I just hope Lii Hen can continue dishing out better dividends which was what they were well known for. Now dividends have been much lesser compared with previous years. Apart from that, there has been almost no news about Lii Hen at all. Hope management will make themselves more visible to investing fraternity.
congestion at port in US is easing and USD is steadily creeping up. Order from China will shift to Malaysia due to covid lockdown measures.. These should be good for the Liihen.
Coming quarter will be good due to the strengthening USD + the easing of the freight charges. Both LiHen and Pohuat will report skyrocking results soon. I was told they managed to increase the ASP and pass all the raw material cost increases to customers.
@cherry88, this is smtg good to hear. I am not sure about skyrocketing results but I do look forward to good results and potential recovery of their generous dividends haha
High inflation is not a good signal for a growing economy, rather a worrying signal that economy will slow down quicker due to consumers being more cautious. High inflation to food costs, raw commodities, energy, logistics will all lead to less spending on unnecessary items like apparel and furniture. But strengthening of US$ does make export cheaper which supports Lii Hen's bottomline.
The White House is reviewing the penalties imposed under former President Donald Trump — which raised prices on everything from diapers to clothing and furniture — and could opt to remove them altogether, Biden said in addressing the nation from Washington on Tuesday.
Finally , the worst news come to hit Malaysia furniture industry after glove once again China furniture will rob your market !
@Natsuko I don't think Biden will dare to do that as most Americans still prefer trade war with China due to negative perception and cold relations with China. The way I see it, Biden may even lose the coming elections and won't be surprise if Donald Trump makes a come back. You may disagree with me but Donald Trump did a better job than what Biden did.
If full vaccination would be able to prevent this in future, I foresee quarterly EPS to normalise to around 15 sen per share due to raising demand for wood furniture in the US. Don't forget that Liihen is still in expansion mode even if under pandemic.
For this particular stock at the present, I couldn't figure a better time to buy it, for a handsome capital return when she announces next quarter earning after CNY 2022.
Entitlement subject Bonus Issue Entitlement description LII HEN INDUSTRIES BHD ("LHIB" OR "COMPANY")
BONUS ISSUE OF 359,999,976 NEW ORDINARY SHARES OF LHIB ("LHIB SHARES" OR "SHARES") ("BONUS SHARES") ON THE BASIS OF TWO (2) BONUS SHARES FOR EVERY ONE (1) EXISTING LHIB SHARE HELD AS AT 5.00 P.M. ON 1 JULY 2022 ("ENTITLEMENT DATE")
WILMINGTON, N.C. — Rising inventories, orders placed months ago still in the pipeline softening demand are confronting furniture retailers with fresh challenges in the pandemic’s wake.
With so much product on hand and on the way the industry’s long overdue price increases could be at risk due to the potential for discounting to move goods. That’s particularly worrying since those price hikes were largely tied to increases in raw materials and transportation costs. With declining unit sales, potential discounting poses a particular threat to margins.
We cannot write off a possibility Donald Trump may get re-elected as President of US again. His supporters are huge and strong. High chances he will be nominated by Republicans to topple Dems in the coming midway elections. Thus, Trump will again run a boycott China campaign.
Dont hesitate just sell off all bonus share to take profits before it drop to 60 sens ! Dont be top glove 2.0 ! During recessions and gloomy economic forcast furniture sector will be the worst impacted !
This looks like a good punt, as part of a diversified portfolio for the longer term, patient dividend investor. Valuation is undemanding near 80 sen. Net cash. Good dividend yield, ranging 5%-6% or more potentially at this price and probably good over next 5-10 years plus possible price doubling over this period.
I was told from a Muar people saying that the company will "stop" for 3 months till after CNY oh...(However, i don't think so, but hope it is a rumours)
A complete operation halt for three months will be worse than Covid lockdown. If the news is genuine, which I doubt so, the management would have to make annoucement in Bursa as such decision will have material impact on the share price. However no such annoucement can be found.
Nevertheless it's quite likely that furniture demand and therefore production have slowed considerably in recent months. I shared the news in Jun that US furniture retailers were facing serious inventory problems. It's likely that customer orders are drying up now. But such info should have been reflected in the current share price. The share price has declined by a quarter since Jun.
The wood manufacturing sector's prospects appear to be dimming even with the easing in elevated raw material costs and supply chain issues, as the industry is facing yet another obstacle — slowing furniture demand.
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....
demdem1912
64 posts
Posted by demdem1912 > 2022-04-15 15:52 | Report Abuse
Sleeping counter.......