Texchem jumps 16% on dividend after monetising Sushi Kin shares

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KUALA LUMPUR (March 2): Texchem Resources Bhd jumped as much as 24 sen or 16% on news the company is paying a dividend of 10 sen a share, following completion of the disposal of a 28% stake in Sushi Kin Sdn Bhd for RM102.2 million.

Texchem (fundamental: 0.4; valuation: 1.2) rose to an intraday high of RM1.75, before paring gains. At 3.36 pm, Texchem was traded at RM1.69, with 2.32 million shares having changed hands.

The stock, which was among top gainers on Bursa Malaysia, was transacted at RM1.68 at 4:03pm.

For comparison, the FBM KLCI was down 5.13 points or 0.28% at 1,816.08 points.

In a statement to Bursa Malaysia today, Texchem declared an interim single-tier dividend of 10 sen a share for financial year ending Dec 31, 2015.

The dividend ex-date falls on upcoming March 13. Texchem will pay the dividend this April 1.

In a separate statement, Texchem said it recognised a gain of RM97.61 million from the disposal of the Sushi Kin stake.

The original cost of investment for the 28% Sushi Kin stake — acquired on Dec 29, 2003 — was RM4.59 million, according to Texchem.

(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.)