Fulgent Sun proposes its largest-ever cash dividend

By Kuo Chia-erh  /  Staff reporter

Fri, Mar 09, 2018 - Page 11

Shoemaker Fulgent Sun Group (鈺齊國際) yesterday said its board has proposed a cash dividend of NT$4.1, the highest level in the company’s history, thanks to record-breaking net profit last year.

The proposed dividend represents a yield of nearly 6.12 percent, compared with the firm’s closing stock price of NT$67 yesterday, Taiwan Stock Exchange data showed.

The company said it plans to hold its annual shareholders’ meeting on June 8 in Yunlin County to review the proposed payout.

Fulgent Sun said it aims to maintain a high cash dividend policy, with the proposed dividend translating into a payout ratio of 72.57 percent, based on last year’s earnings per share of NT$5.65.

The company posted net income of NT$803 million (US$27.4 million), or earnings per share of NT$5.23, for the whole of last year, a 14.3 percent increase from NT$702.26 million in 2016, which the company attributed to a better product portfolio and improved operating efficiency.

Revenue last year totaled NT$10.39 billion, up 14.4 percent year-on-year from NT$9.08 billion, with gross margin increasing from 18 percent to 19.8 percent, company data showed.

Operating margin rose from 7.7 percent to 10.9 percent, the data showed.

Fulgent Sun, which supplies outdoor footwear to more than 40 brand clients worldwide, said revenue last month jumped 34.2 percent to NT$667.5 million, from NT$497.52 million a year earlier.

However, sales in the first two months of this year amounted to NT$1.58 billion, a 7.1 percent decrease from NT$1.7 billion a year earlier, partly due to shipment delays in January, the company said.

The company said it is still positive about sales for the first half of the year, supported by continued capacity expansion since last year.