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As mentioned in the recent AGM, there is no plan of bonus issue so soon. But perhaps a change in CEO might change the way of doing things now, we just have to wait.
Bonus issue will chg eps, let say 1stock earning 1 cent, if 1stock free 1 stock will be 2 stock 1 cents which also equal to 1 stock 0.5 cents. After bi, if company revenue growing, the eps will be back to normal.
As compare to public bank, maybank is lesslikely to give bi but they give higher of dividend. while, pb is morelikely to do bonus issue, the best part is shareholder can get more share to earn dividend and long term capital gain.
Bi just like spilting 1x rm10 into 10x rm1. My portfolio eps has no change as i see, it just becomes smaller unit only. Even without it so long as the earning to shareholders are growing it does not matter in my opinion.
You can check public bank's bonus issue for case staudy. Before bonus issue one share earning is around 35 cent, after bi the eps is droping until 7 cents per share becuase they annouce 1 share free 4 share, so previous eps:35 divide by 5 will become 7eps and 7 eps is the current eps showing on klse.
If you are short term investor you wont care about the share amount that you are holding, if you are long term investor and you are buying a growth stock then the eps will be important for you.
As you can check on public bank eps history record and you will see it is actually growing from the past 20 year.
Eps growth mean company can make more money. So the share amount you are holding right now will increase value in future + div.
Again .. BI or not. There are 2 schools of thought. Depending on the type of investor you are. Long term or short term ( and so many others in between )There are pros & cons to it. No one rule fits all.
Diok 4b i am happy to hold my dbs singapore and all my msia bank shares for years when seeing the eps and dps to continue uptrend mode. Bi or not i think has no impact to me as my holding oeriod is indefinite so long as the company fundamental economics are intact and improving over the years.
