MIA hikes interim dividend amid record H1 profits

 

The MSE Equity Price Index rose by 1.08% to an almost five-month high of 3,808.009 points as the gains in ten equities outweighed the declines in MIDI and Trident. Meanwhile, three equities closed unchanged as today’s total trading activity in local equities today amounted to €0.45 million. Download today’s Equity Market Summary.

Malta International Airport plc surged by 4.4% to an eight-month high of €5.95 across twenty trades amounting to 40,000 shares. Following the close of trading, MIA published its interim results for the six-month period ended 30 June 2024. Revenues reached a record (at interim stage) of €64.4 million, which is 20% higher than the previous record of €53.6 million generated in the same period in 2023. The growth in income reflects the record passenger movements of 4.07 million between January and June 2023 (Jan-June 2023: 3.43 passenger movements), which translated in ‘Aviation’ revenue of €44.2 million (+21%), as well as higher revenues generated from the ‘Retail and Property’ segment, which amounted to €20.1 million (+19%). Total operating costs increased by 15.1% to €30.1 million, thus leading to an operating profit (EBIT) of €34.5 million. MIA reported a record interim net profit of €22.1 million. Considering the Group’s strong financial performance, the Board of Directors declared a net interim dividend of €0.06 per share, which is double the interim dividend paid in 2023. The dividend is payable by not later than Friday 13 September 2024 to all shareholders as at close of trading on Tuesday 20 August 2024.

Also among large companies by market value, Bank of Valletta plc moved 0.6% higher to the €1.57 level over eight trades totalling 82,000 shares.

Also in the banking sector, HSBC Bank Malta plc rose by 2.4% to reach a fresh six-year high of €1.74 over five deals amounting to 5,819 shares. Yesterday, HSBC Malta published its interim results for the six-month period ended 30 June 2024. Net interest income rose by 19% to €106.6 million driven by the strong growth in gross interest income which offset the higher interest expense. Meanwhile, non-interest income surged by 27.3% to €21.1 million mostly driven by an improved performance of HSBC Life Assurance (Malta) Ltd.   The financial performance was also positively impacted by a net reversal of expected credit losses of €7.0 million. HSBC reported a net profit of €50.7 million which translates into an annualised return on average equity of 18.3% (H1 2023: 16.2%). The Board of Directors declared a net interim dividend of €0.065 per share, which represents the highest interim dividend paid by HSBC Malta in over 10 years. The dividend is payable on 17 September 2024 to all shareholders as at close of trading on 13 August 2024.

Mapfre Middlesea plc gained 0.8% to the €1.33 level on a single trade of 2,430 shares.

AX Real Estate plc increased 4.8% to a one-month high of €0.48 on two deals amounting to 5,067 shares.

A single trade of 30,000 shares pushed the share price of Hili Properties plc 2.7% higher to the €0.188 level.

Also in the property sector, Malita Investments plc gained 5.3% to the €0.48 level over four deals amounting to 15,050 shares.

International Hotel Investments plc increased by 0.5% to the €0.382 level across four trades amounting to 7,241 shares.

Plaza Centres plc reversed some of yesterday’s losses as it rose by 1.8% to the €0.56 level on two trades totalling 6,500 shares. Yesterday, Plaza published its interim results for the six-month period ended 30 June 2024. Revenue increased by 4.4% to €1.57 million but was largely offset by an increase in operating costs. As a result, operating profit increased by 2% to €0.85 million. Overall, Plaza reported a net profit for the period of €0.59 million. The company’s equity base expanded by €0.25 million to €27.5 million which translates into a net asset value per share of €1.077. The Board of Directors declared an unchanged net interim dividend of €0.0098 per share, payable to shareholders as at close of trading on Monday 12 August 2024. The dividend represents a payout ratio of 43% and will be paid on Wednesday 28 August 2024.

M&Z plc moved 2.7% higher to the €0.565 level on one deal of 8,250 shares.

On the other hand, MIDI plc slumped by 8.0% to the €0.23 level across four trades amounting to 48,020 shares.

Also in the property sector, Trident Estates plc decreased by 0.8% to the €1.19 level on two deals totalling 2,950 shares.

Meanwhile, APS Bank plc traded flat at the €0.48 level as 48,823 shares changed hands.

Santumas Shareholding plc closed unchanged at the €1.18 level on two deals amounting to 12,235 shares.

The Convenience Shop (Holding) plc held the €1.00 level over trivial volumes.

The RF MGS Index rose for the fourth consecutive session increasing by 0.20% to a fresh year-to-date high of 903.517 points, as the euro area sovereign bond yields continued to fall with the German 10-year bund yield dipping below 2.3% for the first time since the end of March 2024. Similarly, the US 10-year treasury hovered around an almost six-month low of 4.05%. Yesterday, the US Federal Reserve opted to hold the federal funds rate unchanged as expected. In the post-meeting statement, policymakers stated that there has been some progress toward reaching the 2% inflation target. Furthermore, it was noted that the economy and the labour market remained resilient despite the restrictive rates. In this respect, the Chair Jerome Powell indicated that inflation is falling at a good pace and the appropriate point for dialling back interest rates is getting closer. Moreover, Powell said that interest rate cuts could be on the cards for the next monetary policy meeting next September if upcoming data continues to be favourable. Elsewhere in the UK, the Bank of England opted to reduce its base rate to 5.00% after it had been held unchanged at 5.25% since August 2023. The Monetary Policy Committee highlighted that it expects headline inflation and inflationary expectations to fall. Furthermore, it was noted that loosening the policy stance was merited as the elevated rates were slowing economic growth and softening the labour market. Nonetheless, the Bank of England stated that it will be cautious about reducing interest rates further until there is more confidence that inflation will remain subdued.

 

This report contains only public information and is not to be construed as investment advice or an offer to buy or sell securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company