One of the demands from US in the trade war is that China have to stop subsidize exporters. China's labour cost in coast area already higher than Malaysia. So the trade war end or not end Pohuat still benefit from it.
WASHINGTON (AP) — Sales of new U.S. homes increased 4.5% in March, the third straight monthly gain as the housing market appears to be cautiously recovering from a mortgage rate spike last year that caused homebuying to slump.
Attended yesterday AGM in Melaka. A representative from Pangolin also hand out her analysis to all shareholders. She is in view the company is undervalue. In short, the revenue and net profit has grew by 10% and 7%p.a for the past 20 year. Poh Huat is the top 3 furniture maker in Malaysia with net cash of RM71 mil or RM0.32 per share. It will benefit from the US-China trade war. She recommend the Board to pay higher dividend (75% payout) and dispose non-core asset of RM66mil (and of course distribute out this 30 sen per share as special dividend). By doing this, share price will almost double to RM4.32. Board of Director reckon her recommendation. It was told that Pangolin has previously given similar analysis to Poh Huat, and Poh Huat did follow their recommendation. Let's hope they will once again listen to Pangolin this round by paying more regular dividend and share price will sure move up. Another shareholder also explain that its peer (Lii Hen) has a very regular dividend stream and be able to command a higher PE and ROE. Should Poh Huat doing the same, share price will definitely move higher in par with Lii Hen valuation of higher PE and ROE
Australia Warehouse just bought last year Sept and this is a warehouse cum showroom for their furniture products. I don't think this is non core business 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....
lloydlim
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Posted by lloydlim > 2019-03-06 14:02 | Report Abuse
Should b good!