KUALA LUMPUR (Sept 3): Cash-rich Globetronics Technology Bhd declared total dividend per share of 10 sen, comprising single tier special dividend of five sen, for financial year ended Dec 31, 2015.

The special dividend is lower than the previous corresponding quarter as the semiconductor firm wants to conserve cash for expansion.

In a filing to Bursa Malaysia, Globetronics’ board announced a single tier second interim dividend of 10% per ordinary share of RM0.50 each, or five sen, and similar quantum for a single tier special dividend of 10%.

The ex-date for both dividends is on Oct 20, while payment date is on Nov 4, 2015.

“The rate of the single tier special dividend declared is lower by 2% when compared with the rate of the special dividend declared for the corresponding period in previous financial year ended Dec 31, 2014.

“The lower dividend is to conserve cash for the future capital expenditures and expansion of the group,” said Globetronics.

For the second quarter ended June 30, Globetronics’ net profit was almost flat at RM17.93 million against RM17.3 million last year, while revenue dipped slightly to RM89.03 million from RM90.62 million a year ago.

The marginally higher net profit achieved was mainly due to higher volume loadings from some of the group's customers, better economy of scale coupled with productivity improvement/cost control programme carried out in the group.

Globetronics is on a net cash position. As at June 30, the company’s cash and cash equivalents stood at RM177.29 million, while its borrowings amounted to RM15.18 million.

Globetronics’ (fundamental: 3; valuation: 1.7) share price increased six sen or 1.04% higher at RM5.83 today, with a market capitalisation of RM1.62 billion. Year-to-date, its share price has gained 39%, significantly outperformed FBM KLCI’s 8.56% decline.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)