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Overview
Financial Highlight
HeadlinesBusiness Background Lee Swee Kiat Group Bhd operates in the Mattresses and bedsprings sector in Malaysia. The company is engaged in the manufacturing, trading, and distribution of mattresses, bedding accessories, laminated foam, polyurethane foam, natural latex foam and other related products. LSK operates a retail chain store under Brand IBG that promotes Ergonomic beddings and furniture. It also engages in investment holding activity.
  Superb99 i cut half d, so far the price is still not supported plus poor market sentiment...most likely it will drop further....just my personal view 16/06/2021 5:23 PM rikki On track for record earnings in 2022F - Target Price RM1.84 ■ We view LSK as a proxy to the recovery in consumer spending, backed by: i) higher mattress sales, ii) price hikes, and iii) higher economies of scale. ■ We expect LSK’s collaboration with Cuckoo Malaysia to propel its profitability to new heights going forward, with more marketing activities expected. ■ LSK’s valuation is undemanding at 5.5x CY23 P/E, an 81.6% discount to our discretionary consumer sector’s mean CY23 P/E. Reiterate Add. Witnessing a rebound in local sales since 4Q21 Since the gradual lifting of lockdown measures starting Oct 21, LSK has been witnessing a strong rebound in sales in the local market. This is in tandem with the reopening of its retail outlets, as well as more large-scale furniture fairs and exhibitions being held. On top of that, we gather that LSK has seen a surge in mattress sales in areas affected by the recent floods. Supported by the price increases effective 1H21, we expect the higher sales to translate into margin expansion for the company from 4Q21 onwards. Sales of A-series mattress in 2021 affected by lockdowns While LSK aimed to sell 12,000 A-series mattresses (sold under LSK‘s collaboration with Cuckoo) in 2021F, sales likely fell short (estimated to reach only 7,000, which is in line with our estimates) due to the impact of various lockdowns throughout 2021. Nevertheless, we take comfort that sales in May 21 (prior to the implementation of a full movement control order [FMCO] in Jun-Sep 2021) was an encouraging 1.5k units. Still optimistic on prospects of collaboration with Cuckoo We remain optimistic about LSK’s collaboration with Cuckoo International. With the lifting of lockdown measures and supported by better consumer sentiment and more marketing activities, LSK is confident of achieving sales of 20,000 units (+185% yoy) in FY22F. In our view, the rental model (with low initial purchase cost) offered by Cuckoo-LSK when purchasing A-series mattresses could also be an attractive proposition to buyers amid the current subdued consumer sentiment. Note that LSK expects contributions from its collaboration with Cuckoo to contribute at least 20% of its turnover from FY22F onwards. Net cash position will support attractive dividend yields in FY23-24F As at end-3Q21, LSK has a net cash position of RM5.6m. With no major capex planned in FY22-23F (flat at RM3.5m for FY21-23F), we expect its robust balance sheet to support its dividend payouts (45% for FY21-23F). With an expected rebound in earnings, mainly in FY22-23F, this could translate into solid dividend yields of 2.9-8.3% for FY21-23F. Reiterate our Add call We make no changes to our FY22-24F EPS forecasts. We also keep our Add call and TP of RM1.84, based on 13x CY23 P/E, in line with its 5-year mean. We continue to like LSK for its: i) defensive business (resilient demand for beds); ii) attractive valuation (5.5x CY23F P/E); and iii) strong fundamentals (high ROE and net cash position). Re-rating catalyst: a spike in sales volume and higher-than-expected sales from its collaboration with Cuckoo. CGSCIMB Research January 12, 2022 17/02/2022 11:15 AM Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥ P/E Ratio (TTM) 16.20(04/07/22) EPS (TTM) RM0.05 Market Cap RM129.40 M Shares Outstanding N/A Public Float 155.91 M Revenues and profits have been up and down during the last 5 years. Given this lack-lustre consistent growth, it is not a company that for holding for the long term. The share price has traded over a range and this might be of interest for short term players. 07/04/2022 4:42 PM Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥ Security LastPr PE DY% Divcts ROE ttm-marg LEESK (Household) 0.76 9.79 4.6 3.5 17.64 10.1 30/03/2023 4:15 PM Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥ Ratios & Margins Lee Swee Kiat Group Bhd All values updated annually at fiscal year end Valuation P/E Ratio (TTM) 9.31 P/E Ratio (including extraordinary items) - Price to Sales Ratio 0.91 Price to Book Ratio - Price to Cash Flow Ratio 7.00 Enterprise Value to EBITDA 6.14 Enterprise Value to Sales 0.85 Total Debt to Enterprise Value 0.12 Total Debt to EBITDA 0.69 EPS (recurring) 0.08 EPS (basic) 0.08 EPS (diluted) 0.08 Efficiency Revenue/Employee - Income Per Employee - Receivables Turnover 8.08 Total Asset Turnover 1.19 Liquidity Current Ratio 1.77 Quick Ratio 1.31 Cash Ratio 0.69 Profitability Gross Margin - Operating Margin +9.12 Pretax Margin +11.95 Net Margin +10.10 Return on Assets 12.02 Return on Equity 19.67 Return on Total Capital 14.73 Return on Invested Capital 17.67 Capital Structure Total Debt to Total Equity 17.50 Total Debt to Total Capital 14.89 Total Debt to Total Assets 10.80 Interest