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.
@fortunefire, actually, LIIHEN can afford to pay higher dividend. In the past, it has been very conservative, paying only 40% earnings or less. However, over the past 3.5 years, the payout ratio is steadily rising - the question is - will this become a new trend? 2020 - DPS 4.7 sen / EPS 14.0 sen = 33% payout 2021 - 2.7 sen / 7.2 sen = 37% payout 2022 - 6.2 sen / 13.9 sen = 45% payout TTM 2023 - 7.1 sen / 12.2 sen = 58% payout.
With Net Cash of 37 sen, and trading at 87.5 sen, the business is available for sale for only 50 sen. It's long term EPS is 12 sen, i.e. this wonderful business is only selling for a P/E of ~ 4 times.
It's dividend yield is nice for TTM 2023 = 7.1 sen / 87.5 sen = 7.0%. That must beat EPF nicely at this depressed price.
If the Company continues to share its profits with shareholders (e.g. a payout ratio of 80% EPS should be very sustainable given the huge Net Cash position, even to cover very bad lean years), even without any Special Dividends, it's DY will be higher than 7.0% and this stock is well overdue for a re-rating up.
Personally, lower prices is sufficient reason for me to accumulate.
LIIHEN + 2 sen today. Together with 22 other green stocks offsetting 11 red stocks and several unchanged, my portfolio has made new all time high again today. This is new all time highs for the 3rd time in December month alone.
-Revenue gradual recover~ -last quarter net profit 15m include forex loss of 3m -upcoming quarter should has better forex gain as USD spike again since Jan -dividend > 6% p.a
LIIHEN +6 sen, or +6.19% close today. Thanks to LIIHEN and 21 other stocks in green to offset 9 stocks in red, my portfolio made new all time high again today!
The dividend is indeed powerful. It lowered my Average Buy Price from 85 sen down to 78 sen. Today, LIIHEN closed 1.06, highest close. This plus 17 other green stocks to offset 16 red stocks, is enough to edge my portfolio to make new all time high again today. Thank-you Mr Market!
Nice thing about under-valued, high dividend yield stock is that the longer we hold, the more dividends we received, the lower our average buy cost gets without doing anything.
Ikea has implemented a global pricing strategy that includes Ingka Group, an Ikea franchisee. It announced that it would invest 6.3 billion yuan in China over the next three years to lower its prices in the country.
Inter Ikea’s supply chain, which covers everything from raw materials up to the final mile – production, procurement, raw materials sourcing, in-house manufacturing, transport and logistics – makes products affordable without compromising on quality, sustainability, form or function, said the company.
“Our primary objective is to reduce costs across our supply chain,” said Waidzunas.
The goal is expected to be pursued through enhancing efficiencies, better utilisation of materials and accelerating automation initiatives
Malaysia furniture sector just like glove , beaten by China , hopeless !
The Malaysian furniture industry has been contending with challenges from China for over two decades. Despite this, it remains competitive in global trade. While most raw materials for nitrile gloves come from China, Malaysian furniture benefits from local sources.
Aiya , this kind of stock u buy and all your capital frozen there for 20 years then only only get back your money if the share price can maintain ! If drop then waste 20 years only , better look for stock like vstec , ranhill , ytl which share price can skyrocket !
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....
frankco
196 posts
Posted by frankco > 2022-10-29 12:24 | Report Abuse
it is time to collect this gem . It is all about timing .