LHT Holdings

(03-03-2021, 05:18 PM)BlueKelah Wrote: not a great yield at current share price though.

Hi BlueKelah,

What is the great yield that you are looking at? At last done price of around 62cts, a 3cts dividend payout would translate into a yield of around 4.8%pa. Some blue chip stocks listed on SGX might not be able to even give you this kind of yield, consistently year after year.

(03-03-2021, 07:16 PM)ghchua Wrote:

(03-03-2021, 05:18 PM)BlueKelah Wrote: not a great yield at current share price though.

Hi BlueKelah,

What is the great yield that you are looking at? At last done price of around 62cts, a 3cts dividend payout would translate into a yield of around 4.8%pa. Some blue chip stocks listed on SGX might not be able to even give you this kind of yield, consistently year after year.

check out Hotung's great yield  
Theres quite a few small cap averaging sub 5% yields too so LHT's current yield is not that great really, just average i would say. Would be greater above 5% or 6%

(04-03-2021, 08:21 PM)BlueKelah Wrote: check out Hotung's great yield  
Theres quite a few small cap averaging sub 5% yields too so LHT's current yield is not that great really, just average i would say. Would be greater above 5% or 6%

I do agree with you that Hotung's yield is juicy but they are more of a venture capital investment firm and thus their dividend can be quite inconsistent. Look at the amount of accumulated losses they have in their group and company equity in their balance sheet statement. Their outsized dividend comes from high risk VC investments. Some might have to write off completely in some years, resulting in losses.

Besides Hotung, there are some other small cap names which consistently yielded decent dividends throughout the years, but LHT has to be one of them.

LHT@64
1H2021 result
https://links.sgx.com/FileOpen/LHT-Half-...eID=678900

https://drive.google.com/open?id=1xxczlJ...-Vwq7LBSXO

Stay home and stay safe, everyone.

LHT has reported a solid set of FY Results. Profit, EPS up > 50%. NAV/share up ~5%. Ms. Yap is running a tight ship - costs seem under control with revenues edging up. I suppose the dividend could have been raised but I can’t blame them for being a tad conservative.

These latest results, coupled with a transformative land deal, a stable management focused on cost control and a tiny debt level lead me to believe this is one of the most under-valued small caps on the SGX.

Vested, for a long time.

(26-02-2022, 02:47 PM)RBM Wrote: LHT has reported a solid set of FY Results. Profit, EPS up > 50%. NAV/share up ~5%. Ms. Yap is running a tight ship - costs seem under control with revenues edging up. I suppose the dividend could have been raised but I can’t blame them for being a tad conservative.

These latest results, coupled with a transformative land deal, a stable management focused on cost control and a tiny debt level lead me to believe this is one of the most under-valued small caps on the SGX.

Vested, for a long time.

lack of liquidity in stocks is a big problem. I am vested a small amount but wont be adding to position. Better to get high volume stocks like riverstone which also are undervalued, solid financials and have excellent business cash flows

(26-02-2022, 08:40 PM)BlueKelah Wrote: lack of liquidity in stocks is a big problem. I am vested a small amount but wont be adding to position. Better to get high volume stocks like riverstone which also are undervalued, solid financials and have excellent business cash flows

Hi BlueKelah,

I do not agree with your view. Liquidity is a double edged sword. When times are good, yes, it can move up a lot due to buying interest. But when times are bad, funds will sell and short sellers will target liquid stocks to further depress its share price.

Riverstone is not as undervalued as LHT simply based on one metric - Price to NTA.

Boss Mdm Yap, please increase dividends +1 cts for 2023, and +1 cts for 2024! restore back to 5cts!
it definitely do-able for company!

(27-02-2022, 05:23 PM)ghchua Wrote:

(26-02-2022, 08:40 PM)BlueKelah Wrote: lack of liquidity in stocks is a big problem. I am vested a small amount but wont be adding to position. Better to get high volume stocks like riverstone which also are undervalued, solid financials and have excellent business cash flows

Hi BlueKelah,

I do not agree with your view. Liquidity is a double edged sword. When times are good, yes, it can move up a lot due to buying interest. But when times are bad, funds will sell and short sellers will target liquid stocks to further depress its share price.

Riverstone is not as undervalued as LHT simply based on one metric -  Price to NTA.

Of course is a double edge sword and thats what you want if you are buying a good company. You want the capital gain to be excessive when times are good (thats when you can profit take and pare down position with the high buying volume) and you want the price to be oversold and low to have the opportunity to buy in low, also when its high volume from all the selling. 

If you look at the low liquidity unloved but undervalued stocks such as LHT, or like Captii, it is very very hard for them to move up even during good times.  the low liquidity makes establishing a position very very hard when the stock is down, and it makes selling a bit harder as well when the stock is up. 

Whilst Price to NTA is a useful metric. However the relevance depends a lot on the business that the company runs. 

For example , property companies are often discounted around 50% to their NAVs, asset light companies like those in tech are often over their NAV/NTAs. 

And you can have some companies that have very very high cash in their NTAs, however that cash might be saved up for working capital purposes and their businesses may be poor or loss making. This doesnt make them "undervalued".

Riverstone being a 1billion dollar company I think the valuation using just NTA is not that useful as they have a very big global solid high cash generating business.

LHT is a small cap so yes NTA is more relevant as being so small it is so much more risky. 

My point is valuation, should not just be as simplistic as just doing the NTA numbers. 

Its better to get those that are undervalued but also have some liquidity so that when the company does eventually do well, you will get more upside.

(28-02-2022, 06:04 PM)brattzz Wrote: Boss Mdm Yap, please increase dividends +1 cts for 2023, and +1 cts for 2024! restore back to 5cts!
it definitely do-able for company!

Hello brattzz - standing back from the FY results, I’m inclined to agree with you. The dividend aspiration you outline should be locked-in. When Ms. Yap first came onto the CEO seat, taking over from the late Mr. Neo, she pushed up the annual dividend to S$ 0.05. Before the dividend receded to S$ 0.03 that period was co-incident with elevated LHT share prices. 

Ms. Yap and her BoD are being a tad conservative in not nudging it back towards that S$ 0.05 direction - she has the cash, the retained earnings and the balance sheet to implement this. LHT’s history demonstrates that higher dividends propel the share price upwards. I suggest the Annual Dividend level should be the key subject for shareholders to raise at the forthcoming AGM. 

Best to you brattzz.

Vested, for some time