Classic Scenic up 4% after Edge Research says outlook upbeat

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KUALA LUMPUR (Oct 27): Wooden picture frame manufacturer Classic Scenic Bhd rose 3.8% after Edge Research said the company has an upbeat outlook.

At 12.30pm, Classic Scenic increased five sen or 4% to settle at RM1.34, with 853,500 shares changing hands.

“Outlook is more upbeat, going forward. Classic Scenic is expected to benefit from the recovery in the US market, as well as stronger US dollar vis-à-vis the ringgit.

“Classic Scenic may appeal to yield-seeking investors. The company has distributed most of its earnings as dividends, since 2009,” Edge Research said.

North America is Classic Scenic's largest export market, accounting for 78% of sales in financial year ended December 31, 2013 (FY13). This is followed by Australia (9.8%) and the domestic market (11.8%).

In FY13, Classic Scenic distributed total dividends of eight sen per share, translating into a yield of 6.6%, according to Edge Research's report.

The report is published in The Edge Financial Daily and TheEdge Markets.com today.