Posted by trader808 > 1 month ago | Report Abuse

1. All these while since 2023 when the appeal proceeding is still on going, Leong Hup has treated the legal penalty as a Contingent Liability. Hence it is placed and categorized as an off-balance sheet item.

2. when it is place as an off-balance item, the penalty and payment is assumed to be 50%/50% chance and hence payment is only considered possible -> Disclose a contingent liability.

3. Last Friday LHI in its filing with Burse confirmed CAT has rejected its appeal and uphold the MYCC verdict and the payment of 157m penalty.
When this happened, the penalty has become greater than 50% and the payment is highly probable.

4 Going forward LHI may have to respect the verdict, recognize the penalty and makes a provision and charge it against profits in P/L accounts.

5 Despite the decision, the Company together with its legal team still try their best with determination to downplay the situation. Actually, the legal notice by MyCC has been issued since 2023, but Leong Hup has continued to disclose it only as a contingent liability up to the latest quarter.

6 IMPORTANT NOTE (in December 2024 latest news):
Competition Appeal Tribunal (CAT) has rejected the request by LHI's subsidiary, (LFM) to pause or temporarily stop ("stay") the enforcement of the fine. This means that as of now, LFM is STILL REQUIRED TO PAY THE PENALTY.

7LHI in its filling with Bursa again to inform investors it intends to seek another type of temporary relief known as ad-interim to stop the enforcement of the fine while the review is ongoing. There is no guarantee that the review is forthcoming.

8 In my opinion, the payment of penalty seems highly probable now considering the latest news and decision by CAT. Auditors are RISK-AVERSE and will definitely require a provision to be recognized in the coming quarter results. In the end as much as we may not like it but a fall in profits by the provisional amount of RM157m is reasonably expected.

9 This has been a disturbing news for LHI and Market has reacted somewhat negatively. It is now traded at 60sen down 4 sen.

10 This is my personal perception and opinion on LHI.
This is not a recommendation to buy or sell and much less intended to influence your strategy and decision.

11 Happy trading
9/12/2024

Posted by Chipee > 1 month ago | Report Abuse

Go to high court just like GRAB against MyCC. GRAB won the case. So this is expected with LHI to all the way to High Court.

Posted by warchest > 1 month ago | Report Abuse

we have precedent like the case of Grab. LHI just need to file in application of judicial review with Court of Appeal. Eventually Grab won. Just keep fighting

Posted by Ravetidus > 1 month ago | Report Abuse

refer to the evidence shared by MyCC (including messages), then only u can make informed decision

Posted by GLNT > 1 month ago | Report Abuse

Share buybacks incoming. First time ever in history

Posted by Chipee > 1 month ago | Report Abuse

Have to see the context of the messages. Peers in any industry always in communication. If their conversation is about cost of corn and soybeans are going up. That's just stating facts. As peers and also competitors, conversation on HOW MUCH they are increasing their price is like revealing their secret and no experience business people will do especially on commoditize products. Pricing is their advantage.

Ravetidus

refer to the evidence shared by MyCC (including messages), then only u can make informed decision

Posted by GLNT > 1 month ago | Report Abuse

Share buybacks everyday, following Shin Yang?

Posted by Eggplant > 1 month ago | Report Abuse

PPB has filed judicial review against MyCC. How about LHI ...?

Posted by markgold > 1 month ago | Report Abuse

Be greedy when others are fearful.

Posted by warchest > 1 month ago | Report Abuse

It is undervalued. They have the regional exposure not only in Malaysia but all the major jurisdictions in ASEAN, catering over 700mil population. just started their share-buy back but already purchase >5mil shares - more to go. Even the worst outcome - they need to commit to the fine of RM155mil, within a quarter they already settled it with their strong free cashflow

Posted by protoking > 1 month ago | Report Abuse

big big selling pressure, see whether they can withstand

Posted by GLNT > 1 month ago | Report Abuse

Boss happily buys 3mil shares everyday

Posted by Eggplant > 1 month ago | Report Abuse

The company buys back shares, not the boss

Posted by SMInvest > 1 month ago | Report Abuse

There are many benefits to a company buying back its own shares, including:
Increased earnings per share (EPS)
Repurchasing shares lowers the capital base, which increases EPS. This can make a company's earnings growth appear better than it actually is.
Higher dividend yield
After a share buyback, a company can benefit from a higher dividend yield.
Attracting new investors
A buyback can boost a stock's EPS, which can reduce its P/E ratio. This can make the stock appear more attractive to new investors.
Rewarding shareholders
A buyback allows a company to return money to shareholders, especially if the company believes its shares are undervalued.
Tax efficiency
A share buyback can be taxed at a lower rate than dividends.
Defense against hostile takeover
A company can use a share buyback to create a defense plan against a hostile takeover.
Offsetting stock-based compensation
A company can use a buyback to cover up stock issuance to managers, which dilutes shareholder ownership.
Efficient use of cash
A company with substantial cash reserves can efficiently use its money by buying back shares.

