eps 24, pe only 8.44.some more got dividend. .I bought 2.28. may averrage on turn around.for long term POH HUAT. for now no huat ar. Market sensitive lah wait for fish to b half dead tired then easy to pick up.
mkt is waiting for the outcome of 1mdb hearing so just hope everything is fine. if Malaysia is downgraded by those credit rating firms then mkt will drop further...
Poh Huat recent strength for the past 2 years was driven mainly from the strengthening of the USD (from RM3.20 to RM3.60) and increasing dividend payout (from 2 sen in year 2012 to 8 sen in 2014). I believed the current price level had been reflected the news. Let's analysis these 2 factors should the trend be continued. Firstly, I was on view that the USD outlook could stay on current level without much drastic movement. Secondly, should the company continue paying high dividend, price should continue move north. However, it was rumour that the company may want to diversify into property development which could be pile down its cash balance for dividend distribution purposes. The latest balance sheet shows that it has RM20.9 mil "land held for development" where RM6.8 mil are jointly registered under a 3rd party (Note 6 of the annual report). Therefore, I believe the dividend could still maintain this financial year, but may reduce downward next year onward, due to the property project. Poh Huat may not have the competitive advantage to be a property players. Diversification to non-furniture operations also looks negative for me. After taking into various valuation factor i.e PE , NTA and yield, a "hold" strategy was recommended. Anyway, the share price for furniture stocks had been run up for the past 2 years. Maybe we could profit take and look for alternative stocks with better dividend yield ?
Value stock, well managed company. Macd about to cross over,price approaching mid line from below. its a limbo, how low can you go. Buyers bargain hunting, vol increasing. Watch on.
Poh Huat's bank borrowing Currency denominations in US dolloar is also high at about US$39.9 million. When Ringgit depreciate, they have to pay more. This is the only disadvantage.
m00077, it is US dollar denominated loan of RM39.9 mil (actual is RM40 mil), not US$39.9 mil.....I am on view to look for alternative is that "diversification" to property development is not so "transparent" like the recent 1MDB purchase and sale of land...haha...
KUALA LUMPUR: The ringgit is likely to remain weak at around RM3.60-RM3.70 against the US dollar in the near-term due to the large foreign holdings of fixed income instruments in Malaysia, says RHB Research.
"Meanwhile, an expectation of the US increasing interest rates and the risk of a possible sovereign credit rating downgrade by Fitch Rating, could still come back to haunt the ringgit again," it said in a note today.
RHB Research said the foreign exchange reserves posted an increase of US$700 million in April to US$105.8 billion as at April 30.
In ringgit terms, the foreign exchange reserves rose by RM2.7 billion in March to RM392.4 billion as at April 30.
RHB Research added that the figure was slower than the increase of RM3.7 billion in the previous month, due mainly to a revaluation gain as the ringgit weakened against major currencies. - BERNAMA
That US denominated loan part is sheer nonsense. This is a traditional Chinese business with hardly any loan and a huge amount of cash in the bank to more than pay any amount owed a few times over.
Cherry88, noted your comment. I will buy more if I had read your comment. Now Poh Huat price is moving up. I wait until it settled lower before moving in. Thanks.
I start to accumulate at RM2.08. Poh Huat's 1Q 2015 results: EPS=7.66sen, Total bank borrowing RM51.45 million, Bank deposit+ cash=RM66.29 million. Strong and healthy balance sheet, if 2Q 2015 earning is higher than 8sen per share, it should be good to accumulate barring unforeseen circumstances, especially political or economical reasons.
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....
redpeople
270 posts
Posted by redpeople > 2015-05-06 17:20 | Report Abuse
yes.. Pohuat is back.. hehe.. tomorrow top up sikit