beginner01, be careful for Huayang, bonus 3:1...but currently it is no power to give dividend. borowwing too high, quarterly sells not good. Existing unbill-sale (430mil) only able to sustain for 3-5 quarter revenue provided every quarter need with new sells of 50mil. No good in near term T_T.
From Aug 2015 to May 2016, Deposit and cash balance has little change from 52,331,000 to 52,102,000 and Reserve has improved from 42,023,000 to 57,969,000. Good thing is that borrowings have reduced fro 1,864,000 to 1,260,000.
Homeriz generated RM20.6 mil from their operations and only invested about RM 9.6mil in property plant and equipments giving a free cash flow of about RM 10 mil. Based on this 3 months result alone they can afford to pay 3 sen of dividend per share. Including next quarter, I think 4 sen and above shouldn't be a problem.
Homeritz: An excellent proxy for high dividend yield seekers, especially in an environment of tepid earnings outlook and ultra low/negative interest rates.
1)the company would benefit from strong US$; (2) lower leather price which will boost its margin; 3)FY16 DY of 5.9%, based on 50% payout ratio. 4)strong balance sheet with net cash of 16.7sen/share.
With consistently ROE > 15%, profit keep increasing, lot of cash, low DE, 20% profit margin, high DY, it's a no brainer to invest in Homeriz. At one point, I hope people ignore it, so I can keep collecting slowly at this price.
am keeping this as how i keep OKA, enjoying the div and also cap appreciation... half year gain more than 30% and got div sumore... i think homeritz will do the same... but must stay long.
Valuation We maintain our BUY recommendation with a higher target price of RM1.09 (previously RM1.01) after incorporating latest forecasts based on unchanged P/E multiple of 11x of CY17 EPS. Source: Hong Leong Investment Bank Research - 29 Jul 2016
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....
Ivan89
1,479 posts
Posted by Ivan89 > 2016-07-26 07:57 | Report Abuse
I guess coming qr is 2sen eps and 2 sen dividend annouchment