Wed. Sep 27th, 2023
An Analysis of APT Satellite Holdings Ltd’s Dividend Performance and Sustainability

APT Satellite Holdings Ltd recently announced a dividend of $0.05 per share, payable on October 11, 2023, with an ex-dividend date set for September 18, 2023. In light of this upcoming payment, let’s take a closer look at APT Satellite Holdings Ltd’s dividend history, yield, and growth rates.

APT Satellite Holdings Ltd is an investment holding company that primarily engages in the maintenance, operation, and provision of satellite transponder capacity and related services, satellite-based broadcasting and telecommunications services, and other services. The company generates revenue from customers in Hong Kong, Greater China, Southeast Asia, and other regions.

In terms of dividend history, APT Satellite Holdings Ltd has maintained a consistent dividend payment record since 2020, distributing dividends on a bi-annual basis. The company’s dividend yield currently stands at 10.81% for both the trailing 12 months and the forward 12 months, indicating an expectation of consistent dividend payments in the near future. Over the past three years, the company has achieved an annual dividend growth rate of 16.80%, which increases to 22.20% over a five-year horizon. Additionally, APT Satellite Holdings Ltd’s annual dividends per share have grown at an impressive rate of 17.30% over the past decade.

Considering the dividend yield and growth rate, the 5-year yield on cost of APT Satellite Holdings Ltd stock is approximately 29.46%.

To assess the sustainability of the dividend, it is essential to evaluate the company’s payout ratio. APT Satellite Holdings Ltd’s dividend payout ratio as of June 30, 2023, was 0.95, which may suggest that the dividend is not sustainable. However, the company’s profitability rank is 8 out of 10, indicating good profitability prospects. APT Satellite Holdings Ltd has reported positive net income for each year over the past decade, further solidifying its high profitability.

Looking at growth metrics, APT Satellite Holdings Ltd has a growth rank of 8 out of 10, suggesting a positive growth trajectory compared to its competitors. The company’s revenue per share and 3-year revenue growth rate indicate a strong revenue model, although the average growth rate of -3.80% underperforms compared to global competitors. Similarly, the company’s earnings per share growth rate over the past three years has averaged -13.80%, underperforming approximately 79.54% of global competitors. The 5-year EBITDA growth rate of -16.50% also underperforms compared to approximately 90.52% of global competitors.

In conclusion, while APT Satellite Holdings Ltd has shown impressive dividend growth and profitability, concerns may arise about the sustainability of its dividends due to the high payout ratio and underperformance in revenue and earnings growth. Investors should closely monitor these metrics when making investment decisions.