1) Annual Dividend Yield 8.5% based on my average price of RM0.62
2) Business has been growing up for past 3 years (from 2010 to 2012)
3) ROE > 10%
4) As stated in Annual Report 2012, it has RM96mil cash vs RM84mil borrowing. So, it is still in a net cash position.
I accumulated TAMBUN (5191) from Sep of 2012 until Oct 2012 with average cost RM0.62 and i kept it till today.
TAMBUN is a very good fundamental company, it has a lot other advantages as below:
1) Dividend Policy 40%-60%
2) TAMBUN is the mainland Penang market leader with tremendous growth potential.
3) TAMBUN has a high visibility on future earning where it has future GDV of more than RM2 billion that can last till 2020.
4) Its main project, Pearl City is near to the new 2nd Penang bridge and 1 minute drive from the proposed Electrified Double Track Commuter Train Station.
5) A rising trend of population shift from the Penang Island to the mainland as the island properties are not longer affordable.
Back to 2012, the reason i bought TAMBUN is because of its business has been growing up well for past 3 years (2010-2012). Also, as i mentioned above, it has a high visibility on future earning due to the favour demand on mainland property. So, i am confident that i will be getting more and more dividend from TAMBUN.
My Investment Result
I gained more than 100% from initial capital, this is not included the RM0.053 dividend that i received in 2012. I'm glad that TAMBUN is similar to My Stock - WELLCAL where i will receive more and more dividend for years to come.
About Future
TAMBUN will continue perform well for coming years with its unbill sell reached RM510mil as at Q2 of 2013. I'm targeting TAMBUN to give at least RM0.06 dividend in financial year 2013 which will be equal to nearly 10% dividend yield with my average cost of RM0.62. With this, i'm happy to keep it as long as it can give me 8-10% dividend yield every year.
