LHT Holdings

Propelled by the wonderful Ms. Yap’s continued share purchases and solid FY 2021 results, LHT’s share price climbed to a 52 Week high during today’s trading. I believe that todays declared purchase of 17,700 shares is the first time Ms. Yap has paid 70 cents or more for a share. Bless her, she owns almost 15% of the Company now and she has never sold a single unit. Let’s hope she objectively addresses the question of dividend level at the forthcoming AGM.

Vested, for some time.

Based on the FY21 results..
https://links.sgx.com/FileOpen/LHT%20Hol...eID=703975

2H Revenue at $18.6m had gone back up to pre-Covid level of $18.9m in 2H-FY19. More importantly, profit margins - especially GP Margin which increased to 40.3% in 2H, vs. 36.3% in 1H, 36.0% in FY20, and 27.8% in FY19 - had also increased substantially, and FY21's PBT at $5.6m (15.7% of Revenue) is 55% higher than FY19's $3.6m and far exceeded pre-Covid level. So it looks like the re-opening of SG's borders and economic recovery have boosted LHT's well-established local pallet business and its margins substantially as well. As SG's economic recovery is leading our neighbours, the positive trajectory of the underlying business since 2H-FY21 looks set to extend into FY22 at least.

(19-03-2022, 12:10 AM)RBM Wrote: Propelled by the wonderful Ms. Yap’s continued share purchases and solid FY 2021 results, LHT’s share price climbed to a 52 Week high during today’s trading. I believe that todays declared purchase of 17,700 shares is the first time Ms. Yap has paid 70 cents or more for a share. Bless her, she owns almost 15% of the Company now and she has never sold a single unit. Let’s hope she objectively addresses the question of dividend level at the forthcoming AGM.

Vested, for some time.

This stock has proven itself to be a value trap  

Whilst balance sheet is good, cash levels are too high and management is not paying it out nor doing active stock buybacks. 

Why has management not given a bumper dividend already? Show that they just wanna lock in the cash as long as they can, until they can do a cheap privatisation at the expense of OPMI that foolishly hold.

valuation wise, assuming current EPS can be maintained, total EPS for a year would be roughly 10c. PE of 10, stock should be at $1. 

Will it get there with low liquidity and lack of growth in the company?
Will Management increase payout to 5c next year?

It does not look like a very shareholder friendly company the longer i look at it.

Look at the market depth at 70c theres a heap of 32lots queed and not much queued in the sell queue at higher bids. Boss is the only buyer. 

No longer vested.

(20-03-2022, 09:34 PM)BlueKelah Wrote: This stock has proven itself to be a value trap  

Not counting the coming (in May) 0.03/share final dividend for FY21, LHT's shareholders had received a total of $0.19/share in dividends for the previous 5 FYs (FY16 to FY20), averaging $0.038/share a year. For shareholders who bought into LHT in 2016 mostly at sub-$0.55 level as a long-term hold, just on dividend alone the average annual return is close to 7%. Including the $0.15 appreciation in share price (by simply using $0.55 as reference) since end-2016, total return in last 5 years would be easily $0.34/share, or a little over 12% a year without considering compounding. This is not bad at all!

So it is a matter of different perspectives!

As it stands now, LHT's current market cap at only $37.5m appears still grossly underpriced against its latest 31Dec21 NAV at $56.5m (including a $36.3m cash reserve). I suppose that's why the counter remains illiquid, and MD Yap Mui Kee continues to patiently add more shares for her own benefit.

yeah, minority shareholders will have to step up and start asking for dividends increase/bonus share issuance already!!
I'll start the ball rolling by emailing MD Yap!

(21-03-2022, 09:38 AM)brattzz Wrote: yeah, minority shareholders will have to step up and start asking for dividends increase/bonus share issuance already!!
I'll start the ball rolling by emailing MD Yap!

I support, and wish you success in your good effort!

A one-for-one bonus - which will raise LHT's issued share base to 106.5m, from only 53.24m now - will be great and help in liquidity. Raising the yearly dividend pay-out to $0.05/share will be even better!

(19-03-2022, 12:10 AM)RBM Wrote: Propelled by the wonderful Ms. Yap’s continued share purchases and solid FY 2021 results, LHT’s share price climbed to a 52 Week high during today’s trading. I believe that todays declared purchase of 17,700 shares is the first time Ms. Yap has paid 70 cents or more for a share. Bless her, she owns almost 15% of the Company now and she has never sold a single unit. Let’s hope she objectively addresses the question of dividend level at the forthcoming AGM.

Vested, for some time.

(21-03-2022, 10:21 AM)dydx Wrote:

(21-03-2022, 09:38 AM)brattzz Wrote: yeah, minority shareholders will have to step up and start asking for dividends increase/bonus share issuance already!!
I'll start the ball rolling by emailing MD Yap!

I support, and wish you success in your good effort!

A one-for-one bonus - which will raise LHT's issued share base to 106.5m, from only 53.24m now - will be great and help in liquidity. Raising the yearly dividend pay-out to $0.05/share will be even better!

If my aged mind serves me correctly, LHT was one of those listed companies that consolidated its shares in order to abide by an ill considered, albeit short-lived, rule regarding minimum share price level. Several years ago, 4 shares were consolidated into 1, I think. More than a few listed companies bided their time and waited for the silly rule to be embarrassingly retracted - not our regulator’s finest hour. Please correct me if I have gotten any of this wrong.

