LII HEN INDUSTRIES BHD

KLSE (MYR): LIIHEN (7089)

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Last Price

3.03

Today's Change

+0.03 (1.00%)

Day's Change

3.00 - 3.04

Trading Volume

44,300

Overview

Market Cap

545 Million

NOSH

180 Million

Avg Volume (4 weeks)

165,081

4 Weeks Range

2.86 - 3.16

4 Weeks Price Volatility (%)

56.67%

52 Weeks Range

2.70 - 3.42

52 Weeks Price Volatility (%)

45.83%

Previous Close

3.03

Open

3.00

Bid

3.02 x 5,600

Ask

3.03 x 300

Day's Range

3.00 - 3.04

Trading Volume

44,300

Financial Highlight

Latest Quarter | Ann. Date

31-Dec-2021 [#4] | 21-Feb-2022

Next QR | Est. Ann. Date

31-Mar-2022 | 27-May-2022

T4Q P/E | EY

14.12 | 7.08%

T4Q DY | Payout %

2.64% | 37.27%

T4Q NAPS | P/NAPS

2.45 | 1.24

T4Q NP Margin | ROE

5.39% | 8.76%

Market Buzz
Company Profile

Sector: CONSUMER PRODUCTS & SERVICES

Sector: CONSUMER PRODUCTS & SERVICES

Subsector: HOUSEHOLD GOODS

Subsector: HOUSEHOLD GOODS

Description:

Lii Hen Industries Bhd is engaged in the manufacturing and sale of furniture. Its products include bedroom sets, occasional products, utility products, sofa sets, buffet and hutch products, dining furniture and others. In addition, the company is also involved in Plantation and other segments. Plantation segment cultivates rubberwood trees, and Others segments include the firm's investment holding activities. Geographically business presence of the group can be seen across the Malaysia, USA and in other countries of which USA regions account for the majority of revenue.

Discussions
29 people like this. Showing 50 of 11,110 comments

Sardin

Davidkkw79, you should have sold it just after MCO 3.0 was announced. But if you have held it until now, it is better to continue to hold it because the business has returned to full swing since Sep 2021.

2021-11-29 22:34

Thirai Thiraviam

@Sardin - The drop in revenue and profit is quite drastic. We have to go all the way back to 2011 to see a similar performance from Liihen, when its stock was trading around RM1.00. I have been holding Liihen for a while now; sold a large portion of it when it neared RM4.00. But, it has been an awful year for Liihen, looks like.

2021-11-30 09:40

Sardin

@Thirai - Indeed 2021 is an awful year for Liihen because all factories lost production for 3 months (Jun, Jul, Aug) and some factories loss about a month production in Q1. 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.

2021-11-30 10:00

Thirai Thiraviam

@Sardin - I really hope you are right. With its rolling 4-quarter EPS at RM0.306, my current TP for the stock is RM2.44 @ PER of 8.

2021-11-30 10:45

Pasar_Pagi

The foundation of Lii Hen doesn't change. The bad result was caused by single event which stop its production.

2021-11-30 15:27

Sardin

@Thirai, the Q3 result is already out for a few days and the price doesn't go south. So I believe this is due to change of opinion of existing Liihen's shareholder where they are looking forward for the recovery of the earning which is yet to be reported in Q4 report rather than the damage which is already done and accounted for in Q3. I agree that the appropriate PE for this stock is around 8 but I think we should use forward PE instead of rolling 4 quarters in the past because we do not expect the same damage to be repeatable. If we are using forward PE, I think reasonable annual EPS should be RM 0.15 x 4 = RM 0.60. Target price should be RM 0.60 x 8 = RM 4.80. Buying at 80% discount the discounted target price should be around RM 3.80. Assuming 40% dividend payout, this should be able to support the price at RM 3.80 or higher.

2021-11-30 17:06

Sardin

This should be the trend and ignoring the short-term volatility this is an achievable target price with justifiable reward to buy at current price.

2021-11-30 17:09

Sardin

I think the risk of missing a good entry has become higher than the risk of loosing the opportunity to buy at lower prices over time because:
1) Things are getting better and guys running the business will buy more
2) When things are getting better insiders including management, suppliers, employees are receiving good news and they will buy more too
3) Good news will come out on the newspaper eventually and other retail investors will be interested to buy
This risk-reward curve will quickly skewed in 3 months time so the more waiting, the more expensive would be to invest.

2021-11-30 17:22

Thirai Thiraviam

I started buying into the stock when it was trading at RM1.x. It is certainly one of the better stocks in my portfolio. I particularly like its rather generous dividend policy. But I sold out (if not mistaken) in 2017, when the price got ahead of its valuation, but took a position again just after the COVID crash. Let's see.

