Change CAP. CAP is on show...others counter all drop 2 days already but CAP maintain at 0.345-0.350....this mean that CAP has strong fundamentals to fight with this war...
The Board of Directors of LCTH Corporation Berhad wishes to announce that at the Eleventh Annual General Meeting held today, all the resolutions tabled were passed by the shareholders present. 这也许是5月首季业绩的消息-- we project the group could potentially declare DPS of between 1.8 sen and 2.0 sen in FY15-FY16, translating into 3.8%-4.0% div. yield.
RM0.27 cash per share. At current price of RM0.465, with PE 12x. If deduct the cash per share from the RM0.465, PE will be 5.4x. Really an under value company.
They need cash for expansion plan. The FuHao plant already at peak capacity. They are also getting new and renew the injection molding machine to cater for new demand from new customer Bose in Batu Kawan, as well as Dyson.
Overall, the improvement in earning mainly due to stronger USD currency. Almost all the earning for this quarter is from oversea customer. Next reason is the company streamline and right-sizing activities, which improved the earning margin.
The lower revenue in Q1 mainly is because lower order during Q1 2015 festive season and phasing out low margin business.
The cash per share for company slightly increased to RM0.27. With current price of RM0.48, PE without deduct cash is 4.8x. Which low in the manufacturing category, which normally around 10x.
Why people can accept LCTH not paying dividend but not cheaper China stocks(low PE and cash rich as well)? Why no fear LCTH account of being fake(not paying dividend) unlike China stocks?
I am not saying LCTH is overvalued at current price but investors are not treating local listed China stocks fairly. If PE for LCTH can reach 11 times by right fair value for Msports, Xinghe, XDL, CAP should be double or triple their current price(low PE and cash rich as well). http://klse.i3investor.com/servlets/stk/fin/5092.jsp
China stocks low PE is a totally different story. They have severe corporate governance issues. Even if their bank account shows RM100 mil cash, it later turn out to be faked. I am not being biased here, it has been proven many many times. As a matter of principle, I will never touch those China stocks irregardless of how good their stories are
LCTH is a subsidiary of Fu Yu Corp Ltd, listed in the main board of SGX on 14 June 1995 & control by Singaporeans. Beside Msia, Fu Yu Corp also has manufacturing facilties in China. It is not a Chinese Company. Do correct me if I am wrong.
After reading article posted by KW Tan on 11/05/2015 "AGM游记(2015)-- LCTH Easy Wong“, I think LCTH is not a bad company. Although it has not been given dividend for quite a long time due to some unforeseen problems, but it still has chance to grow.
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erkongseng
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Posted by erkongseng > 2015-04-28 06:11 | Report Abuse
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