As global markets navigate a period of economic adjustment, the Hong Kong market has experienced fluctuations, with the Hang Seng Index recently facing a decline. Amidst these dynamics, dividend stocks remain a focal point for investors seeking steady income streams in uncertain times. In this article, we explore three notable dividend stocks on the Stock Exchange of Hong Kong (SEHK), including PC Partner Group, that exemplify resilience and potential for consistent returns in today's market environment.
Overview: PC Partner Group Limited is an investment holding company that designs, develops, manufactures, and sells computer electronics with a market cap of HK$1.85 billion.
Operations: The company's revenue primarily comes from the design, manufacturing, and trading of electronics and PC parts and accessories, amounting to HK$9.94 billion.
Dividend Yield: 8.4%
PC Partner Group has shown a positive trend in dividend payments over the past decade, despite some volatility. The company's dividends are well-covered by both earnings and cash flows, with a payout ratio of 66.1% and a cash payout ratio of 7.8%. Recent financial results indicate improved profitability, with net income rising to HK$194.06 million for the first half of 2024. However, its removal from the S&P Global BMI Index may impact investor perception.
Overview: Consun Pharmaceutical Group Limited is engaged in the research, development, manufacturing, and sale of Chinese medicines and medical contrast medium products in the People’s Republic of China, with a market cap of HK$6.62 billion.
Operations: Consun Pharmaceutical Group's revenue is primarily derived from the Consun Pharmaceutical Segment, which accounts for CN¥2.33 billion, and the Yulin Pharmaceutical Segment, contributing CN¥410 million.
Dividend Yield: 7.4%
Consun Pharmaceutical Group has declared an interim dividend of HK$0.3 per share, supported by a reasonable payout ratio of 52.3% and cash payout ratio of 53.7%. Despite recent earnings growth to CNY 399.77 million for the first half of 2024, the company's dividend history is marked by volatility and unreliability over the past decade. Recent board changes with Mr. Gao Haien's appointment as Company Secretary may influence future strategic directions impacting dividends.
Overview: Pico Far East Holdings Limited is an investment holding company involved in exhibition, event, and brand activation, visual branding activation, museum and themed environment projects, and meeting architecture activation with a market cap of HK$2.38 billion.
Operations: Pico Far East Holdings Limited generates revenue primarily from exhibition, event and brand activation (HK$5.01 billion), followed by visual branding activation (HK$454.95 million), museum and themed entertainment (HK$444.37 million), and meeting architecture activation (HK$162.78 million).
Dividend Yield: 6.5%
Pico Far East Holdings' dividend payments are well-supported by a low payout ratio of 48.6% and a cash payout ratio of 36.2%. However, the dividend yield of 6.51% is below the top quartile in Hong Kong, and its dividend history over the past decade has been volatile and unreliable, despite recent earnings growth of 63.5%. The company trades at a significant discount to its estimated fair value, which may interest value-focused investors.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SEHK:1263 SEHK:1681 and SEHK:752.
