Zenner Metering Technology (Shanghai) Ltd.’s (SZSE:301303) dividend will be increasing from last year’s payment of the same period to CN¥0.35 on 7th of June. The payment will take the dividend yield to 1.9%, which is in line with the average for the industry.
View our latest analysis for Zenner Metering Technology (Shanghai)
Zenner Metering Technology (Shanghai)’s Dividend Is Well Covered By Earnings
Unless the payments are sustainable, the dividend yield doesn’t mean too much. Based on the last payment, Zenner Metering Technology (Shanghai) was earning enough to cover the dividend, but free cash flows weren’t positive. We think that cash flows should take priority over earnings, so this is definitely a worry for the dividend going forward.
Looking forward, EPS could fall by 10.7% if the company can’t turn things around from the last few years. If the dividend continues along recent trends, we estimate the…
