IC Market Espresso 15 Jun 2023

Cinkarna Celje Approves No Dividend Payment

Cinkarna Celje held the GSM yesterday in which the shareholders approved no dividend payment. Further, we note that the Association of Small Shareholders of Slovenia announced a lawsuit against the non-voting of the dividend resolution and against the decision to grant discharge to the management and the supervisory board.

We emphasize that initially Cinkarna proposed no dividend payment and got two dividend counterproposals, which amounted to EUR 3 and 3.2, implying a yield of 11.7% and 12.5%, respectively.

Cinkarna initially proposed no dividend payment as the Company is a beneficiary of aid with the goal to mitigate the effects of the energy crisis (ZPGOPEK). According to the aid, the company that claimed aid for the year 2023 must notify the authority no later than two months after the payment of profits, purchase of own shares, payments or bonuses, etc. In this case, the company must repay the funds received, which would be a decision of the authority. Consequently, the loss of the aid would mean greater material damage to Cinkarna (aid is currently projected at EUR 5 – 7m)

In the graph below, we are bringing you a historical overview of the company’s dividend per share and dividend yield.

Dividend per Share (EUR) and Dividend Yield (%) (2012 – 2023)

Source: LJSE, InterCapital Research

Span Approves EUR 1.33 DPS

At the share price before the proposed dividend, this would amount to a DY of 2.1%. The ex-date is set for 19 June 2023.

Span published the resolutions of its GSM held yesterday, 14 June 2023. Among the decisions, the most interesting one is the approval of the proposed dividend payment from the profits the Company made in 2022. According to this decision, a total of EUR 2.6m will be paid out as dividends, representing a 42% payout ratio. This would yield a dividend of EUR 1.33 per share, representing a dividend yield of 2.1%.

This also follows the Company’s dividend payment policy the Company published in 2022. According to it, from 20% to 50% of the consolidated profit will be paid in the form of dividends. Of course, the policy is also subject to several conditions, including the Company’s development plans, the situation in the capital market, net profit, and revenue levels/growth, etc.

Finally, the ex-date is set for 19 June 2023, while the payment date is set for 3 July 2023.

Ericsson NT Approves EUR 6 DPS

At the price before the proposal, this would amount to a DY of 2.5%. The ex-date is set for 19 June 2023.

At the GSM meeting held yesterday, 14 June 2023, Ericsson NT shareholders voted for the approval of the distribution of profit. According to the resolutions released by the Company, the 2022 net profit of EUR 19.6m will be transferred into retained earnings, while EUR 6 DPS will be paid out from the 2021 and 2022 retained earnings. Finally, the dividend payment represents a dividend yield of 2.5%.

The ex-date for the dividend is set for 19 June 2023, while the payment date is set for 11 July 2023. Below we provide you with a historical overview of the dividends per share and dividend yields of the Company.

Dividend per Share (2013 – 2023) (EUR)

Dividend Yield (2013 – 2023) (%)

Source: ZSE, InterCapital Research