Highlights
KLSE: LATITUD (7006)       LATITUDE TREE HOLDINGS BHD MAIN : Consumer
Last Price Today's Change   Day's Range   Trading Volume
4.25   -0.02 (0.47%)  4.18 - 4.25  55,800
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Overview

Market Cap: 413 Million
NOSH: 97 Million
Avg Volume (4 weeks):92,655
4 Weeks Range:4.18 - 4.66
4 Weeks Price Volatility (%):
14.58%
52 Weeks Range:4.18 - 6.00
52 Weeks Price Volatility (%):
3.85%
Average Price Target: 5.15
Price Target Upside/Downside: +0.90

Financial Highlight

Latest Quarter | Ann. Date 30-Jun-2017[#4]  |  29-Aug-2017
Next QR | Est. Ann. Date: 30-Sep-2017  |  29-Nov-2017
T4Q P/E | EY: 5.98  |  16.72%
T4Q DY | Payout %: 0.00%  |  - %
T4Q NAPS | P/NAPS: 5.69  |  0.75
T4Q NP Margin | ROE: 8.79%  |  12.49%

Headlines

Date Subject
22-Jul-2017 Latitud nails the wicked economics of furniture industry - Yeong Sheng Tey
14-Jul-2017 Extracting Value in Latitud - Yeong Sheng Tey
01-Jul-2017 Mining value in wooden furniture companies - Yeong Sheng Tey
23-May-2017 【阿弟】Latitude 基本面好,低本益比,為何還會跌?
25-Feb-2017 Latitude VS Hevea VS Liihen ?
24-Feb-2017 Quarterly Result (Malaysia) – Latitude Tree Holdings (Q2 FY17) - Jackson Yuen
21-Feb-2017 [转贴]【U TURN股续】- LATITUD(7006)获益于美金走高,EPS = 32.92 cent 破历史新高!- Harryt30
19-Feb-2017 (RICHE HO) Latitude Tree Holdings Berhad - Earnings Recovery in FY17
14-Feb-2017 [转贴] 【U TURN股】- LATITUD (7006) 强势回归,美金走高最大的获利者之一! - Harryt30
07-Jan-2017 How can Latitude Tree create more benefit for all shareholders ?
05-Jan-2017 Daily technical highlights - (LATITUD, SOP)

Business Background

Latitude Tree Holdings Berhad is engaged in investment holding and provision of management services. Through its subsidiaries, the Company specializes in the manufacturing and sale of wooden furniture and components, particularly rubber-wood furniture. Its products are divided into three groups: bedroom collection sets, which include beds, nightstands, chests, armoires and wardrobes; dining collection sets, which include tables, chairs, buffets, hutches, curious, sideboards and servers, and living room collection sets, which include sofas, sofa tables, occasional tables, coffee tables and cabinets and others. Its manufacturing activities are operated from its three factories in Malaysia, two factories in Vietnam and one factory in Thailand. The total floor area of the six manufacturing plants is approximately 7.8 million square feet. The Company distributes its products within the domestic market and to overseas, including Vietnam, Thailand, Singapore and other countries.
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  9 people like this.
 
lloydlim Good news to us! Hope KYY continues to sell his balance stock.
31/08/2017 11:14
cheated Profit drop to 2013 level. How about share price compare to 2013?
https://klse.i3investor.com/servlets/stk/fin/7006.jsp
02/09/2017 03:53
yfchong pandai.... very good valuation... it is mechanic like science... does it has numbers to tell... any good stories.?
02/09/2017 09:53
yfchong bye bye... need to be frozen in ice box... keep
05/09/2017 16:05
Davidl So sad...
05/09/2017 19:16
jibbie going to be a long time before we see it going up. Looks like downgoing cycle from now
07/09/2017 19:31
cy91 why drop -.-
08/09/2017 15:44
Davidl Perhaps dunspace could gv some explanation later.
08/09/2017 19:27
cpng why drop -.-

