(Sept 4): Nam Lee Pressed Metal Industries’ business of making steel and metal parts is not growing at an exciting pace. In fact, as Phillip Capital analyst Richard Leow points out in an Aug 15 note, the company’s business might be considered “mature”. However, Leow says Nam Lee’s earnings are also “stable”. “We view Nam Lee as a yield play.”
Three quarters into the current FY2017 (the company has a September year-end), Leow is confident that Nam Lee can maintain last year’s dividend payout of two cents a share. Based on the stock’s closing price of 37 cents on Aug 28, this translates into a healthy yield of 5.4%.