Favelle Favco rallies on record dividend payout

by S BIRRUNTHA / graphic by TMR

FAVELLE Favco Bhd shares rallied by 59 sen or 22.8% to RM3.17 in intraday trade today after it declared a highest-ever interim dividend of 85 sen for its financial year ending Dec 31, 2022 (FY22) yesterday.

Favelle Favco’s major shareholder Muhibbah Engineering (M) Bhd saw its share price surge 5.5 sen or 10.5% to 58 sen at press time.

Year to date, Favelle Favco’s share price has jumped 75 sen or 31.25%.

In a filing to Bursa Malaysia, Favelle Favco stated that the ex-date for the interim dividend would be on May 25 and payment made on June 10.

The group previously declared a first and final tax-exempt dividend of eight sen per ordinary shares totalling RM17.9 million in respect of FY21, which was paid on Sept 2, 2021.

For FY21, Favelle Favco posted a higher net profit of RM48.12 million, up 8% from RM44.49 million in FY20. Annual revenue grew 8.9% to RM603.99 million from RM554.45 million a year ago.

The group has an outstanding orderbook of RM524 million as at Feb 19, 2022 from the clients in the oil and gas sector, shipyards, construction, wind turbine industries and intelligent automation.