tjhldg, true as well. Looking it from that angle you may be right that the pressure might not be as great. However, this is highly dependent on the ratio of day contra kakis to T-3 contra kakis to those who would pick up. My view is the same, to hold and not contra for mid term play. Thanks.
yes...I think it's time for LCTH declare again the Dividend to reward shareholder. Shareholders should voice out this in coming AGM if management didn't mention this.
If it hits RM0.50 I have comfortable margin to let it go. On renewed Divd policy I hve little faith in the Company. 70% is Spore owned. What benefit is for the Spore owned Com if the Directors exercise it - repatriating RM at the current shitty rate of Sing$1:RM2.60 is pure stupid.
The latest article by The Edge reported that the company plans to buy a piece of land in Penang for further expansion due to maximum utilization. As layman view, I think the prospect of the company is bullish, otherwise the company will not think of expansion just after 1 year of turn around following the restructuring of certain operations.
In the fourth quarter of 2014 financial report, the tax is positive (1.5mil) instead of negative, LCTH states that 'these were due mainly to the utilization of unabsorbed tax losses in the reporting periods and the recognition of deferred tax assets to the extent that the unutilized tax losses carried by a wholly owned subsidiary be offset by foreseeable taxable profit in the future.'
In 2014 annual report, the company has unutilized tax losses of 47mil, this depend how well the company plan their tax planning, if all these could be utilized to offset the foreseeable taxable profit, 47mil is huge and potentially a hidden assets to the company.
I don't know much about tax, anyone here can explain further on unabsorbed tax losses and in what circumstances, a company can utilize it to offset the taxable profits. Thanks.
A comparatively smaller company with a share capital of Rm 72 million consisting of 360 million shares with face value of 20 sens.
Its main operation covers the manufacturing and sub-assembly of precision plastic parts and componants for both domestic and international markets.
LCTH fabricate precision moulds and dies for industries in automotive, medical. electrical & electronics and telecommunication.
Its last quarterly earning for quarter ending 31st December, 2014 was 1.65 sens which is 129% higher than its previous quarter of 0.72 sens. Net assets per share is 52 sens. It has a cash per share of 23 sens with negligible borrowing. A small healthy company with an up-trend earning.
Its chart looks bullish with strong OBV. It is at the tail end of its wave (i) of major wave 3 if wave (i) has only 5 waves.
If its next pullback is of a lower degree, a sub-wave vi correction, then it is going for 9 waves for its wave (i).
LCTH: Precision plastic injection mould manufacturer has plans to spend up to rm65 million in capex in 2015 as it aims to secure more manufacturing orders.
The Johor based firm whose customers include HP, Bose Corp, IBM and Dyson is looking to obtain more orders from its existing customers as well as new ones.
It is involved in the manufacturing and sub assembly of precision plastic parts and components as well as fabrication of precision moulds and dies. It is also involved in the manufacturing and assembly of precision plastics moulded products fro electrical, electronics, healthcare, food and petroleum industries.
It is proposing to buy a land for manufacturing expansion pending approval in Penang, costing rm30 to rm40 million.
It also has land in Johor to build another plant costing rm15 million to rm20 million.
With the significant capex spend it is looking at it, LCTH still flush with cash. As at Dec 31 2014 the company net cash stood at rm73.8 million.
For the quarter ended Dec 31 2014 its net profit went up more than 10 times to rm5.95 million from rm438000 a year ago, mainly due to its focus on higher margin projects with lower costs as a result of the right size exercises.
For the full FY2104, its net profit slipped 18% to rm12.9 million from rm15.8 million in the previous year including one off gain of disposal of property, plant and equipment in FY2013.
Excluding this one off gain in the year 2014 the group achieved better performed in terms of profitability in FY2014 compared with FY2013.
one thing for sure they won't decalre dividend for the next 2 yrs to come as they need $$$ for capital expenditure...At 0.48 it is totally overvalued compare to its earning power and asset...
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
tradeview
608 posts
Posted by tradeview > 2015-04-03 09:19 | Report Abuse
tjhldg, true as well. Looking it from that angle you may be right that the pressure might not be as great. However, this is highly dependent on the ratio of day contra kakis to T-3 contra kakis to those who would pick up. My view is the same, to hold and not contra for mid term play. Thanks.