I support dydx in recommending that vested buddies prioritise on dividend level, rather than bonus shares. I suggest a raised dividend would have a more beneficial impact on share price. Perhaps an elegant way-out for Ms. Yap would be to have her commit to an interim dividend payable in Q3 - this would allow the Board to verify that 2H ‘21’s solid performance has been extended thru 1H ‘22, thereby adding even further justification for an elevated yield. My niggling fear is that LHT’s cash will “burn a hole in Management’s pockets” and instead of raising dividends, the Board will pursue Tianjin-like ventures - let’s not forget that LHT’s PRC foray was an unmitigated, value-eroding failure.

Vested.

(21-03-2022, 12:46 PM)RBM Wrote: I support dydx in recommending that vested buddies prioritise on dividend level, rather than bonus shares. I suggest a raised dividend would have a more beneficial impact on share price. 

With such a big $36.3m cash reserve (31Dec21) - equivalent to a cool $0.68/share! - LHT can easily afford to pay out $0.05/share in dividends a year, even after a one-for-one bonus. A big special dividend could just happen as a big pleasant surprise; it all depends on the 3 founders - Neo, Tan and Yap families still working together as close partners.

(21-03-2022, 02:19 PM)dydx Wrote:

(21-03-2022, 12:46 PM)RBM Wrote: I support dydx in recommending that vested buddies prioritise on dividend level, rather than bonus shares. I suggest a raised dividend would have a more beneficial impact on share price. 

With such a big $36.3m cash reserve (31Dec21) - equivalent to a cool $0.68/share! - LHT can easily afford to pay out $0.05/share in dividends a year, even after a one-for-one bonus. A big special dividend could just happen as a big pleasant surprise; it all depends on the 3 founders - Neo, Tan and Yap families still working together as close partners.

You make an excellent point dydx- LHT’s current share price is barely above its current cash reserve per share. Apart from demonstrating the higher-dividend-paying capacity LHT clearly possesses, this numerical truism also demonstrates how grossly undervalued this counter is.

Vested

(21-03-2022, 07:57 AM)dydx Wrote:

(20-03-2022, 09:34 PM)BlueKelah Wrote: This stock has proven itself to be a value trap  

Not counting the coming (in May) 0.03/share final dividend for FY21, LHT's shareholders had received a total of $0.19/share in dividends for the previous 5 FYs (FY16 to FY20), averaging $0.038/share a year. For shareholders who bought into LHT in 2016 mostly at sub-$0.55 level as a long-term hold, just on dividend alone the average annual return is close to 7%. Including the $0.15 appreciation in share price (by simply using $0.55 as reference) since end-2016, total return in last 5 years would be easily $0.34/share, or a little over 12% a year without considering compounding. This is not bad at all!

So it is a matter of different perspectives!

As it stands now, LHT's current market cap at only $37.5m appears still grossly underpriced against its latest 31Dec21 NAV at $56.5m (including a $36.3m cash reserve). I suppose that's why the counter remains illiquid, and MD Yap Mui Kee continues to patiently add more shares for her own benefit.

55cents? haha go and see the daily volume and sell queue please, its been dead stock since 2016, last week i saw only a few lots at 705 and 710, but like 32lots plus at 700, very obvious boss is collecting at that level.. If i wanna  vested $50k it will push the price up to 80c or maybe even $1 liao.  the low share price with good yield is just for you to see. 

Look at Captii, also lotsa net cash, trading near cash value. How many decades its been ding dong at 40c to 60cent.

Also previously I had vested in CDW holdings was also near cash value many years ago. But all gone in bad investments and business losses as their product became less relevant.

So dont be blinded by high net cash, like hupsteel and AEH all high net cash, where are they now? Some companies like LHT may also utilise a huge chunk of cash to buy land and build factory etc.. so they dont use debt, but there goes your hope for a big payday. And as RMB said, they could do another PRC like value eroding foray. (what some companies do is to "invest" the cash overseas business, then after that the cash is gone and they close down the overseas subsidiary after write downs and losses. But the money ultimately has been redirected back to insiders. (look at the toilet paper fiasco in New Toyo in Vietnam, is it a coincidence wife of boss is Vietnamese?)

LHT You can tell its very obvious the boss and friends have no intention of doing anything about the share price. THey will just try to collect until they can privatise it on the cheap. Business wise how much growth do you expect?

I compare this to my other double and triple baggers winners like Powermatic, Spindex, Multichem and recently Riverstone, and a few other delisted ones like PCI. 

Wanna know what the secret sauce? its getting high cash flow businesses that have some growth potential with management that are happy to reward shareholders. And in sectors that are in the upcycle and will remain there for a while.

As you mention, so much cash can afford 5c dividend plus some extra big bonus but why keep at 3c? just like captii can afford to double their dividend back to precovid as business has recovered. why do they need OPMI to complain? cant management automatic a bit? Simple answer is they are not there to help you make money...

While there is always a potential for privatisation and a share price rerating, its a very slim chance. And for 7% yields theres other small caps like hotung etc.. that offer similar sustainable yields.

Not saying LHT is bad investment, just that for me the management behaviour and capital management speaks volumes on their intentions so I dont think it will end up as a GREAT investment.

Remember your good friends at S*****? i told you guys many years ago it was a very very obvious value trap, look at whats happening now with the rights issue and admin even have to shutdown the thread.

By the way have a look at REX Int. story, its all the hype now, but look at their maturation into oil production, debt reduction and the massive cash flows that will come in over next 20years if oil just averages above $60USD vs $30USD costs. Plus very easy growth into adding additional wells.

IMO big inflation is coming, for stocks the good places to hide are in commodities and precious metals....