LHT Holdings

[brattzz]

Ok, thanks RBM, I will try to attend and ask questions, let see what we can get...👍

Hi Brattzz,

Did you attend the agm? if yes, mind sharing?

Tq

Sorry nitro, I was unable to make it... didn’t managed to vote...🤨

[merxantia]

https://links.sgx.com/FileOpen/SGX%20Wai...eID=590300

For a company that currently only has approximately $25m in market cap, this is an eye popping cost to be incurred by LHT to facilitate the proposed new factory and lease as spelled out below. 

Based on the Company's current estimates, the estimated total investment costs required for the Company for the Proposed Lease would be S$56,000,000 ("Estimated Total Investment Costs"), including the estimated costs required for and relating to the construction of the Proposed New Building and the Proposed Lease. The Estimated Total Investment Costs do not include the aggregate amount of Land Rent (payable on an annual basis) payable by the Company to JTC over the Lease Term of thirty (30) years.

[dydx]

At a plot ratio of 2.50 for a piece of seafront land with an area of 18,000 sq.m. (equivalent to approx. 134 x 134 metre), LHT by spending $56.0m in the Estimated Total Investment Cost (which includes a minimum $3.0m to be spent in new plant & equipment, and transferring existing plant & machinery with a NBV of $3.8m from 27 Sungei Kadut St 1) will end up owning 45,000 sq.m. of usable/rentable industrial space in a brand-new 5-storey building over the next 30 years commencing 1Apr2020, before accounting for the payment of an ongoing JTC annual land rent. A simple calculation gives a cost of ownership of the usable industrial space as $41.50 per sq.m per year - or only $0.32 p.s.f./month - before accounting for the JTC annual land rent and interest on borrowing. When compared with just $1.00 p.s.f./month as potential market rental for industrial space, there is ample margin for this investment. If LHT is to rent out 50% of the usable space and keeps the remaining 50% for own use, the potential annual gross rental of over $2.0m would be able provide a nice additional income and also helps service the additional debts taken to financing this investment.

Our government through JTC is helping LHT, which is playing an important role in waste wood recycling in addition to supplying pallets to Singapore's manufacturing industry and logistics service provider.

[AQ.]

I think it is gr8 news.

Other than the likely boost to RNAV arising from the 30y leasehold property, i note the location at 30 Kranji Way. From Google Maps, this is right beside the reservoir and also quite close to the Causeway, (which is prob a good fit with the newly bought land in M'sia). The authorities must have been rather confident of the environmental standards of LHT to grant it such proximity to the reservoir, esp when it will be engaging in manufacturing of its green pallets.

In the longer term, the future of the pallet industry is also clear. Sungei Kadut is currently littered with a bunch of old companies using the ancient methods of wooden pallet production which is environmental pollutive, prone to pest infestations and land intensive. These companies will probably be forced to exit once their land leases are up. The industry will then be forced to upgrade to one of higher environmental standards and productivity, and those who neither have the intent nor capital to keep up will be forced out. LHT will prob be a beneficiary of such consolidation.

LHT seems to be promoting its green initiatives aggressively, being one of the 20 sponsors of CleanEnvironSummit 2020 (organised by NEA)

https://www.cleanenvirosummit.sg/our-spo...onsors/LHT

With trade tensions cooling somewhat, i look forward to riding along with LHT for the eventual export pickup, and the global concerns on environmental sustainability.

[brattzz]

1) agreed it's good news for company, it's 30 years of stability in the new $56milos manufacturing hub.
2) Looking at the biz itself, it's not exactly in growth... have to be careful maintaining the market share/ revenue and profitability, on top of the loans liao..
3) Servicing the bank loan, interests at 4%,

Note 2: The adjusted EPS of the Company is rounded up and takes into account the sum of S$1,152,000, comprising (a) S$720,000, being the interest on bank loan of S$36,000,000 at an interest of 4.0% per annum and on the basis that S$18,000,000 has been disbursed; (b) S$147,000, being the depreciation of right-of-use leased asset; and © S$285,000, being the finance cost of lease liabilities.

4) This eco-hub can/will serve the on-going change of this "wood" industry...

Waiting for manufacturing pick up though...

[brattzz]

Half yearly 2020
Revenue down 7.7%
Gross profit up 42.3% - not substainable
Cash and cash equivalents at end of financial period 19 millions,


The Coronavirus Disease (Covid-19) outbreak and the measures taken to contain the spread of the
pandemic have created a high level of uncertainty to global economic prospects and this has impacted
the Group’s operations and its financial performance subsequent to the financial year end.

Looking forward, as of the date of this report, the Group is unable to quantify the effects of the ongoing
Covid-19 pandemic on Group revenue going forward as this pandemic is unprecedented and recovery
will depend, to a large extent, on whether there is any unforeseen circumstances like another Circuit
Breaker, or how soon a safe, reliable and effective vaccine is found, and how fast this vaccine is able
to be manufactured, shipped and distributed to all countries quickly.

