HONG KONG - Highway Holdings Limited (NASDAQ:HIHO) has announced a cash dividend of $0.05 per common share, payable on May 3, 2024, to shareholders on record as of April 22, 2024. The company's chairman, president, and CEO, Roland Kohl, expressed confidence in the firm's financial stability and growth prospects, anticipating increased business momentum in 2024 based on customer and partner feedback.
Highway Holdings operates as an international manufacturer, producing a range of parts for major equipment manufacturers, with administrative offices in Hong Kong and manufacturing facilities in Yangon, Myanmar, and Shenzhen, China. The company's decision to issue a dividend reflects its commitment to delivering shareholder value, a practice that has been consistent over time.
The announcement is based on a press release statement and should be considered in the context of risks and uncertainties that could affect the company's future operations and financial performance.
These potential risks include economic conditions, market competition, and political and technological changes, which are detailed in the company's filings with the Securities and Exchange Commission. Investors are encouraged to review these documents for a comprehensive understanding of the factors that could influence Highway Holdings' business and financial results.
InvestingPro Insights
Highway Holdings Limited (NASDAQ:HIHO) continues to reinforce its commitment to shareholders with its recent dividend announcement. A deeper look into the company's financial health through InvestingPro data reveals some interesting insights. With a market capitalization of $9.21 million, the company is positioned in the market as a smaller cap stock. Despite a negative revenue growth of -26.69% over the last twelve months as of Q3 2024, the company has managed to maintain a gross profit margin of 22.42%, which is indicative of its ability to control cost of goods sold relative to sales.
One of the key InvestingPro Tips for HIHO is that the company holds more cash than debt on its balance sheet, which is a positive sign for investors looking for financial stability. Additionally, the company pays a significant dividend to shareholders, with a dividend yield of 9.59% as of the latest data, which is quite attractive for income-seeking investors. It's noteworthy that the stock generally trades with low price volatility, suggesting that it might be a suitable investment for those seeking less turbulent market movements. However, it's important to consider that the company has not been profitable over the last twelve months.
For investors looking to delve deeper into Highway Holdings' financials and future prospects, there are more InvestingPro Tips available. To explore these further, visit InvestingPro and consider using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. As of now, there are a total of 4 additional InvestingPro Tips listed for HIHO, which can provide more nuanced guidance for potential investment decisions.
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