Let me guess... 12 sen EPS and 30 sen dividend

After Ukraine - Russia war, a lot of tiles may be needed for rebuilding the country.

What I hope the most is payout the 400 mil to us. If they do not want to pay out, then better invest in something with 10% IRR or higher. The worst is to keep the 400 mil until our last day.

In Malaysia, Yamaha has the biggest market share and it has been so for years.

He could have thought of that when he was much younger. If he did recently, he had just lost a good opportunity to do so in last year when HLIND was hit by pandemic and stock price dip unreasonably. Now the industry is experiencing strong rebound. The earning in current fiscal year has a very good chance to break record high. It was hard and is only going to be harder to privatise this company. My personal view is that HLIND is still too small to worth his energy, time and patience to do so. I think he'd only pick the big game like Guoco eventhough he failed at last. At the age of 82, I don't think he has the time and need to do this either. The best choice is to cheer with minority shareholders and make everyone happy like the late Tan Sri Teh did.

I feel that HLIND is led by management and owned by major shareholder who are focussing on the profitability and stability of the business only rather than market cap and liquidity of the share. I don't think they would even spend a night to think about bonus issue. But higher ordinary dividend and a better than history special dividend is something more likely to happen. The large pile of cash, I predict that it would be released in next 5 years either in the form of dividend or business expansion (e.g. the plan to expand Guocera). The reason is very simple, if you can't find a good investment opportunity even in a recession, why continuing holding the cash beyond the reasonable level? Other than that I actually hope one day Hong Leong Yamaha and Guocera can be listed seperately to maximize the total market cap. I just don't see the synergy and value to put motorcycle and tile business under the same group. It is currently being like that probably because Guocera is not big enough to be justifiable as a seperate listed company but this could be different when the RM 400 mil expansion takes place. It is about two times the current property, plant and equipment of the Group.

Hi Ykloh, the price of this stock is very sensitive to the dividend amount. A small increase of dividend will cause the price to grow significantly. This is also partly due to its lower floating tickets (which is reflected by its lower trading volume also). One year later you might want to recall this.

Hi Messi, according to the above news, 700,000 motors could have been sold in Malaysia in 2022. I think the real figure is above 680,000 or around that. In addition to that HLIND is planning to build 400 mil new porcelain plant (Guocera expansion) and complete it by end of 2024. I believe this will be funded internally and only costs a fraction of its net cash. Though HLIND did not disclose the IRR but I expect this to result in the increase of EPS by above 10 sen annually. Although main markets might be heading to recession but energy crisis in Europe for the present and coming years might be a golden opportunity for high energy consumption industry in Asia such as Malaysia which has the access to both the advanced technology to meet EU standard and cheaper energy prices.

Basically it says that record motorcycle sales (Malaysia) observed in 2022.

Hi Messi, just use Google translate. I think Google can translate better than I do. :)

High energy prices in Europe makes our tiles more competitive in international market. Don't forget that Italy and Spain are top 5 export countries in the world. They are both hit with high energy cost and yet their sales are intact, that shows how high is the demand.

https://www.enanyang.my/%E8%A6%81%E9%97%BB/%E6%91%A9%E6%89%98%E8%BD%A6%E5%95%86%E6%80%BB%E4%BC%9A%E4%BB%8A%E5%B9%B4%E9%94%80%E9%87%8F%E6%96%99%E5%88%9B%E6%96%B0%E9%AB%98

In 3 months time it may drop back to RM 14.xx because next year profit likely to be not as good as this year.

Floating tickets are drying up. Share price will be lifted up like the hungry alligator jumping out from the water.

The sales was boomed by re-opening of Malaysia-Singapore borders. In mid-term future, the sales of motorcycles will be supported by rising car prices and B40's weaker affordability for car.

When the coming quarterly result is finally announced, the share price has a possibility to reach RM 10.

Hi Alexnada, because it is going to show record high of quarterly revenue (quite sure) and EPS (>50% sure) in the quarterly report that is to be released soon. And looking at the share price pattern, I suspect someone is trying to put a ceiling in order to collect more tickets from impatient shareholders before the good news is finally released.

I'm expecting 13~14 sen EPS for Q3 and 30 sen dividend per share next year.

I'm trying to be conservative

It has now happened for quite some time. With recent Q4 result I think the price will inch slowly towards RM 10 till the announcement of next quarter result. For the share price to grow to RM 10, it requires annual EPS of close to RM 1 and annual dividend that is close to 60 sen, in view of rising interest rate environment and trend.

