Kep Corp : FY10 Report Card

1. Net profit before exceptional items improved 12% to S$1,419 million, compared to FY 2009’s S$1,265 million.
2. Earnings Per Share of 88.7 cents, up 12% from FY 2009’s 79.4 cents.
3. ROE remained above 20%.
4. Economic Value Added before exceptional items increased from S$1,026 million to S$1,035 million.
5. Total cash dividend increased to 42.0 cents per share, comprising a final dividend of 26.0 cents and an interim dividend of 16.0 cents already paid.
6. Bonus issue to shareholders of one bonus share for every 10 existing shares.
7. Cash outflow of S$310 million.
8. Net cash of 0.02x, compared to 0.14x in 2009.

Example of good fundamental stock looks like: Rising EPS and DPS and ROE > 15%

Dividend Payout ratio = 42/88.7 = 47%