June 9, 2022

The Stock Exchange recently disclosed that David Webb increased his holdings of nearly 8% dividend yieldHong Kong Economic Times (0423.HK)and in fact he stillInternational Home Retail (1373.HK)andGiordano (0709.HK)These two major shareholders of local companies with a dividend yield of more than 10%, the above three stocks can be suitable options for investors to create their own dividend income portfolio.

1. Hong Kong Economic Times

According to information from the Stock Exchange, David Webb increased his holdings of regarding 60,000 shares in Hong Kong Economic Times on May 30, with an average price of 1.14 yuan per share, and his shareholding ratio increased from 8.98% to 9%. Since October last year, David Webb has increased his positions, and his shareholding ratio has increased by 0.44% from the original 8.56%. After the increase, David Webb remains the company’s fifth largest shareholder.

Economic Times is a multi-media company whose main businesses include publishing Hong Kong Economic Times, magazines and books, providing e-financial information and property market information services, as well as providing training courses and operating a quality life website. The company’s profit in the 2020/21 fiscal year tripled to 30.92 million yuan, but it was still lower than the 71.52 million yuan in 2018/19 before the outbreak of the epidemic and social movement.

As of September 2021, the interim profit was 23.16 million yuan, down 19.4% year-on-year, but according to the trend, the total profit for the year is expected to record a year-on-year recovery. It is worth noting that since its listing in 2005, the Economic Daily has been able to maintain its distribution twice a year. The current dividend rate is nearly 8%. It is believed that the annual dividend rate can also be maintained at a similar level.

2. International Home Furnishing Retail

David Webb is the major shareholder of Japantown’s parent company, International Home Furnishing Retail. Currently, according to the stock exchange, he holds more than 50 million shares in March 2021, with a shareholding ratio of regarding 7%. International Home Retail is a high-dividend stock that continues to increase its payout.

Since its listing in 2014, the company has also increased its dividend for seven consecutive years, and in the last distribution of interim and final dividends, additional special dividends were distributed, totaling 0.299 yuan. According to the company’s closing price of 2.9 yuan on June 8, the company’s dividend yield is as high as 10.3%. Even following deducting the special special interest, the company’s dividend yield is still higher than 7%.

In terms of business prospects, the repeated epidemics in Hong Kong are beneficial to Japantown, which mainly focuses on household and department stores. In addition, the government has introduced consumer coupons in stages. The company’s business is expected to maintain growth, and its dividend distribution prospects are also optimistic.

3. Giordano

David Webb is the second largest shareholder of Giordano. According to information from the Stock Exchange, he held more than 79 million shares of Giordano in August 2021, accounting for 5.01%. Giordano is a company engaged in the retail and distribution of Giordano brand clothes. Its business is distributed in China, Hong Kong, Macau, Taiwan, Singapore and Australia. It is already an established local stock. Despite a loss in 2020, the company still has distributions, which it has been able to maintain annually since 1999. Giordano’s current dividend yield is 10.4%, but the market estimates that the dividend yield will drop to 7.4% this year, but it is still an ultra-high dividend stock.

In terms of business prospects, as the epidemic subsides and the global economy recovers, the company will successfully turn losses into profits in 2021. Although the epidemic broke out in China, Hong Kong and Taiwan, and the closure and control measures in Shanghai lasted for 2 months, which had a certain impact on the company’s business, Southeast Asia and Australia actually contributed the most to segment profits last year. At that time, China, Hong Kong and Macau business It also recorded a loss, so Giordano’s business prospects this year can continue to be optimistic.

In fact, Giordano’s sales in the first quarter increased by 5.5% year-on-year to 917 million yuan, which was also due to the significant improvement following the relaxation of social distancing and travel restrictions related to the epidemic in markets such as Southeast Asia.

In addition, at the beginning of the outbreak of the epidemic in Hong Kong in March, Giordano pointed out earlier that it planned to close 5-7 branches before the third quarter, which is expected to control costs. In addition, the company opened a retail store in Egypt in mid-May, and overseas investment may help diversify business risks.

Giordano announced a short-term suspension on the 8th of this month, and the market estimates that it may involve privatization or selling. Sino Wealth International Limited, a subsidiary of the Chow Tai Fook family, holds 24.37% of the shares. David Webb’s stake rose to 5.01% following he increased his holdings in August 2021.

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