The share price of Minor International Public Company Limited (SET: MINT) rose more than 3% to THB30.75 in the morning session on Tuesday after the company announced a change of dividend policy to a minimum of 30%.
The company announced earlier this morning that the existing policy of the company stated that the company has to take into consideration potential growth of the company’s performance, investment plans, business expansion and terms and conditions of loans and debentures. In this case, the company does not have a fixed dividend payout ratio, and therefore the dividend payment is considered based on their financial performance in each year.
However, the new policy of MINT stated that it will pay dividends of not less than 30% of the core net profit of the consolidated financial statements after deducting legal reserves and other reserves each year. Dividend payment shall be made by taking into consideration relevant factors, e.g., the company’s performance, liquidity, investment plans, business expansion and financial covenants, and subject to declaration by the Board of Directors for the shareholders’ best interests.
According to Refiniv consensus, MINT is expected to record 1,705 million baht of net profit this year and 5,056 million baht in 2023. Under an assumption of minimum 30% dividend payment, shareholders are looking at not less than THB0.10 per share for its operation in 2022 and THB0.29 per share for the operation in 2023.