- TransJamaican Highway Limited (TJH) has announced an exciting development for its shareholders. On September 26, 2023, the company's Board of Directors declared an interim dividend payment of JMD$0.1866 per share.
- This dividend payment will be extended to shareholders on record as of the close on October 10, 2023, with the actual payment slated for October 25. Potential investors should note the ex-dividend date is set for October 09, 2023.
- As of September 26, 2023, the dividend yield stood at an impressive 7.3%, notably higher than its average yield of 6.3% since its listing on the stock exchange.
- This dividend declaration can be attributed to the company’s strong performance which came on the back of a significant reduction in operating expenses since the acquisition of Jamaican Infrastructure Operator (JIO), coupled with increased revenues driven by rate adjustments and increased traffic flow.
- That said, the company has reported a whopping 387% increase in year-to-date profit, and its cash generated from operations has surged by 71%. This financial robustness places TJH in a strong position in the market and augurs well for both current and potential investors.
- TJH's stock price has surged year to date by 99.3%, closing at $2.79 on September 27, 2023, with a P/E of 14.8x. Future prospects for TJH seem promising. The company aims to ride on the momentum of its recent JIO acquisition and has detailed plans to go cashless by 2028. By embracing technologies like debit and credit cards, along with the Central Bank Digital Currency (CBDC) for toll payments, TJH expects to boost operational efficiency. This digital transition can significantly reduce costs, positioning TJH at the forefront of technological advancement in the sector.
- The company remains vigilant in exploring opportunities to further its market position and extend its profitability horizon. A cornerstone of this expansion strategy involves the potential operation of the new leg of Highway 2000 East-West (‘Phase 1C’, 28km between May Pen and Williamsfield). With the recent completion of this new leg, TJH holds the right of refusal to purchase a Concession that allows it to either partially or fully own, manage, and operate this leg.