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Dropped due to dividends falling from 6.6c to 2.25c, caused by the huge CAPEX required for the Sg Rasau project - expected to complete in Q1 2027. Taliworks' business is mainly water treatment, highway operation, waste management and solar farm, which is not affected by the war. Once Sg Rasau project is completed, cash flow will normalize, dividends go back up and so will the share price. At the current price of 0.42 and if dividend goes back up to 0.04 in 2027, the yield will be 9.5%!
Actually 24c was the multi-year low and was an easy buy. The CEO also shared a lot during the recent presentation that would’ve given investors the confidence on the company’s future.
Investors are selling because the dividend has been reduced to 2c. And that's because they've shifted focus to growth - which they've stated clearly in their AR. Their FCF, which they're paying dividends from, has been reduced due to the CAPEX for the Sg Rasau project and will continue until Q1 of 2027. It's actually a great time to collect because it's at a multi-year low.