ICT outfit Artroniq adopts 30% dividend payout policy
KUALA LUMPUR (Dec 16): Artroniq Bhd (formerly known as Plastrade Technology Bhd) has adopted a dividend policy that aims to distribute at least 30% of the company’s profit after tax (PAT), excluding unrealised income from adjustments due to accounting policy that are non-cash, as a dividend for 2023 to its shareholders.
“Any dividend will be paid only if approved by the company’s board of directors or shareholders, as the case may be, out of funds available for such distribution,” the cutting-edge ICT outfit told Bursa Malaysia on Friday (Dec 16).
It said the actual amount and timing of dividend payments will depend upon the company’s cashflow position, results of operations, business prospects, current and expected obligations, and such other matters as the board of directors may deem relevant.
“While the dividend policy reflects the board’s current views on the group’s financial and cashflow position, the dividend policy will be continuously reviewed from time to time,” it said.
Artroniq posted a net profit of RM320,000 in the third quarter ended Sept 30, 2022 (3QFY2022), a slight increase from RM310,000 a year ago, due to a higher gross profit margin despite lower revenue.
The company’s 3QFY2022 revenue dropped 68.05% to RM27.45 million from RM85.91 million previously, due to lower revenue from its ICT products.
For the nine-month period (9MFY2022), Artroniq registered a RM91,000 net profit, down 98.2% against RM5.11 million, on higher administrative expenses — as revenue decreased 34.46% to RM123.77 million from RM188.86 million.
Artroniq expects the challenging environment for the industry to continue this year, as high commodity prices, rising freight costs, the introduction of the RM1,500 minimum wage, Bank Negara Malaysia’s hike in the overnight lending rate by another 25 basis points, the weakening of the Malaysian ringgit, and geopolitical uncertainties weigh on the company’s profit margin, while rising inflationary pressures could dampen discretionary spending.
Artroniq closed up half a sen or 0.85% at 59.5 sen on Friday, translating into a market capitalisation of RM187.5 million.