Posted by stevenckheng > 1 month ago | Report Abuse

so much treasury share, gonna issue bonus and warrant ?

Posted by speakup > 1 month ago | Report Abuse

Likely share dividend coming

Posted by Chipee > 1 month ago | Report Abuse

Share dividend will not subject to 2% tax right?

Posted by gankm > 4 weeks ago | Report Abuse

5 years ago the IPO price is $1.10, now the price is only $0.60. As long as the share price cannot goes above $1.10, LHI definitely a bad company with bad management that only care for themself and their own pocket.

Posted by trader808 > 4 weeks ago | Report Abuse

1.In 2019 LHI has IPO up to 937.5m shares of which 687.5m shares were offered for sales and the remaining 250m shares were public issue of new shares to institutions and the investing public.

2. The scheme of the IPO also means that the owner has cash out 687.5 x 1.10 = RM 756.25m immediately after listing. Hence, with that kind of fortune , it is not surprising that they care little about the company share price performance.

3. Despite its remarkable and commendable profit performance of 218m in 2022 and 301m in 2023 and the 9 month cumulative profit of 288m in 2024, the counter is trading at an absurdly disheartening PE of 5.8x with the share price as low as 59sen. That is a disastrous collapse of 46% from its IPO with little sign of recovery in the near future.

4 In addition, the company is now burdened with a penalty of 157m fines by MYCC. Until this is resolved and paid, the bears will continue to charge and push down the share price.

5 Management has come to its sense and come forward to defend its falling share price by aggressively buying back its own shares. Company has engaged in daily share buy back in multiple millions of shares to avoid a serious fall.

6 LHI is a somewhat dividend stock and it has a dividend policy to pay out a high percentage of its profit after tax. In 2014 it paid out 0.0145 plus 0.013 or 0.0275 dividend per share. The company has 3650m shares and hence it paid out 3650m x 0.0275 = RM100.4m In the unfortunate event of penalty and settlement, shareholders may have to scarify and forgo the dividend. Just a guess and may not be true.

7. The LAU family owns more that half of the company arising from the enlarged capital during IPO so the family collects more than RM50m in dividend yearly. Again. it is something they would seriously think about very hard.

8. The ongoing problem with MYCC is a temporary setback. However, until this is settled, I think the bears will continue to bash down the share price. Bad days have arrived and the worse days are still forthcoming.

9 LHI is riding on a rough patch and journey into muddy water. Nevertheless, i still strongly believe LHI will recover spectacularly once the penalty issue is settled.

10 Every cloud has a silver lining. Every unpleasant situation has a positive side to it.
You may now or going forward collect LHI at incredibly low price and profit from it.

11. Opportunity may knock on your door.
Wait patiently and trade wisely
25/12/2024

Posted by SMInvest > 4 weeks ago | Report Abuse

accumulating...................

Posted by SMInvest > 4 weeks ago | Report Abuse

then hold tight .......................

Posted by Eggplant > 4 weeks ago | Report Abuse

Who will win? MYCC or Leong Hup ?

Posted by SMInvest > 4 weeks ago | Report Abuse

win win

Posted by Kevin Tam > 4 weeks ago | Report Abuse

The penalty of Rm150 already reflected at LHI share prices in past 2 months plus n this one off penalty will not affect its profitability much, market n retail investors have been overreact for this penalty issue. With undemanding valuation at below 61cents, investors should buy in at this moment (you make your own decisions though)...

Posted by Ravetidus > 3 weeks ago | Report Abuse

Factors to consider before investing:
1) Strength of USD vs MYR;
2) Rising corn and soybean price recently (which forms about 50% and 25% of feed costs respectively);
3) Bird flu outbreaks around the world;
4) Potential reversal of MyCC decision thru court battle (long term)

Posted by Ravetidus > 3 weeks ago | Report Abuse

@chipee, after u read the chat evidence posted at MyCC website then u know whether they are discussing about the rising costs of corn and soybean prices or pakat pakat issue invoices within same period at same price

Posted by Chipee > 3 weeks ago | Report Abuse

You have the link to the chat website?

