KUALA LUMPUR (Nov 22): MIDF Research has maintained its Neutral rating on JT INTERNATIONAL BHD [] (JTI) but raised its target price for the stock to RM6 (from RM5.50) based on discounted cash flow valuation, with a lower WACC of 10.9% from 11.1%.
The research house said on Tuesday that as at-end Sept 2011, JTI’s net cash fell to RM189.9 million from RM240 million as at-end June 2011.
“We are ruling out the possibility of JTI declaring a special dividend payout in FY11.
“Currently, we are maintaining our FY11f gross dividend per share to 40 sen which translates into yield of 5.1% based on the current price,” it said.
The research house said on Tuesday that as at-end Sept 2011, JTI’s net cash fell to RM189.9 million from RM240 million as at-end June 2011.
“We are ruling out the possibility of JTI declaring a special dividend payout in FY11.
“Currently, we are maintaining our FY11f gross dividend per share to 40 sen which translates into yield of 5.1% based on the current price,” it said.
