Highlights
KLSE: LATITUD (7006)       LATITUDE TREE HOLDINGS BHD MAIN : Consumer
Last Price Today's Change   Day's Range   Trading Volume
3.29   +0.06 (1.86%)  3.23 - 3.30  54,200
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Overview

Market Cap: 320 Million
NOSH: 97 Million
Avg Volume (4 weeks):63,000
4 Weeks Range:3.20 - 3.62
4 Weeks Price Volatility (%):
21.43%
52 Weeks Range:3.20 - 5.62
52 Weeks Price Volatility (%):
3.72%
Average Price Target: 5.15
Price Target Upside/Downside: +1.86
Stamp duty exempted for year 2018

Financial Highlight

Latest Quarter | Ann. Date 31-Mar-2018 [#3]  |  21-May-2018
Next QR | Est. Ann. Date: 30-Jun-2018  |  29-Aug-2018
T4Q P/E | EY: 10.68  |  9.37%
T4Q DY | Payout %: 0.00%  |  - %
T4Q NAPS | P/NAPS: 5.66  |  0.58
T4Q NP Margin | ROE: 3.93%  |  5.44%

Headlines

Date Subject
16-Dec-2017 You sell.. who buys? - Yeong Sheng Tey
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

Business Background

Latitude Tree Holdings Bhd is a Malaysian based company operates as an integrated household furniture manufacturer. The business activity of the group is organised into business units based on their products and services and has three reportable operating segments which are Manufacturing, Rental of Property, Plant and Equipment and Investment Holding. The company derives the majority of revenue from manufacturing activities which is operated from it's over four factories in Malaysia, approximately two factories in Vietnam and over one factory in Thailand and it is engaged in the manufacturing and sale of wooden furniture and components particularly rubber-wood furniture. It offers products related to bedroom collection sets, dinning collection sets, and living room collection sets.
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  9 people like this.
 
Val-Elta I disagree that historical earnings should be ignored entirely. The historical earnings is a short summary of their customer profiles and production capability, and the customer relationships which although may have changed due to a new competitor giving a cheaper price, but the relationship can be potentially reactivated again if the circumstances is valid.

Past earning also reflects the income generation capacity. A company that does 10m in sales cannot realistically ramp up to 50m sales in 1 quarter, but a company that did make 50m in sales, while dropping to 40m still have the base production capability intact to go back up to 50m.

Latitude uses a sort of natural hedge where they pay their vendor in USD as well, so the forex drop will not hurt as much vs others.

I think the overall problem with Lat is, their chairman/management DO NOT focus on the share price performance..
This.. can be said as a positive thing, as I'm sure you know there's a lot of directors who will actively try to manipulate share prices to their own profit.
But the bad thing is, they let it drop down too much...

A sharebuy back at <4.80 is actually a WIN WIN for the company, shareholder, paying 4.80 for a NAPS of 5.8+ will immediately yield a profit, and increases the average NAPS

I think the government move to block rubber wood export hurt Lat's strategy at buying a lumber mill in msia, as their major usage of lumber is from their Vietnam factory... while unfortunate, you can't entirely say that their initial decision is wrong. Imagine if all their vietnam lumber is supplied internally instead, that could've improved profit margin by an important 1-2% if not more.

