We continue to like Lii Hen due to its strong balance sheet (net cash per share of 44.9sen as at 30 Sept 17), generous dividend payout (dividend yield of 7.2%) and ongoing efforts to adopt effective cost management. Moreover, we expect stable growth in the global furniture market due to growing real estate industry and increasing number of global retail stores.
Lii Hen: Gets RM5.87m claim from fire incident. Lii Hen Industries is getting a claim of RM5.87m from a fire incident involving its Muar production lines on Oct 27 last year. Lii Hen said the agreed claim sum comprises RM4.96m for plant and machinery, factory, and inventories; and RM906,993 from the sale of scrap material. Lii Hen said the total net carrying amount of these items was RM5.79m. Last year, Lii Hen said that a fire broke out at its wholly-owned subsidiary Favourite Design SB’s second premises in Muar, Johor. (The Edge)
I don't understand the present weak market perception of this counter...very low valuation...please share your views with reasons....any kind gentlemen or ladies...please come forward.
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Total Revenue 623.46 546.87 397.93 315.88 Gross Profit 145.58 117.3 58.73 48.09 Operating Income 94.82 73.05 36.93 25.36 Net Income 73.27 57.6 28.27 17.73
This is the track record of Liihen for the past 4 years. I will stay invested in the counter if there is no major negative change. So far, so good for Liihen and the dividend is one of the highest around.
Liihen's business is cyclical, so we may see some quarters more positive than others. But, overall, on a yearly basis, this counter seems to be growing well.
No doubt a higher US dollar would be better for Liihen, but this is not the only factor that will influence its performance. Liihen seems to be improving its efficiency internally as well to counter the effects of the currency exchange.
Is it quantitatively cheap, assuming no growth? Well, its ok.
But if you price in the growth (even in absolute USD terms), and management, its pretty cheap.
Currently, RM is gaining against the USD, but i think this is temporary, like the rally of the USD against the RM last year.
The US economy is still moving fantastically, and trump tax cut on repatriation of profit (15.5% from 35%), will result in almost 1 trillion repatriated, apple alone is 252bil.
That is alot of demand for the USD. Which should push it up. In addition, there is also the interest rates in the US being raised.
Like everyone says, its a bit of a no brainer. I topped up at 3.41 before the run up to 3.6, before falling back to 3.38. I may buy a bit more soon.
The difficulty is in ensuring you do not extrapolate the current into the future permanently. Which is not easy.
Many people treat LIIHEN like Forex counter , can't denied RM turn strong will hurt their profit,but they export mostly to US, consider to medium level market, do u think Liihen will seat there to die without raise their selling price to encounter it??And liihen is Super dividen cow among bursa.
Market think the performance of the company will be affected by currency exchange USDMYR (USD depreciate), because most of the revenue come from US.
Posted by huahtai98 > Jan 9, 2018 09:40 PM | Report Abuse
I don't understand the present weak market perception of this counter...very low valuation...please share your views with reasons....any kind gentlemen or ladies...please come forward.
For the last 4 trading sessions it was hey-day for the manipulators to depress the share price. Investors who have run out of ammunition to average down, just hold tight to this counter for a timely rebound.
hi Jamie, I dunno other sifu. But i m normal investor. if put @ bank max 4.x% dividen yield. I think this liihen can produce 7.x% dividen yield not bad.
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Posted by darkstar > 2018-01-09 13:40 | Report Abuse
We continue to like Lii Hen due to its strong balance sheet (net cash per share of 44.9sen as at 30 Sept 17), generous dividend payout (dividend yield of 7.2%) and ongoing efforts to adopt effective cost management. Moreover, we expect stable growth in the global furniture market due to growing real estate industry and increasing number of global retail stores.
Hong Leong Investment Bank Research - 09 Jan 2018