37 million.
The pilgrimage fund also stands to receive RM2.64 million from Taliworks Corp Bhd, RM2.6 million from MRCB, RM1.37 million from Al-’Aqar Healthcare REIT and RM557,265 from Ranhill Utilities Bhd.
Five of the top 10 companies declared no dividend: TH Plantations Bhd, Theta Edge Bhd, BIMB, Southern Acids (M) Bhd and Cahya Mata Sarawak Bhd.
This article first appeared in The Edge CEO Morning Brief on March 25 and has been updated