It's how they respond to all of these challenges that determine if the management is good or not.
And in the latest q result, we already did see a significant improvement in the revenue of their Msian sales, probably some startup issues on a new project/ramp up that impacted their initial Msian operations net profit.
11/01/2018 17:00
Val-Elta To me their ability to ramp up sales from their Msian factory indicates there's still some 'moat' available to them, their msian sales should tap into their Msian lumber mill, which we should be able to see the impact on their coming Q results..
11/01/2018 17:02
yfchong bagus lah tu...
12/01/2018 11:34
Jon Choivo I somewhat prefer liihen, not as undervalued, but management appear more competent and is more shareholder centric. Except they have very undemanding valuations. Also, with rubberwood export banned in malaysia, should be a big plus for them.
30/01/2018 12:01
Jon Choivo Either way, i hold both, with liihen being a bit bigger. Will probably buy more liihen next month.
30/01/2018 12:08
yfchong Semarang keeps buying.....maybe Ada kang tau
19/02/2018 20:37
babihutanlol tomoro 3.50 free fall
26/02/2018 17:37
babihutanlol From RM8 to RM4.....down trend...will see RM3 soon
26/02/2018 17:38
Flintstones Oh dear. That is why we dont invest with a rear view mirror
26/02/2018 17:42
yfchong hope already price in.... else.......
27/02/2018 06:58
jibbie samarang really buying for long term. profits dropping and i dont see it going up in near term
27/02/2018 08:57
deepsea Val-Elta, you are wrong. Latitude's Vietnam factories hardly buy rubber wood from m'sia (very minimal) as their factories in Vietnam can easily source rubber wood from Vietnam and Cambodia.
Their Malaysia's sawmill plant has problem of securing logs as Felda, Felcra and Risda plantations are controlled by corrupted officers and brokers.
27/02/2018 10:45
Val-Elta Actually rubber wood export from malaysia to china/vietnam was increasing also, until the gov started the rubberwood export ban. But fundamentally, can't defend the company also la... their margin compressed by so much, compared with Poh Huat who have operations in Vietnam too... so, yeah, I did cut loss a bit.
27/02/2018 10:55
Val-Elta Especially compared with Lii Hen, Poh Huat.. their sales to US, and their margin didn't go as bad as Latitud's can't really understand what else is happening.

Whilst its net asset will provide a cushion, maybe a bottom of 300-330 (Net cash+convertable to cash items is about 2.80 per share, it's totally crazy for it to go below net cash/convertable to cash value)

Don't expect any increase in share price until they managed to pass on some costs back to their customers/or gain new customers, or shift more of their sales from VN to MY.

This potentially could take a long time, 6 months to a year, but any turnaround in revenue, will result in them shooting back up quite fast... Latitud is a high risk/uncertainties, high gain type of stock d.
27/02/2018 11:00
tah16600 Technically the chart indicates it is in downtrend mode .So better stay aside cos we dunno how low it will go.
27/02/2018 11:07
Tom 过1年后我可能会把latitud放进watchlist
27/02/2018 11:31
yfchong it is in icu..... now.
27/02/2018 11:56
Babihutan88 Rm3 soon
27/02/2018 13:11
Babihutan88 This few days will down another 20%
27/02/2018 13:11
Davidl Really?
27/02/2018 13:18
Jon Choivo Parkson, PMCORP, Insas, Puncak. They all trade below net cash and cash equivalents.

Trust me, things can get alot crazier. I'm not sure how my investment in latitud will turn out but ill just hold, only 5% position anyway. Still wondering if im stupid or not.

Val-Eita
Whilst its net asset will provide a cushion, maybe a bottom of 300-330 (Net cash+convertable to cash items is about 2.80 per share, it's totally crazy for it to go below net cash/convertable to cash value)
27/02/2018 14:38
Edwardong53 Any comments from their top Mgmt on this poor quarter performance ? Looks like the flood disasters in US and other countries did not bring any benefits to their financial performance
27/02/2018 14:47
Garry Yong Chee Seng Free fall again tomorrow...till almost same with liihen price.
27/02/2018 20:50
Garry Yong Chee Seng Dividen also didnt hv, mayb worst than liihen...
27/02/2018 20:53
jibbie as long as semarang keeps buying, it should cushion the impact of the drop in share price. but if they start selling..
28/02/2018 06:26
yfchong almost taper
28/02/2018 15:32
deepsea don't worry, poh huat and lii hen results will same like latitude as both like to copy/follow latitude.....
01/03/2018 11:07
yfchong if not samarang.......already match liihen share prices.... no more kit kat........
03/03/2018 13:45
issac99289928 the Donald Trump administration is considering tariffs on more than 100 Chinese products ranging from electronics and telecommunications equipment to furniture and toys.

https://www.politico.com/story/2018/03/13/trump-demands-aides-strengthen-china-tariffs-460416

Donald Trump ban on china furniture is good for Malaysia furniture industry.
soybean ban from china is good for palm oil industry.
25/03/2018 19:11
goreng_kaki PE

