KUALA LUMPUR (April 12): Shares of Harrisons Holdings (M) Bhd rose 31 sen or 6.35% in thin trading, after the group proposed to raise its dividend payout to 30 sen per share for its latest financial year.

At noon market break, Harrisons Malaysia shares stood at a record high of RM5.19. The counter was the biggest gainer across Bursa Malaysia at the time of writing.

The proposed 30 sen dividend per share brings its dividend yield to 5.78% based on its current share price. The group is seeking shareholders’ approval for the proposal at its upcoming annual general meeting.

The group has been paying dividends of 20 sen per share for four consecutive years from the financial year ended Dec 31, 2017 (FY17) up to FY20.

For FY21, Harrisons Malaysia's net profit rose 40.57% year-on-year to RM41.45 million or 60.53 sen per share, from RM29.49 million or 43.06 sen per share, as its retail divisions as well as trading and distribution divisions improved in the period to offset a swing to loss in its shipping agency division.

Full-year revenue rose to a record of RM1.93 billion, up 6.66% from RM1.81 billion, mainly from its trading and distribution divisions, due to the increased sales in key consumer agency goods and malex in the building materials and engineering products division.

Moving forward, Harrisons Malaysia expects its fast-moving consumer goods (FMCG) business, which makes up over 80% of total businesses, to grow. 

However, it sees challenges in other operations, namely building materials, engineering products, industrial and agricultural chemical products division, shipping agency, and retail.

Shares of Harrisons Malaysia have been trending upwards since mid-2020. From RM3.75 at end-2020, the counter has risen by RM1.44 or 38.4% to its current share price of RM5.19, which values the group at RM355.46 million.