PT Semen Indonesia to pay IDR239bn dividend

PT Semen Indonesia to pay IDR239bn dividend
23 June 2020

PT Semen Indonesia Tbk (SMGR) will pay a dividend of IDR239bn (US$16.9m) or 10 per cent of SMGR's net profit in 2019 which reached IDR2.39trn, down 22.3 per cent YoY. Per share, the dividend amounts to IDR9500, representing a yield of 0.42 per cent.

"The remaining 90 per cent will be used for other reserves," explained the company’s Director of Marketing and Supply Chain, Adi Munandir, during the annual general meeting of shareholders (AGM) in Jakarta on 19 June.

Mr Munandir added that this year SMGR will continue its cost transformation programme of the cement trade management to boost and maintain performance.
The company its shifting its downstream focus to provide building service solutions. "So hopefully if all this time we only serve raw materials, going forward we will provide solutions to consumers directly," he said.

According to Panin Sekuritas analyst, William Hartanto, SMGR dividends remain attractive: “This dividend could prevent investors from the phenomenon of dividend traps, a condition where there is a decline in stock prices after the dividend declaration day. "In addition, SMGR shares are also in an uptrend phase," Mr Hartanto said. They gained 1.06 per cent in the week of trading. “Even in a month, the shares of this cement producer gained 10.47 per cent.”

Published under Cement News