KESM declares 12.5sen dividend for FY18

by TMR

KESM Industries Bhd announced a 12.5 sen interim dividend for its financial year ending July 31 this year (FY18), representing a 92.3% increase from the 6.5 sen dividend in FY17.
 
In an exchange filing yesterday, the burn-in service company for the semiconductor industry noted this represents a total payout of RM5.4 million which will be paid to entitled shareholders on Aug 17 this year.
 
The company added the higher dividend payout reflects the company’s free cash flow increasing in FY18.
 
Its CEO noted the company’s capital expenditure this fiscal year will not reach the RM140 million spent in FY17, while the expected growth in the semiconductor industry globally augurs well for the company’s FY18 performance.
 
The higher interim dividend announced is in spite of the company’s net profit for the first nine months of FY18 being 8.4% lower year-on-year at RM28.02 million.