May I know where to search for Indonesian CPO monthly stock balance? Thanks

Let's guess how much is the EPS for Q2 for plantation sector. Me: 54 sen

@1LegKick, very good sharing.

It is accumulating energy and momentum to revisit RM9 or higher. This may happen by end of Aug.

Not surprising with defensive business and good dividend yield.

And you know how much pop corn money you can save by watching movie at home throghout the year?

At time of recession, middle class will reduce their expenditure for entertainment. But I think sound speaker is quite basic because the cheapest entertainment one can have in a modern day is to watch movie at home (especially for a family of 4 or 5) instead of going to cenema, or listening to radio instead of going to concert. For teenagers, it may be playing computer games instead of going out for vocation. None of this can be done in a decent way without a proper speaker or sound system. First they did it because they have the money but not the freedom to travel due to covid, now they are going to do it again because they don't have enough money for more expensive activities. Same thing for different reasons.

Some fund managers might be looking at these opportunities to buy a stake in FPI anytime from now.

I anticipate the attraction will turn strong when the price touches RM 2.50 (dividend yield 8%). I believe Q2 result will remain strong and so it gives very strong support at RM 2.50 from now to end of August. By end of August the price movement will be again driven by Q2 result and US economic outlook. So I think reward is higher than risk at prices below RM 2.50.

There's more small shareholders in this stock. So price is more volatile. According to TA downside risk is high so it encourages TA investors to sell. Fundamental wise I guess in coming one year profit will stay stagnant because of interest rate hike and inflation which will erode the purchasing power of consumers. This will somewhat cancel off the bullish outlook of smart audio and musical instrument demand. To be Conservative, expecting annual EPS 35 sen and dividend 20 sen.

Hi Pinky, according to my calculation the outstanding options if fully exercised will cause the total number of shares to increase about 2.6%, am I right? Thanks

To be conservative, assume EPS and dividend in 2022 to be the same as 2021.

Not much "useful" information in the first part of AGM. The screen also turns blurr sometime. The video quality is not so good.

Looks like the report will only come out by tomorrow.

Hi YoongGer, that's built on one assumption where FPI is able to retain good customers and high margin works.

Let's guess the EPS for 2022 Q1. Starts from me. 9.9 sen or better.

If there are no contradictory views they price won't stay at 14.50 now. This price is good for both buyers and sellers. Haha.

Crossing my fingers

Anyone here own a palm oil plantation? What is the cost per metric tonne of FFB for small planter (labor, fertiliser, pesticide and herbicide included) ?

EPS reduction in Q1 is expected to recover once the raw material cost increase due to Ukraine-Russia war is transferred in Q2. Management is aiming for double digit revenue growth in consecutive 3 years starts from this year.

Hope there is EPS 11 sen per share

@JKing, may I know how did you get the magic number RM 25-30 million net profit for 2022 Q1?

I revised my estimation on the net profit of the plantation segment for 2022 Q2 to 40 sen.

@JKing, so you expect EPS 2022 Q1 to be about the same qoq.

I think FPI pay 1800 and above. Last year was 1500 if not mistaken.

@LossAversion, have you visited UP plantation before? Did you visit the refinery? I hope I would be able to visit these places one day but getting the entry permit might be difficult. Visiting Bernam Bakery should be a more realistic goal. :)

I bought a little bit at below 15.50 not long after market open today. Some unstable shareholdings might have been knocked out. But still, EPF might be continue selling. I think next 12 months we might be able to get total RM 1.50 dividend per share. I hope UP boss wouldn't laugh at me if I'm wrong. :)

Other than that, some companies that practice lean manufacturing and just-in-time (JIT) manufacturing has changed their strategy, that is, to build stock for critical components. Also, the addition of inventories are only around 5% of its cost of sales and so I think it is within reasonable level. Furthermore, if it is in expansion mode to bring in more projects / customres, it will have to purchase and stock inventories for these new projects in advance.

I know some renown home appliances manufacturer was forced to produce "less smart" product variant because short of chips instead of planned smart product.

@gohku, I agree with you on that point to a certain extent. And I think that's why FPI own different subsidiaries at different addresses.
@Thirai Thiraviam, if there is serious shortage of semiconductor chip the finished goods cannot be completed. So short of a cheap component can cause the whole expensive FG locked as inventory. So it is possible. The inventories has came down from a peak in Q2 (157 m) to Q4 (89 m). Inventory turnover in 2021 as a whole is 11.5, lower than 2019 (14.5) and 2020 (13.9) but about the same compares to 2017 (11.6) and 2018 (11.4).