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24-02-2017, 11:45 PM
(This post was last modified: 24-02-2017, 11:46 PM by RBM.)
LHT issued their FY2016 Financial Statement earlier this evening.
Bless you Ms. Yap Mui Kee - an MD who clearly understands the importance of dividends to shareholders and who isn't shy of rewarding shareholders even in a challenging business environment. My quick take:
3 Positives:
+ Dividend up ~ 67% from 3 cents to 5 cents. According to my calculations that equates to a dividend yield of 7.9% (repeat: seven point nine).
+ Enhanced cash position - borrowings further reduced and cash almost S$ 4 Mln up y-o-y. The safety margin on this tiny stock has been further enhanced.
+ Profit up, albeit marginally. Clearly there is a focus on costs and margin preservation/enhancement.
3 not-so-positives:
- Bit of a surprise to read that LHT will have to relocate from their Sungei Kadut premises by 2020, ~ 5 years ahead of their lease expiry. First time I read this - maybe I am just not keeping up to date ............. or I've forgotten!
- Revenue down by ~ 6% y-o-y (although Cost of Sales was down by >9%).
- When Ms. Yap was recently elevated to the MD role, I would have hoped this ~ S$ 32 Mln market-cap company would have taken the opportunity to reduce the size of its Board. Keep overheads down etc. Instead they have appointed a new Executive Director - former CEO Neo's son, Billy. A Board of seven for a ~ S$ 32 Mln company?? Over-the-top in my view. I've been on listed company boards with less Directors with > 50 times LHT's market cap.
But thank you Ms. Yap ............ you have made my weekend. Your first Final Dividend announcement is a pleasing one.
Congrats to the forummer who boldly had the courage of his convictions to buy more than a few lots at a share price > 60 cents earlier this week. I suspect you may be rewarded when Mr. Market expresses his opinion during the coming week - I very much hope you are.
Remember ........... pallets make the world go round.
Vested
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25-02-2017, 07:33 AM
(This post was last modified: 25-02-2017, 08:23 AM by BlueKelah.)
Thanks RMB the congrats and update.
After the fantastic q3 earnings it was a no brainer that fY results would be good.
Nice big div, but as u point out we will need to watch management more closely in the future. Though unlike mgt. Like ap oil or Hong fok they don't seem to be overpaying, so another board member should be ok. Maybe reward the son for the dad's past service.
The group should move operations to johor at a sooner date to take advantage of lower cost I reckon rather than stay on in Sungei kadut
This one has high chance of delisting as well at some point. Like spindex, second generation may have no qualms about not having co. Listed lol....
Revenue wise not so good, perhaps warehouses ordering less as economic activity is decreasing in local region?
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Congrats BlueKelah =)
The 5c dividend is certainly a pleasant surprise and it would be most interesting to ask Management during the AGM whether it is their intent to maintain a payout ratio of 67% of earnings as dividends. If so, I am quite positive that LHT can comfortably maintain the 5c dividend which would give a resultant yield of 7.2% based on last traded price.
Personally, I don't see LHT to be much of a growth play with not much catalysts in sight other than some good news of lowering their operating costs as what BlueKelah but this could very well turn out to be a nice dividend play stock. 7.2% yield with zero gearing and good cash flow easily beats most other Reits out there.
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28-02-2017, 11:46 AM
(This post was last modified: 28-02-2017, 11:55 AM by BlueKelah.)
Thanks sgpunter. But I only managed to get tiny amount, less than 20lots, some more have to trigger the bloody circuit breaker to get (quite fun, made the CIRB alert and hang the stock for 5 minutes lol...)
Kopi lui only loh when div come. I think i wanna sell also no one to buy lol.
This is a steady tiny cap business that should do ok in the longer term.
Potential for sudden buyout or privatisation is also there.
I think only need a few interested investors wack a few hundred lots it will easily gap up to NAV 85c
Though no sexy growth story so I also dun see it going up much beyond that. Also so thinly traded, today again no volume.
-v indicator-
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Wah Yap Mui kee manage to buy in 10lots also lol, seriously going for privatisation?
Haha gonna wack more tomorrow if got any for sale lol...
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Wow Director Yap was willing to pay $0.695 for the 10 lots. If she is willing to support this pricing, can we assume that this will be the floor for the price moving forward?
There can be many reasons when an insider sells. But if they have been steadily accumulating stakes in the company, there can only 1 reason why they are doing it - it's only going to become more valuable!
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28-02-2017, 10:10 PM
(This post was last modified: 28-02-2017, 10:11 PM by brattzz.)
only 10 lots, not enough petrol money for her merz...
let see if she continues to buy more!
why not issue bonus shares?!
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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14-08-2017, 05:28 PM
(This post was last modified: 14-08-2017, 05:43 PM by RBM.)
Mr. Market expressed his displeasure at LHT's poor 1H 2017 financial results (announced last Friday evening) during today's trading and he did so with a relatively high volume - LHT's share price closed down >6%. Unsurprising given the significant hit to the bottom and top lines that LHT reported. Save for a minor reduction in outstanding loans and higher unit proceeds from wood chippings, I read little reason to cheer the numbers and moreover the drivers behind those numbers. That said, this is going to be a test of Ms. Yap's ability to turn revenues around ......... and turn them round pronto........... but I have a suspicion that she was in the market today - there appeared to be a couple of married trades done late in the morning.
Vested (and I nibbled at a bit more today), RBM
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