As the situation gradually reverts back to normalcy, more competitors will resume halted operations, a
more diverse range of product offerings will become available and some slowdown in orders as some
customers would have stocked up more in the first half of the year than what they would normally require
for the same period. While the Group is not able to quantify the effects, these would likely mean that
the gross margin for the Group would very likely be lower in the second half of the year.

The Group is mindful that the pandemic may continue to dampen demand as well as increased credit
risks associated with credit losses from trade receivables resulting from decline in repayment ability and
inventory risk resulting from weaker market demand. The Group mitigated the above risks and potential
negative impact with increased credit control supervision and tighter inventory planning and will continue
monitoring closely the business climate.

The Group expects the current economic uncertainty due to the ongoing Covid-19 pandemic and the
geo-political tension to continue.

Under such uncertainties and challenging conditions, the Group will intensify its marketing efforts,
redesign and consolidate its production bases and operations, and continue to be prudent in managing
costs. As part of these measures, the Group’s operations in Tianjin will be further scaled down.

As a further update following the Group’s announcement on 30 January 2020 for the plot of land in
Kranji, Singapore, the Group has obtained approval from the landlord for an extension of time to end of
this year to commence preparatory land study works on the site due to the current pandemic situation.

[¯|_(ツ)_/¯]

ACQUISITION OF THE BALESTIER PROPERTY for $18.1m
The Balestier Property is located at 320 Balestier Road, Singapore 329924, comprising of a four-storey corner building, with a total land area of approximately 406.7 square meters. The first floor of the Balestier Property has been leased to the tenant by the Vendor with a tenancy term of two years from 10 July 2020 to 9 July 2022, for which all Vendor’s rights and benefits will be assigned to the Purchaser on the Completion Date. The second, third and fourth floors will be delivered with vacant possession.

The Group intends to operate the Balestier Property as a co-living space. As such, the Balestier Acquisition will expand the Group’s portfolio of properties under the co-living business in Singapore, increase the brand value of COLIWOO, provide potential capital appreciation to the Group and provide additional opportunities to generate revenue.
https://links.sgx.com/FileOpen/20200916%...eID=631934

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

thanks. strike off and post again.

Stay home and stay healthy, bro.

[brattzz]

FY 2020

The Group’s revenue for the financial year ended 31 December 2020 (FY2020) decreased
by 11.8% or $4.49 million to $33.63 million as compared to $38.12 million for the financial
year ended 31 December 2019 (FY2019).

Gross profit increased by 13.96% or $1.48 million from $10.60 million in FY2019 to $12.08
million in FY2020. The higher gross profit resulted from a better product mix despite the
lower volume and revenue.

The higher gross margin achieved during this pandemic year was mainly due to a few
reasons – the Group being able to operate during the Circuit Breaker period, acceptance by
customers of a better product mix offering with higher production efficiency, thus yielding
higher gross margins and the provision of upcycling supplies and pallets to essential
services sectors during the critical period in the first half of the year. As restrictions are
being eased with the arrival of vaccines, management is cautiously optimistic that the
economies of Singapore and its trading partners will gradually normalise in the months
ahead.

The Group’s net profit before income tax increased by 29.1% or $0.82 million to $3.64
million in FY2020 from $2.82 million in FY2019 mainly due to better gross profits, receipt of
Covid-19 government grants and tighter control over administrative expenses.

Cash and cash equivalents at end of financial year $24 milos, up 3milos from FY2019,
NAV $1.01
Dividend amount per share: 3.0 cents per ordinary share, similar to FY2019,

Quite consistent company... : )

[BlueKelah]

FY 2020

The Group’s revenue for the financial year ended 31 December 2020 (FY2020) decreased
by 11.8% or $4.49 million to $33.63 million as compared to $38.12 million for the financial
year ended 31 December 2019 (FY2019).

Gross profit increased by 13.96% or $1.48 million from $10.60 million in FY2019 to $12.08
million in FY2020. The higher gross profit resulted from a better product mix despite the
lower volume and revenue.

The higher gross margin achieved during this pandemic year was mainly due to a few
reasons – the Group being able to operate during the Circuit Breaker period, acceptance by
customers of a better product mix offering with higher production efficiency, thus yielding
higher gross margins and the provision of upcycling supplies and pallets to essential
services sectors during the critical period in the first half of the year. As restrictions are
being eased with the arrival of vaccines, management is cautiously optimistic that the
economies of Singapore and its trading partners will gradually normalise in the months
ahead.

The Group’s net profit before income tax increased by 29.1% or $0.82 million to $3.64
million in FY2020 from $2.82 million in FY2019 mainly due to better gross profits, receipt of
Covid-19 government grants and tighter control over administrative expenses.

Cash and cash equivalents at end of financial year $24 milos, up 3milos from FY2019,
NAV $1.01
Dividend amount per share: 3.0 cents per ordinary share, similar to FY2019,

Quite consistent company... : )

not a great yield at current share price though.