Profit at Transjamaican Highway jumped a solid 33 percent before tax for the quarter ending March this year, to US$12.1 million, from US$9.1 million for the same period in 2024. The strong performance was largely driven by increased revenues of US$22.5 million, up 14 percent over the US$19.8 million recorded in the March quarter of 2024.
Profit after the provision for taxation of US$3 million for the quarter amounts to US$9.1 million, an increase of 32 percent over the net profit of US$6.9 million for the 2024 first quarter.
Although profit after tax was $9 billion, cash generated from operating activities amounted to a healthy $15 billion.
Earnings per share rose to US$0.0007, with ICInsider.com forecasting J$0.52 per share for the full year and putting the PE of the stock at an attractive 7 times the current year’s earnings, compared to 13.3 for the market average.
The company paid an interim dividend of J$0.1258 in April this year. A second dividend payment is expected later in the year, which should take the full year amount to 25 cents, with a dividend yield of nearly 7 percent. Most importantly, according to the prospectus issued in 2020, the dividend payment as a percent of profit ranges from 43 percent in the earlier years up to 2025, to a high of 85 percent, from 2026 to 2034. If the company adheres to this projection, dividends should double next year, and so should the stock price, all things being equal.
With these results and prospects for continued increased revenues, profit and good dividend payments, Transjamaican Highway is crowned an ICInsider.com BUYRATED stock.