On behalf of the Board of Directors of Lii Hen Industries Bhd. ("LHIB" or the "Company"), Alliance Investment Bank Berhad wishes to announce that the Company proposes to undertake a bonus issue of 359,999,976 Bonus Shares on the basis of two (2) Bonus Shares for every one (1) existing LHIB Share held on the Entitlement Date.
Further details of the Proposed Bonus Issue are set out in the attachment enclosed.
Bonus issue often causes market excitement and short term price appreciation.
Shareholders will ask management for bonus issue during AGMs. Except selected blue chip companies such as Nestle, most companies who meet the conditions will comply with shareholders' request by citing reasons like "enhancing the trading liquidity and marketability of shares"; "shares made more affordable in order to appeal to a wider group of shareholders and investors"...
In a bonus issue almost everybody is happy - the shareholders, management and the i banks who earn fees from the exercises. This is despite everyone also knows it's about slicing the same cake into more pieces. And some costs would be incurred.
I wonder if Lii Hen shareholders in this forum support bonus issue?
If you do, does it also mean you look forward to opportunities to dispose at least some shares in the short term during the anticipated price run-up?
Because if you don't dispose, after the excitement is over the share price is likely to return to a level dictated by its fundamental and prevailing market conditions. A good recent example is Lii Hen's peer Homeritz which had a bonus issue exercise in late 2020.
But assuming current dampened market sentiment remains unchanged, and therefore market response is not overly enthusiastic, with share price just going up 10% to about RM3, will you sell?
I don't have a fixed view on bonus issue. I just would like to hear other shareholders' preferences.
20 years ago when heard about bonus issues every share holders felt excited but this is a different case now ! Diluted eps , stock price keeps dropping after ex date , no more high divy do u think investors still keen to buy this stock n the price will drop or stagnant !
My own view only , sell at high price before ex date , malaysia furniture future is not so encouraging !
By declaring bonus 2 for 1 show that Liihen is very confident for strong earning going forward. Coming quater earning will be strong plus good dividend. Revenue will surpass 1billion ringgit for financial year 2023.
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.
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.
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 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....