老koon 在卖票清货走人,天天卖不知要卖到几时,大家最好袖手旁观,才能买便宜货。
08/09/2017 23:37
yfchong until stable...
10/09/2017 19:29
4444 RM likely to trade firmer against USD next week
http://klse.i3investor.com/servlets/fdnews/236690.jsp
10/09/2017 19:31
yfchong sudah tekan kau kau....
11/09/2017 13:25
Davidl So quiet...
11/09/2017 20:46
yfchong urayamakashi.... shizukana..
12/09/2017 13:17
dunspace only time will tell who will be the winner, in a short run market is a voting machine while in a long run it is a weighing machine. My view is that this company is still full of positives that overweight the negatives.
19/09/2017 18:33
nikicheong Looks good. Can it fall to RM4.20?
24/09/2017 14:06
nikicheong Expect a jump up tomorrow at open, as The Star has published a positive sector report. But then expect a selldown given the volume/liquidity being offered.
24/09/2017 22:56
yfchong no jump
07/10/2017 17:39
dunspace Realised something, the quieter the forum of the company, the better the investment opportunity and lesser speculators paying a high premium for their stories.
30/10/2017 10:06
lloydlim dunspace dunspace
30/10/2017 19:29
PotentialGhost Malaysia got 2 fomous fake value investor dump their under value stock , go to goreng his jaks.

Latitude can drop so much because kyy wife throw his share.

And kyy throw his canone . This 2 wolf.
31/10/2017 19:10
yfchong wait for q report
07/11/2017 10:20
lloydlim Would qtr report surprising us?
09/11/2017 10:56
Garry Yong Chee Seng How come share price going down day by day? What's wrong about Latitude Tree, any news sharing?
09/11/2017 17:24
yfchong Die liau...........
09/11/2017 19:41
PotentialGhost Cold eye still holding , believe value , furniture market not so bad also , latitude drop day by day is because kyy and his wife's throw his share to goreng jaks , hengyuan .
09/11/2017 22:00
Lac1234 Hello, may I know why this share price keep dropping ?
Could it be bad performance of furniture industry ?
10/11/2017 09:29
Lac1234 是不是傢具业已经落后了,生意量跌了.
10/11/2017 09:30
Garry Yong Chee Seng 公司依然正常操作,还在赚钱,ROE也不见得逊色,PE才6+比同行都低,股价比NTA低而且还是全年新低,很明显已被低估,连续惨跌是有人故意抛售的。下个月派息12SEN和去年一样没减。美国升息几率高有助盈利。目前我还是信心满满的。
10/11/2017 12:07
PotentialGhost 如果家具行情 那么坏 liihen 不可能在4.00 , 整体 家具行情并没有很差 , 会跌到这样 是有人故意抛售的 , 如果你今天放 购买 100万股 在 4.00 ,那个kyy 就会丢票 。 用这些钱去推他的 hengyuan 。
10/11/2017 12:55
jibbie the q result can't possibly be better. be prepared for disappointing results and a drop <rm4
10/11/2017 14:23
leekh5555 price seem very attractive now,maybe will buy some after this qty result...see how
10/11/2017 16:00
yfchong Beza what's yr opinion
10/11/2017 20:23
nikicheong Wait lah, no hurry! I think long term good propspect, short term shaky.
10/11/2017 21:54
Jon Choivo In terms of EV/EBIT. The ratio is now a flat 3.

Which means if you buy the whole company now, it will make back your cost in 3 years flat.

Its a no brainer. We might be at the higher end of a furniture cycle, but this is way way way too low.
10/11/2017 23:57
Val-Elta For whatever the reason someone else is selling, I think it's a good opportunity for others. Assuming everything just remains the same. Don't forget it's still a EPS 70+ cents company with a NAPS of 5.69
How many companies in the entire bursa that has low PE and trading price that's below NAPS?

Other people may sell because they have another target that they believe they could push up easier or whatever... but it doesn't mean that Latitude is a bad company by itself. Especially, if you're not chasing after quick gains.


Financial/Fundamental analysis
YoY the 1st Q 2018 vs 1st Q 2017 will most likely be on the positive upside, supported by a few facts

1) YoY forex exchange rate is more favourable.
2) New sawmill expansion that's just completed construction in July 2017
3) New production line for the low volume, high margin products

Confirmed happened
1) is already a fact that has happened, just on forex itself, it's ~4-5% more favourable YoY.

Most likely will happen
2) Expanding the sawmill would be a relatively low risk to reward activity, I would say the benefit from here will probably reflect in an additional 1% margin increase on the lowest side of things.

