Actually issuing bonus shares add "no financial value" to the company except "incurring administration costs". All shareholders are fairly and proportionately get their bonus shares. As the total number of ordinary shares are increased, the NAV per share and future EPS would be diluted as a result.
Yet this policy is highly appreciated by shareholders and market investors. Some even say that issuing "1 for 10 bonus shares every year" is equal to paying a cash dividend of 10%p.a.(i.e. with 10%p.a. dividend yield)!
If 001.HK or 016.HK are also willing to "issue bonus shares every year", I think significant market money would immediately buy them and their market prices must be higher than now.
I suggest those "profitable non blue chips" such as 626.HK and 900.HK should also consider to issue bonus shares besides cash dividends, ... in order to stimulate the market price to more reasonable level, ... say PE ratio around 10~12 for these good managed financial institutions.
Too much words ... Just want to share my little thinking ... Please forgive me!
The policy of paying bonus shares is "clever".
回覆刪除Actually issuing bonus shares add "no financial value" to the company except "incurring administration costs". All shareholders are fairly and proportionately get their bonus shares. As the total number of ordinary shares are increased, the NAV per share and future EPS would be diluted as a result.
Yet this policy is highly appreciated by shareholders and market investors. Some even say that issuing "1 for 10 bonus shares every year" is equal to paying a cash dividend of 10%p.a.(i.e. with 10%p.a. dividend yield)!
If 001.HK or 016.HK are also willing to "issue bonus shares every year", I think significant market money would immediately buy them and their market prices must be higher than now.
I suggest those "profitable non blue chips" such as 626.HK and 900.HK should also consider to issue bonus shares besides cash dividends, ... in order to stimulate the market price to more reasonable level, ... say PE ratio around 10~12 for these good managed financial institutions.
Too much words ... Just want to share my little thinking ... Please forgive me!
^_^
恕我坦白講，只是數字遊戲，對公司冇實際盈利幫助，只是股民受，有利股價而矣，這亦反影股民平均質素並不成熟。
回覆刪除Exactly!
刪除^_^
It is negative effect，as bonus shares incurrs admin cost....
回覆刪除相對只是小數目而矣。
刪除