WiseVest - Another aviation play: Inter Roller Engineering

Dividends are coming in soon for this engineering company - Inter Roller. With the final dividend at 0.05 representing a 3.125% yield according to last done price of S$1.60, this company should be worth around S$2.00 at 19.2x FY2005 earnings. Total dividend for the year 2005 stands at 7.5 cents which should translate to around 4.6% yield.

The company reported a 45% increase in turnover from 2004 to 2005 and a 69% jump in net profit after tax. With a record order book and the expected increasing investment by country government in aviation and infrastructure, it should be expected to gain more contracts especially in China and India. The company's financial statement looks good and future developments for the company should be beneficial for its share price since it has shown to be able to curb increase in costs even while doing more projects.