BKI Investments (ASX:BKI) shares at 1-year price peak on ASX

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BKI Investments (ASX:BKI) shares at 1-year price peak on ASX

ASX:BKI, BKI Investments Limited, ASX, financial stocks
Image source: © Krisdog | Megapixl.com

Highlights

  • BKI share price reaches its highest in last 52 weeks on ASX.
  • BKI reports NOPAT increase of 104%, excluding special dividends, marking record profits.
  • BKI Investments declares an interim dividend of 3.50cps, up 75% from last year.

ASX listed Investment company, BKI Investments Limited (ASX:BKI) shares have scaled new heights today reaching their 52-week high price of AU$1.685 each as of 11:45 AM AEDT. The shares have gained over 9% in a year’s time. However, today’s price gains are visible after BKI declared a record H1-FY22 result and a 75% higher dividend. 

What has BKI achieved in H1-FY22?

  • BKI Investments has reported strong growth across key reporting metrics in H1-FY22.
  • BKI’s Investment revenue has grown 90%, alongside an operating revenue growth of 99%.
  • BKI’s Net operating profit after tax (NOPAT) has risen by 104%, excluding special dividends received.
  • As a result, BKI has reported an earnings per share growth of 103%, alongside a dividend per share growth of 75%.

Why has BKI’s performance remained strong in H1-FY22?

  • BKI saw company profits improve and dividends from Australian equities.
  • BKI’s financial results in H1-FY22 have been boosted by higher dividends from major holdings including BHP Group, Rio Tinto, NAB, FMG and others.
  • BKI also booked profits from sale of Endeavour Group shares, received as a demerger dividend from Woolworths.
  • It also realised gains from sale of Transurban Rights, received under entitlement offer for Westconnex Assets.
  • BKI also received AU$26.2 million recorded as special dividend income in H1-FY22, from Rio Tinto, Suncorp Group, Milton, Telstra, and others.

BKI’s road ahead-

In FY22 though BKI is positive on revenue growth of its portfolio companies, it is also worried about unexpected Covid related costs eating up margins. However, BKI claims that it will maintain its sustainable dividend stream in the long-term. BKI is now focussing on company’s having pricing power and the ability to pass it on to customers while ensuring profitability, earnings and dividend growth.

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