Coverage 21.83 Long-Term Debt to Equity 9.33 Long-Term Debt to Total Capital 7.94 Long-Term Debt to Assets 0.06 Dec 2022 Cash & Short-Term Investment 23.43 M Total Debt 12.36 M Total Liabilities 43.65 M Total Shareholder's Equity 70.61 M KEY STOCK DATA P/E Ratio (TTM) 9.31(04/20/23) EPS (TTM) RM0.08 Market Cap RM121.32 M Shares Outstanding N/A Public Float 155.91 M 23/04/2023 6:33 PM Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥ LEESK Financial Information Market Capital (RM) : 125.86m EPS (cent) : 7.76 Business+ : Member Only Number of Share : 167.82m P/E Ratio : 9.66 YoY Score : Member Only TTM Revenue : 129.02M ROE : 17.64% QoQ Score : Member Only TTM Profit : 13.03M Dividend (cent) : 3.500 ^ Debt/Asset Ratio : Member Only TTM Profit Margin : 10.1% Dividend Yield : 4.67% Net Cash (RM) : Member Only CAGR - Revenue : 11.5% Dividend Policy : Member Only Net Cash/Share (RM) : Member Only CAGR - PAT : 16.7% Dividend Payout : Member Only Equity Growth : Member Only NTA (RM) : 0.440 P/B Ratio : 1.70 23/04/2023 6:38 PM  Michael Kwok Price 75-78(buy on weaknesses) Tp rm 1-rm 1.10(Medium term 6 month below) 17/6/23 11.30pm ****I come then it will up😀😀😀 17/06/2023 11:30 PM mlmkcomic I carried out an analysis of the performance of the Bursa furniture sector over the past 13 years and this company was one screened for further investigation. If you want to see the details of the sector or the analysis of LEESK go to my blog. 09/07/2023 10:00 AM Dehcomic01 Check out this YouTube analysis of the furniture sector https://www.youtube.com/watch?v=J--jjPbrc6I 23/08/2023 11:28 AM Battleman why this counter suddenly price shooting up? any good news coming soon ? 22/01/2024 2:00 PM Matccom @ Michael Kwok respect your sharing even though I was not involved in this counter.😙😄😄😄😀 Price 75-78(buy on weaknesses) Tp rm 1-rm 1.10(Medium term 6 month below) 17/6/23 11.30pm ****I come then it will up😀😀😀 2023-06-17 23:30 16/02/2024 5:51 PM  James Ng [转贴] [Video:浅谈LEE SWEE KIAT GROUP BERHAD, LEESK, 8079] - James的股票投资James Share Investing https://klse.i3investor.com/web/blog/detail/general/2024-02-16-story-h-188393975 16/02/2024 8:58 PM pinetree88 Bought in 1.16 today. Daily vol >2mil shares looks good and seems continued strong buying. Think their FY result should be reporting this wk. Any predictions or comments on their FY results? 19/02/2024 3:42 PM  speakup small caps are all dropping but big caps especially CI components are artificially supported by epf, pnb, khazanah, kwap to make malaysia look good to foreigners 13/03/2024 7:46 AM MACD hi @speakup ,if you dont mind sharing,,, this stock is small cap or big cap overall ? let say leesk compared with minetec , leesk market cap for today 177.85 m and price 1.06 while minetec 258.794 m and price 0.145, does the price play any role here ? so which ones is bigger cap ? 😅 13/03/2024 8:06 PM trader808 1. Lee SK has a string of corporate exercises. In addition to the 3.5sen cash dividend and one for 25 dividend in species it has again on 14/3/24 announced in is filing with Bursa to reward its long term shareholders with a bonus issue. For every 2 existing shares you will be rewarded with 1 bonus share on a date to be determined subsequently. 2. Despite the positive news, share price did not move much yesterday. Where do we go from here?. 3. LEE has EPS of 8.13sen say 8sen. Before the announcement of cash dividend, share dividend and bonus shares the price was 70sen. Hence, the PE multiple then was 9x. Share price usually trade in advance of fundamentals and it has gone up to 1.20 leading up to its filing with Bursa. At this price ,the PE was 15x 4. It gradually retracted and upon announcement yesterday share price did not move much and close at 108 and a PE multiple of 13x. 5. What will happen next? The company now has issued and paid up capital of 167m shares. Upon completion of corporate exercise, the issued capital would enlarge from 167m+6.7m+86.8m =260m shares. 6. The company last year made 13.6m net profit. To ascribe a future value for Lee, let's assume the company is able to sustain an earning growth by 25%. Therefore the year end profit will be 13.6 x1.25 =17m 7. Hence, the EPS post bonus would be 17m divided by the enlarged capital 260m is equal to 6.8sen 8. Now, A PE of 10x would price it at 68sen and PE of 11x would value it at 75sen post bonus. 9 with this line of reasoning, we can logically assign a pre bonus value to the shares calculated in this manner. If the PE is 10x simply take (68 x3)/2=RM1.02 if the PE is 11x simply take (75x3)/2= Rm1.12 11. LEE sk closed at 108 yesterday. In my opinion, it is fully value. 12. This is my personal and layman perception of the corporate exercise and its impact on share price. It is not intended to influence your investment decision and strategy. 13. Have a good day and happy trading 15/3/24 15/03/2024 10:02 AM Michael Kwok Lws 93 cents. Let see in below 90 cents a while,then consider.let see before mid 15 mei look like. Add me or paid(to give direction) 24/4/24 4.02pm. 24/04/2024 4:03 PM curiousq Proposed Bonus Issue of up to 83,907,852 New Ordinary Shares in Lee Swee Kiat Group Berhad ("LSK") ("LSK Shares" or "Shares") ("Bonus Issue") on the basis of 1 Bonus Share for every 2 Existing LSK Shares held on an Entitlement Date to be determined and announced later. Date of Meeting 27 May 2024 Time 11:00 AM 07/05/2024 11:19 AM  |
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