3) New line for low volume higher margin products, this area would be harder to estimate the impact, until we see the next q result, but again, the risk to reward ratio is again most likely on the success side, since the variables and risks of operating a new line would be quite easily quantified by the management themselves. (Things like, do we have customer demand for such products? Do our existing customer want something on a lower volume? Cost of operating a new dedicated line vs cost of sales, etc is within normal business proposal/control)

Shareholder analysis.
From the latest AR 2017, vs AR 2016
In terms of top 30 shareholding, even with KYY selling out half of his known holdings, (about 3 millions sold) the total shares held by the top 30 shareholders actually increased (slightly about 1%)
This means that an exit of a big shareholder is replaced by an entry of another big shareholder, (there is 2 new top 30 shareholders, which is from European funds)
So all in, there is still big fish who is willing to buy up Latitude too. Shares is not being sold from KYY to small fishes which may have weaker holding power if that's your concerns.

Again, this is a good opportunity to buy, I believe. Certainly way oversold at this price level.. don't forget Poh Huat, Lii Hen they all are trading at near their 52 week high.
13/11/2017 11:04
Val-Elta 2) Expanding the sawmill would be a relatively low risk to reward activity, I would say the benefit from here will probably reflect in an additional 1% margin increase on the lowest side of things.

>> Let's talk about their sawmill business a bit more.
In the latest AR result, they mentioned 40-55% of their COS is spent on wood/wood based products.

You can take their annual COS * 0.5 and they're spending 327 million on wood itself.

Assuming the profit margin of the sawmill that supply Latitud last time is just a low 4% margin...

That's 13 million of profit that can potentially be added to Latitud's net profit per year! If all of Latitud's wood purchase is routed back to the internal sawmill at 4% profit margin. Even if half of it is realized only, that's still 6-7 million of profit per annum, which increases EPS per year by 10% !!!
13/11/2017 11:48
lloydlim Perhaps dunspace knows something that we dun!
14/11/2017 12:46
member41 Even cheaper now
14/11/2017 17:05
Garry Yong Chee Seng Everyday cheaper price.
14/11/2017 17:59
PotentialGhost Crazy , market lost control ,already mad
14/11/2017 20:01
chrisyap want to start buying a bit a bit already hehe
14/11/2017 21:13
Khai Thim Woo Buy Buy Buy
15/11/2017 11:16
nikicheong @Val-Elta, good analysis.

Latitude offers very good value at these levels (@ ~0.75X P/BV while earning ROE >10%). Indeed for those who cannot find good opportunities in the market, this might be a good buy. It would be the best wooden furniture company stock at least from a value proposition.

I personally can find better opportunities in the market (surer bet + better payoff profile), though Latitude is definitely on my "strong" watchlist.

However, be very mindful that Latitude is subject to FX movement highly. If the Ringgit continues strengthening expect profitability to decline.
15/11/2017 11:49
dunspace I think a lot investors are just worried about the strengthening of Ringgit ~oil price on an uptrend. Going to wait for quarter results for top up, want to see whether did Latitud benefit from the hurricane in US, rubberwood prices and results of their higher margin products. Anyways, if we can predict the FX, we might else well play FOREX.
15/11/2017 19:57
nikicheong @dunspace, Latitud is actually leveraged on the FX. This is because every 1% increase/decrease in MYR will result in some 6-7% loss/gain in the bottomline. So it's a very leveraged play, and best to stay away if you aren't sure about how to structure this "bet". Mind you, the MYR slid badly, it's hard to imagine things getting worse from here on out. Heck, YTD we have already recovered.

Still if MYR stays at RM4.00-RM4.30 Latitud will be a good buy. But if we go back to under RM4 then Latitud might face issues. I feel more comfortable with a larger margin of safety buying a net importer rather (such as Tan Chong, UMW etc).
15/11/2017 22:54
dunspace I am just stating that if anyone is really sure about what's the exchange rate going to be, you might else well use your expertise in FOREX, better gains for your predictions. I am well aware that I myself cannot predict the exchange rate, therefore, might else well look at the current numbers
16/11/2017 18:57
ongmari waiting to buy low....,,,
17/11/2017 13:52
Ku2016 waiting at rm3....after QR....
23/11/2017 21:10
deepsea Latitude is facing stiff competition from China manufacturers especially those China furniture makers with big factories in Vietnam. Latitude has to compete for orders, materials and workers with those China furniture makers in Vietnam. China factories are snatching/stealing capable leaders/supervisors of Latitude beside orders and materials.
Going forward, FY2018 is a tough and challenging year for Latitude as Latitude has to compete with very big and rich China manufacturers.
24/11/2017 16:35


 

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