Ravetidus

@chipee, after u read the chat evidence posted at MyCC website then u know whether they are discussing about the rising costs of corn and soybean prices or pakat pakat issue invoices within same period at same price

Posted by Eggplant > 3 weeks ago | Report Abuse

Leong Hup's Q4 results will be good

https://www.bernama.com/en/business/news.php?id=2377026

Posted by SMInvest > 2 weeks ago | Report Abuse

财经新闻
高庭批准5饲料厂商 暂缓支付4.15亿罚款
2025年01月02日
https://www.enanyang.my/%e8%b4%a2%e7%bb%8f%e6%96%b0%e9%97%bb/%e9%ab%98%e5%ba%ad%e6%89%b9%e5%87%865%e9%a5%b2%e6%96%99%e5%8e%82%e5%95%86-%e6%9a%82%e7%bc%93%e6%94%af%e4%bb%98415%e4%ba%bf%e7%bd%9a%e6%ac%be

Posted by Eggplant > 2 weeks ago | Report Abuse

So they still need to pay the fine, just the date is postponed ... ?

Posted by Meowmeowbibi > 2 weeks ago | Report Abuse

Obviously, this counter manipulates the share price itself, never care about the investors. after they gain enough money from investors, they will delist frm
board.

Posted by Meowmeowbibi > 2 weeks ago | Report Abuse

Rubbish

Posted by speakup > 2 weeks ago | Report Abuse

Scammer dah mali i3

Posted by Meowmeowbibi > 1 week ago | Report Abuse

No matter how much money in single quarter , the share price will never up, there must be somethings behind it, so don make any illusions on this counter. i hv been holding it since its IPO, from average price 0.94 then 0.88 , 0.78 , 0.70 and latest AP at 0.68, Every time i bought it with positive mindset. but the price’s nvr been positive, losing more and more and more. time to let it go and nvr look bk.

Posted by gankm > 1 week ago | Report Abuse

yes, totally agree with Meowmeowbibi. Leong Hup International is a rubbish company. Those Lau family who is sitting in the board of director are con man.

Posted by protoking > 1 week ago | Report Abuse

probably investor in the end pay for their fine...

Posted by Meowmeowbibi > 1 week ago | Report Abuse

when US and Asia market drop, LHI follows the trend, but why when Us and Asia market up, LHI never follows, anyone telles me why.

Posted by Eggplant > 1 week ago | Report Abuse

No one can explain or describe this irrational stock, dude

Posted by Meowmeowbibi > 1 week ago | Report Abuse

0.560 0.51 0.49 0.45 then up to 0.50 everyone is happy then buy again, buy buy buy then harvest again.

Posted by Meowmeowbibi > 1 week ago | Report Abuse

over and over again…. then the director make a announcement to delist, buy the share from share holders at the price of Rm0.510… The family 袋袋平安。

Posted by Eggplant > 6 days ago | Report Abuse

Nice script. When are they gonna execute the plan? 😆

Posted by Meowmeowbibi > 5 days ago | Report Abuse

The script was long ago written b4 its IPO, u see, they buy back a lot of share, instead of giving dividends to investors. yet the share price goes down, so obvious… but there is nothing we can do even we read the script. just be harvested as grasses.

Posted by ahhanbb > 5 days ago | Report Abuse

You think LHI is still the number one broiler day old chicks in Malaysia? Huat Lai Resources has overtake them. This mean for the pass 5 years, there is no increase of new farm from LHI in Malaysia. Maybe the CEO of Malaysia is sleeping and play pickle ball everyday. Lol..

Posted by ahhanbb > 5 days ago | Report Abuse

I have ask a few remisier and friend of Muar about this company. They say this is a 老千company. Lot of their staff rugi besar because they apply the IPO at RM1.10. You see, even their own staff hard earn money they also wanted to cheat.

Posted by Meowmeowbibi > 3 days ago | Report Abuse

The family does not care about the reputation, if they do, the share price surely over Rm3.00 today, they just care about their pocket money.

Posted by ahhanbb > 1 day ago | Report Abuse

As at 31st Dec 2022 LHI have 161 Baker Cottage outlets. As as 31st Dec 2023, LHI only have 153 Baker Cottage outlets. 8 outlets has been closed. Will there be any further decline of Baker cottage outlet in year 2024? Sincerely speaking, their roast chicken & pastries not very nice. After few time buying, I have stop completely visiting baker cottage.

Posted by Eggplant > 9 hours ago | Report Abuse

You can question and fry the management kao kao during the AGM this year, ahhanbb 😂

Posted by Meowmeowbibi > 5 hours ago | Report Abuse

lol, oriental hits 0.97 from 0.44 on first day IPO, when is LHI going to above 0.90? LHI balik kampung sucks milk better.

Posted by ahhanbb > 4 hours ago | Report Abuse

ya Eggplant. We should question CEO for the Group’s Malaysia operations , his name also call ah Han. Lol...

Posted by ahhanbb > 4 hours ago | Report Abuse

Meowmeowbibi, LHI need Viagra to be like KOPI, niama, 100% increase from IPO price of 0.44. LHI sucks it own cock better...