T3EX Global Holdings Corp’s (台驊) board of directors has approved a proposal to distribute a record cash dividend of NT$3.2 per share after the company’s net profit surged 117 percent to NT$541 million (US$19.1 million) last year.
The proposed cash divided suggests a payout ratio of 68 percent based on T3EX’s earnings per share of NT$4.72 and a yield of 6.68 percent based on its closing share price of NT$47.9 in Taipei trading yesterday.
“It is our goal to maintain a payout ratio of above 60 percent, as we want to attract investors with higher yields. Given that our earnings per share hit a new high last year, we decided to boost the cash dividends,” T3EX told the Taipei Times by telephone.
Photo: Wang Yi-hung, Taipei Times
From 2015 to 2019, its payout ratio ranged from 60 to 72 percent, it added.
The freight-forwarding and logistics services provider attributed last year’s record profits to higher freight rates and its success in booking cargo capacity, despite demand outpacing supply, allowing its revenue to grow 34.66 percent annually to a record NT$15.16 billion.
Revenue from ocean freight-forwarding service accounted for 52 percent of its total sales, with another 33 percent derived from its air freight-forwarding service, 5 percent from its rail business in China and another 10 percent from its logistics services in China, company data showed.
Its profit margin from its ocean freight-forwarding service grew 22 percent annually to NT$1.34 billion, buoyed by increases in freight rates on all major shipping routes, such as from Asia to Europe, from Asia to North America and intra-Asia, the company said.
Rising air cargo rates raised its margin from air cargo forwarding service by 33 percent to NT$706 million, it added.
T3EX reported a 409 percent gain in the volume of goods transported via its railway business in China, as, given a tight market for air and sea cargo, many customers opted to have their goods transported from China to Europe or Russia by rail, it said.
T3EX forecast that shipping and air cargo rates would remain high until the end of June, as it would not be easy for shippers and airlines to boost their capacity amid the COVID-19 pandemic, it said.
While revenue from China accounted for 71 percent of the total, the company aims to diversify its revenue stream this year by expanding its operation in Taiwan and Southeast Asia, it said.
“Given the US-China trade war and supply chain transfer, we think it is time to focus on markets other than China. We are optimistic about business growth in Southeast Asia, as exports are expected to remain high this year,” the company said.
Sales from its operations in Taiwan and Southeast Asia rose 23 percent and 36 percent respectively last year, making up 17 percent and 8.6 percent of its total revenue, company data showed.
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