2021-11-30 18:26

bullrun1985

Liihen keep dropping, why???

2021-12-02 15:20

NatsukoMishima

Furniture will be the next targeted by Andy Hall n cheaper price good quality from China ! Below rm 2.30 only consider buy or not !

2021-12-04 10:36

stockraider

Think lah!

Love malaysia mah!

What & Why move out leh ?

Just free up the control on foreign labors & let the companies employed whatever foreign & local labors they want mah!

Like that govt get tax revenue, local get quality appointment & the country economy can grow mah!

Everybody very happy mah!


Posted by treasurehunt > Dec 4, 2021 10:31 AM | Report Abuse

One word. If a manufacturer is unable to invest in automation then move out the factories to low labor costs countries lor. It’s so simple.

2021-12-04 10:37

Sardin

It is not so easy to move out. You got to look at other requirements. Otherwise Lii Hen would have first appeared somewhere in Africa by the name Great Afri Furniture etc.

2021-12-07 12:25

NatsukoMishima

Never touch any counter which is over 50% hired migrant labors because the rules have changed for counter like this , previously hired as many as foreigner would really benefited company but now it will only drag down the share price atleast 50% if targeted by western countries n need to bear for the highest ESG cost for foreiners ! Liihen share price is quite high now , buy only around rm 2.00 make safe !

2021-12-13 10:17

mananghunter

Is hard to pressure lii hen down as the company still solid and strong.

2021-12-13 10:19

Sardin

I believe quite a lot of inventories (perhaps RM 45 millions) are actually goods that are already landed at US but somehow not yet recognised as revenue or cost of goods sold due to the term of trading. I am not able to verify this at the present but hope someone to enlighten us.

2021-12-14 20:12

Sardin

And probably because of that our government is confident that our manufacturers are able to catch up by end of this year to achieve sales slightly better than last year.

2021-12-14 20:14

EatCoconutCanWin

Flooding n buy furniture . Gogo

2021-12-27 12:13

apple168

Andy Hall is coming to town…

2021-12-27 19:33

EatCoconutCanWin

GG

2021-12-30 22:11

IkNowEvErYthiNG

Post Flood theme play lah

POH HUAT, AHB, WOODLANDOR, VERSATILE, AEON, SERNKOU, LIIHEN

2021-12-31 11:46

investortrader88

Managed to top up some tickets at RM2.81.good luck guys

2022-01-19 17:21

Sardin

Number of containers shipped has been increasing sharply in the past 3 months.

2022-01-21 18:30

Sardin

If this trend continue there is a chance that goods to be shipped in 2022 may be touching the level of year 2020 or better.

2022-01-21 18:32

Patrick13

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.

This announcement is dated 27 January 2022.

2022-01-27 17:53

observatory

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.

2022-01-27 19:55

NatsukoMishima

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 !

2022-01-27 21:43

NatsukoMishima

Bye bye to liihen !

2022-01-27 21:43

gordonn

Why happen to liihen. Why sudden up so much

2022-01-28 10:48

Sardin

It is harmless with minimal cost especially when the earning is recovering. I think sales and profit in 2022 has a chance to outperform 2020, or achieving about the same.

2022-01-28 10:54

investortrader88

Ini kalilah ! :):):)

2022-01-28 16:56

jackfruit

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.

2022-01-28 17:47

Cipta

Why split to 3? Liihen wanna join the penny stocks?

2022-02-04 10:08

EatCoconutCanWin

furniture price hike due to inflation . good to invest. furniture demand pick up in 2022.

2022-02-11 08:34

4dking777

Why split to 3? Liihen wanna join the penny stocks?

_____________________________________________

Want to make some money. low price more trade.

2 months ago

gkent2000

SERNKOU, LIIHEN , SIGN, POHUAT

If glove got top 4, i guess this is the top 4 for furniture.

2 months ago

Sardin

Expecting 14 sen dividend annually plus 1 or 2 sen special dividend.

2 months ago

Sardin

Before this I was expecting 18 sen total dividend per year

2 months ago

gkent2000

SERNKOU, LIIHEN , SIGN, googogoog!!!!!!!

2 months ago

demdem1912

Sleeping counter.......

1 month ago

steven_c

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.

1 month ago

frankco

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.

1 month ago

Samuelgold

Liihen gogogo

3 weeks ago

cherry88

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.

3 weeks ago

steven_c

@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

3 weeks ago

Cakes Moon

With such high inflation & strengthening of the US$, buying Liihen is the safest!!!
Sold all Hengyuan & PetronM then buy in this furniture counter.

2 weeks ago

steven_c

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.

2 weeks ago

NatsukoMishima

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 !

1 week ago

steven_c

@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.

1 week ago

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