Homeriz: 6.99
Hevea: 6.82
Liihen: 6.29
pohuat: 7.04
Latitud: 8.83

market cap
homeriz: 203m
hevea: 439M
liihen: 463m
pohuat: 312M
Latitud: 345M

becareful latitud stil overprice now
if apply PE 7 only worth RM 2.80
28/03/2018 16:17
yfchong Long time in freezer... no need to see lah
31/03/2018 18:08
issac99289928 White House unveiled plans for tariffs on $50 billion in Chinese imports across 1,300 categories, with 25 percent levies on Chinese goods ranging from electronics, aerospace and machinery to phones, shoes and furniture.

https://www.washingtonpost.com/world/asia_pacific/china-fires-back-at-trump-with-tariffs-on-106-us-products-including-soybeans-cars/2018/04/04/338134f4-37d8-11e8-b57c-9445cc4dfa5e_story.html?utm_term=.e9a72f9a84d3

25 percent levies on Chinese furniture. a boost for Malaysia furniture industry.
04/04/2018 22:16
lkoky fire!!
http://www.theedgemarkets.com/article/latitude-trees-vietnam-subsidiary-suffers-us11m-loss-fire
05/04/2018 13:45
goreng_kaki gg

kebakaran
05/04/2018 14:13
yfchong Freezer n fire
05/04/2018 19:48
issac99289928 Trump threatens China with new $100 billion tariff plan

http://money.cnn.com/2018/04/05/news/trump-tariff-china-trade-war/index.html

donald duck is arrogant and won't back down.then God bless Malaysia furniture industry
06/04/2018 14:03
albert787378 a new list of Chinese imports to be taxed is announced in coming days.

a Reuters analysis of Chinese imports shows that to quickly reach $100 billion worth of goods to tax, Trump may have to target cellphones, computers, toys, clothing, footwear, furniture and other consumer goods.

http://news.abs-cbn.com/business/04/23/18/trumps-next-100-billion-tariff-dilemma-hit-wal-mart-or-apple-store

25 percent levies on Chinese furniture. a boost for Malaysia furniture industry.
24/04/2018 10:55
issac99289928 trade war is unavoidable if donald trump is in power

https://www.axios.com/exclusive-trump-vents-in-oval-office-i-want-tariffs-bring-me-some-tariffs-1513305111-5cba21a2-6438-429a-9377-30f6c4cf2e9e.html
05/05/2018 07:27
issac99289928 Ringgit is weakening after GE. It will improve earning for Malaysia furniture industry.
13/05/2018 05:00
jibbie super lousy quarter result.
21/05/2018 19:02
yfchong Die die.... all region kaput...
21/05/2018 21:05
Jon Choivo Lower rev etc, but also alot due to forex gain in prev q, turn to forex loss in current q. Not fun i suppose.

Its about 5.5% of portfolio, i guess ill just keep. Might buy a little bit if it drops too much.
21/05/2018 21:54
apolloang 3.00 kambing,
21/05/2018 22:10
mamatede siot,better sell if you hold this. Management cant control profitability and swing very volatile. Boo
21/05/2018 23:06
trulyinvest Rm2 coming
21/05/2018 23:07
jibbie cyclical stock. dont see profits going up for next 2 quarters
22/05/2018 10:32
deepsea good time to collect such quality stock as the results are at bottom already due decreasing USD over the past few 6 months.......
sign of USD recovering against RM and going to break RM4.00 again.......
their raw material businesses such as panel board lamination plant and upstream plants are enjoying good returns from the increase in the prices of raw materials........
If their share price continue to drop further, I believe the management will start share buy back some shares............
22/05/2018 11:11
Flintstones Better cut loss. Remember furniture stocks are cyclical. They are not as stable as consumer stocks like nestle. Exporters enjoyed good business for almost 3-4 years. I imagine their business will remain poor for the next 3-4 years as well. Timing is important. Avoid value trap.
22/05/2018 20:55
Mark Goh Finally, share buy back is announced!
23/05/2018 10:11
Jon Choivo That is nice.
23/05/2018 11:56


 

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