Beximco Pharma Discussion Threads

[pharma giles] 07/8/2019 12:36

If they were to do 30% of EPS (ok may be a mix of cash and shares) we'd be looking around 2p a share dividend, and thus 5% yield on today's share price Profits are growing so the % yield (based on buying today) should increase each year (as should the SP). I do expect the share price to recover however when full year results are released in Nov, + when they announce their final dividend. Remember they only have 5 or their 15 US approved products on the US market at present (with the 5th only recently being launched, so not included in their recent financial results). The remainder will be launched in the next 12 months. We can buy 2 shares on AIM for the price of a single share bought on the Dhaka - thus effectively we will get 2 divi payments for every one they get in Bangladesh, for the same outlay.. It is a long term hold here though

[zcaprd7] 07/8/2019 11:14

Inflation has averaged 8% a year over the last 10 years in Bangladesh... Do they still do the pointless stock dividends?

[outsizeclothes.com] 18/7/2019 17:08

18 July 2019

BEXIMCO PHARMACEUTICALS LTD.

Dividend and Tax legislation changes affecting Bangladesh companies

Beximco Pharmaceuticals Limited ("Beximco Pharma", "BPL" or "the Company"; AIM Symbol: BXP, LEI No. : 213800IMBBD6TIOQGB56), the fast-growing manufacturer of generic pharmaceutical products and active pharmaceutical ingredients, today announces that new legislation in Bangladesh, which has been introduced by the new Finance Act with effect from 1 July 2019, will affect the Company's dividend policy with respect to future dividend declarations.

The Bangladesh Government has introduced a law which, in effect, means that all listed companies will have to pay at least 30 percent of their net after-tax profit of any income year as dividends to their shareholders or face an additional tax charge of 10 percent on the total amount of earning retained in that income year. Dividends may be paid in cash or stock, however, the law provides that if the stock dividend exceeds the cash dividend, an additional 10 percent tax shall be chargeable on the amount of stock dividend declared.

The Company will review the legislation in detail and consider how to best manage the cash flow to deliver long-term shareholder value. The Company policy will be decided in due course.

[sayuri92] 13/7/2019 11:50

There is no difference in dividend per share but if you were a holder last year, for the dividend, you may have noticed that the Bangladesh withholding tax increased from 15% to 20% to that in the previous year.

[winnings1] 13/7/2019 07:28

I can not see why the dividend should be different, the only difference will be that
the Bangladesh currency moves against UK currency between the Company's announcement of the dividend figure/amount and the translation in UK currency at the time of payment.
Check with the Company's UK brokers/advisers if you have doubts. If you do, please let us know their comment.

[zcaprd7] 12/7/2019 13:00

I thought the UK shares got lesser dividends? They may have fixed that though, been out of these for a while, and sniffing around them again...

[penpont] 11/7/2019 14:39

Have found a recent (3 Jul 19) 33 page note on BXP from house broker share price Angel on the Research tree website. They initiate with a TP of 61p. Non-subscribers should I think be able to read the summary though free registration may be needed:

[winnings1] 10/7/2019 14:26

Our shares can just be traded in London, not in Dhaka, and that is the difference.
To my best knowledge we get the same dividend as the shares traded in Dhaka.
In short, at current price (36p) the shares here are fascinatingly cheap, less than half the price of those traded in Dhaka. Same shares (same stakes) in the same Company. I have accumulated quite a few.

[zcaprd7] 10/7/2019 10:48

https://docs.google.com/spreadsheets/d/14OPKxgw5GEHfwnujQ9Zo_kaySQcRkATcE01H4KpI1LE/edit?usp=drivesdkThat's the discount link.I thought the dividends arrangement between the two sets of share classes were different?

[winnings1] 09/7/2019 10:25

Share price in Dhaka is more than twice the share price here (here currently at a ridiculously low of 35p). What we are seeing here is Momentum Selling, i.e. small investors not fully understanding the Company simply selling because others are selling. The shares here are no different from the shares traded in Dhaka, stakes
in the same Company, entitlement to the same Dividends (which are to grow substantially as the Company's performance is excellent).
We have to be close to the bottom now and may soon see a turnaround into Momentum Buying, taking the share price up to sensible levels.

[outsizeclothes.com] 08/7/2019 23:56

Their debt level could be a worry if they don't show signs of paying it down quite quickly. The high debt could put the divvy at risk.
Potential investors here in the UK could also be watching for news of last year's takeover being integrated ok before moving off the fence.

[sharpish] 08/7/2019 19:50

Have been a holder for several years, it's a frustrating stock to own since it has always traded at a discount to home market and often does not reflect the true potential of the business.

Originally bought in at a P/E of 4 in 2013 and it did nothing for years then tripled in 2016 when it got first FDA approval. Since then has been growing solidly, particularly overseas, yet share price has halved - unfortunately it does not take much volume to move it either way. Strong stomachs should prevail in the long run.

[sayuri92] 08/7/2019 19:06

The shares are identical with equal voting rights.

[zcaprd7] 08/7/2019 14:13

I don't believe the shares are completely identical between UK and local, in terms of voting rights perhaps?Also, there was a handy Google sheet link on here that worked out the currency discrepancy, anyone have that?

[3800] 06/7/2019 12:48

I recieved 0.9225p dividend a share in feb I cannot find any interim payment. Can anyone find a graph of the Dhaka share price which could be superimposed over the UK price to give a comparison of the share price discount all I can find is this hxxps://www.dsebd.org/displayCompany.php?name=BXPHARMA

[blobby] 06/7/2019 09:57

hmmm, I think we may loose out on dividends as there are extra costs for UK holders. I'm a little rusty on this one though so I'm appreciate any info for anyone holding these for a while.

[winnings1] 05/7/2019 20:56

If there was something very wrong with the company, then the share price in Dhaka would not be 78.5p, which is about twice the share price here. We cannot trade our shares in Dhaka, but they are in all other respects the same shares in the same company.

[mfhmfh] 05/7/2019 16:27

either something very wrong with the company which PIs aren't aware of...or a real bargain.

IMHO.

[sayuri92] 05/7/2019 12:25

No it is Bangladesh exchange control rules. They don't allow arbitrage of the shares between London and Dhaka.

[bobdouthwaite] 05/7/2019 12:12

Any ideas on why the share price is falling? Could it trade war-related and if so how?

[winnings1] 05/7/2019 11:56

Beximco Dhaka share price 78.5p, share price here today 36.5. Same Company,same Company's shares - less than half price in this country,that can't be expensive!

[winnings1] 21/6/2019 15:09

Three comments on this stock currently at 39p:
Cheap, Cheap, Cheap, and in that following order.

[outsizeclothes.com] 31/5/2019 02:14

The share price here is also reflecting a (slow) decline since March in Ďacca. (90T to 75T this week)

[outsizeclothes.com] 30/5/2019 14:47

Nothing that a buy order won't reverse. I put 2 in just now for daughters ISAs and the online quote rose 3p

[zcaprd7] 30/5/2019 14:07

Any news? This drop seems harsh?