LHT Holdings

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Hello Weijian,

+ Compared to FY 2022 results, LHT’s FY 2023 results were not positive as regards revenue, gross profit and net profit.
+ I suggest Shareholders should be wary of any LHT intention to invest overseas. My proof point: Last time LHT tried this - in Tianjin PRC - it was a total failure, with the entire investment cost eventually written off. IMO, LHT does not possess the wordly wherewithal and management know-how to successfully embark on overseas ventures. I would much rather they “stick to their knitting”, keeping themselves to the orderly, relatively transparent Business environment of Singapore (which management know well) and pursuing Businesses which are highly synergetic to their ongoing busines - a good example if this was LHT’s Wood-chips Business. And LHT should remit surplus funds to their shareholders…. as they have just done.

Vested
RBM, Retired Botanic MatSalleh
Reply
Hi RBM,

LHT was a beneficiary of covid and so with covid subsiding, it is no surprise that FY23 is not positive compared to FY22 as "reversion to the mean" continues. But GPM looks stubborn and much above pre-covid, I wonder what has significantly improved? 1 thing I did notice would be depreciation expenses are lower now (I think LHT puts most of its depreciation expenses for its wooden pallets under COGS) but it still does not explain the higher GPMs. OR would the GPM eventually revert to historical pre covid norms??

And allow me 1 more rant on surplus funds. A lot of local towkays love to use their surplus funds of their listed entities, to buy investment properties, despite the core/parallel business is not even close to been "investment property holding" related. But by doing so, they retain the "AUM" in perpetuality. But a small subset of them, actually prefers to pay out the cash - and then they receive the majority of it anyways and build up their own "property empire" in another entity. We have to keep searching for this small subset. Smile
Reply


Forum Jump:


Users browsing this thread: 2 Guest(s)