DIVIDEND & OTHER PAY

OUT
Fu Wang Ceramic
Fu Wang ceramic-Profile
DPS(Dividend per share) DPR(cas Market
NAV(pe Sponsors(%
Year EPS h OCF/share FCF/share P/E price(year Turnover Growth
Cas Total r share) )
div/EPS) end)
h Stock Right DPS

2004 6.35 5%     5 79% 128.91 -2.07 16.38 104.013 137.3 54.56% 293,511,379 -6%

2005 7.09 6%     6 85% 77.12 -3.07 11.57 82.0313 143.71 54.51% 327,046,056 10%

2006 7.09 7%     7 99% 140.99 12.44 10.12 71.7508 148.67 54.50% 342,032,750 4%

2007 2.42 5%     5 207% -59.98 -19.51 31.71 76.7382 148.82 54.48% 304,433,650 -12%

2008 (2.48) 5%     5 -202% -74.29 -44.05     144.07 54.65% 296,667,642 -3%

 Dividend Policy-Fu Wang

From 2004 to 2008, Fu Wang ceramic has distributed only cash dividend respectively
5%, 6%, 7%, 5% and 5%. By analyzing the trend we can say that they do follow sticky
dividend policy as because rate is almost fixed in between 5% to 7%.
 Smoothen or non smoothen

To analyze smoothen , we need to observe co-relation between dividend with EPS. In

case of Fu Wang in 2007 & 2008 their EPS came down to 2.42 and -2.48 respectively,
but still the company maintained 5% cash dividend in both years and for that reason Fu
Wang’s dividend policy is non smoothen.
 Relation between OCF/Share & FCF/Share

Year Cash dividend OCF/Share FCF/Share

2004 5% 128.91 -2.07

2005 6% 77.12 -3.07

2006 7% 140.99 12.44

2007 5% -59.98 -19.51

2008 5% -74.29 -44.05

Fu Wang ceramic has maintained Positive OCF/share from 2004 to 2006. But as the
company is investing heavily ,they had negative FCF/share. Also, they have paid cash
dividend at 5% to only free float share holders from 2005 to 2008.
 Relationship between NAV & growth rate

Year NAV(per share) Growth

2004 137.3 -6%

2005 143.71 10%

2006 148.67 4%

2007 148.82 -12%

2008 144.07 -3%

Though growth rate was positive in 2005 & 2006 and there was negative growth in
2007 and 2008 but the company maintains a steady NAV/share which is 144.41.
 Sponsors Vs Free float

Year Sponsors(%) Free Float(%)

2004 54.56% 45.44%

2005 54.51% 45.49%

2006 54.50% 45.50%

2007 54.48% 45.52%

2008 54.65% 45.35%

Sponsors have almost 54% share which reflects that chances of manipulation is low.
THAN
KS