If excluding PPE & stock written off amounting to 14,464, PBT shld be 5,744 instead of loss of 8,720. The only thing is they cant estimate insurance claim as at today otherwise they shld include the compensation into other income as well.
Not necessary, this company big loss due to Fire Incident this quarter. Causing Inventory and plant write off rm13.9 Million, which is one off expenses and might able to get claim from insurance in coming quarters.
too many buyers were buying/collecting ...........the company manages to buy back few lots only. Ha ha ha ..........anyway, few kiasi/stupig fools sold at below 3.20........thank you for selling below 3.20....he hee hee
At first glance, investor would think that Latitud Tree has a very rich valuation at almost 20x trailing PE. However, if you look closely at their financials, the PE actually went up substantially due the the very weak quarter of 3Q18 and 4Q18 (FY end in June), where the company only managed to record a profit of RM2.4mil and a loss of RM13.4mil respectively.
FY19 seems to be a lot better given that market demand from US for furniture has increase substantially due to the US govt decision to imposed a 10% tariff on all furniture coming from China in the middle of 2018. Management has actually indicated that they were forced to reject some of the orders from their US customers due to the fact that they are already running at almost full capacity. At the moment, they only accept orders that commands higher profit margins which actually bodes really well for investors.
Given that more than 90% of their sales are for the US market, the strengthening of the USD vs RM would only help increase the margins even further.
Investors should expect a sharp rebound of the company's profit in 3Q19 (expected to be out this month) due to higher demands for higher profit margins products and also a more favorable forex exchange rate during the period (average 3Q19 for USD is 4.09 vs 3Q18 of only 3.92).
Total profit should reach at least RM50mil in FY19. At the current share price the company is being valued at only 7.5x PE. PB is also low at only 0.7x.
The company has a very strong balance sheet with a net cash position of RM123mil as of Dec 2018.
This company is actually a beneficiary from the escalation of the trade war between US and China. (Actually most furniture companies are beneficiaries. But in particular those with high US concentration sales like Lii Hen and Latitude)
65% of US import of furniture comes from china (amounting to around USD 30bil ) Since mid of last year most US furniture companies has started to diversify their value chain for furniture outside of China of which Vietnam is the main beneficiaries of this. The difference between Latitude and other Malaysia listed companies is that Latitude main plant is actually located in Vietnam. Since end of last year, the company had received substantial increased of orders from their US customers (US market consist of 95% of the group revenue and profit). This has forced the company to only accept high margins order.
Administrative expenses increased by 2.7m(49%),from 5.6m to 8.4m. This amount is even greater than total loss in current quarter(2m) but there is no explanation provided in qtr report regarding the hike
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....
Posted by apolloang > 2018-08-28 17:20 | Report Abuse
apa ini loss also price can so high,tipu ar?