Amid global economic uncertainties and mixed performance across major indices, the Hong Kong market has faced its own set of challenges. Despite these headwinds, dividend stocks listed on the SEHK continue to attract investors seeking steady income in volatile times. In such an environment, a good dividend stock is characterized by a strong balance sheet, consistent earnings growth, and a reliable payout history. These attributes are particularly valuable when market conditions are less predictable and economic data remains mixed.
Overview: SITC International Holdings Company Limited, a shipping logistics company with a market cap of HK$47.54 billion, provides integrated transportation and logistics solutions in Mainland China, Hong Kong, Taiwan, Japan, Southeast Asia, and internationally.
Operations: SITC International Holdings Company Limited generates revenue primarily from its Container Shipping and Logistics segment, which amounts to $2.48 billion.
Dividend Yield: 5.6%
SITC International Holdings declared an interim dividend of HK$0.72 per share for H1 2024, with a payment date of 20 September 2024. Despite a net profit margin drop from 35% to 23.1%, the company reported increased sales and net income for the period. The dividend payout is covered by earnings (72.2%) and cash flows (76.4%), though its yield (5.63%) is lower than top-tier payers in Hong Kong, and past dividends have been unstable.
Overview: Xtep International Holdings Limited designs, develops, manufactures, and markets sports footwear, apparel, and accessories for adults and children in China with a market cap of HK$11.17 billion.
Operations: Xtep International Holdings Limited generates revenue from three main segments: Athleisure (CN￥1.68 billion), Mass Market (CN￥12.31 billion), and Professional Sports (CN￥1.04 billion).
Dividend Yield: 4.9%
Xtep International Holdings announced an interim dividend of HK$0.156 per share for H1 2024, payable on 30 October 2024, and a special dividend of HK$0.447 per share. The company's earnings and net income have shown growth, with sales reaching CNY7.20 billion and net income at CNY752.07 million for the period. Despite a volatile dividend history, the current payout is well-covered by both earnings (48.8%) and cash flows (33.9%).
Overview: Wasion Holdings Limited is an investment holding company involved in the research, development, production, and sale of energy metering and energy efficiency management solutions for energy supply industries across various regions including China, Africa, the United States, Europe, and other parts of Asia with a market cap of HK$5.21 billion.
Operations: Wasion Holdings Limited generates revenue from three main segments: Advanced Distribution Operations (CN￥2.51 billion), Power Advanced Metering Infrastructure (CN￥2.99 billion), and Communication and Fluid Advanced Metering Infrastructure (CN￥2.42 billion).
Dividend Yield: 5.4%
Wasion Holdings' dividend payments have been volatile over the past decade, with a payout ratio of 44% indicating good coverage by earnings. Recent earnings for H1 2024 showed significant improvement, with net income rising to CNY331.03 million from CNY213.82 million a year ago, driven by increased sales and effective cost control measures. Despite its low dividend yield compared to top-tier payers in Hong Kong, Wasion is trading at a substantial discount to its estimated fair value.
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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:1308 SEHK:1368 and SEHK:3393.
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