Posted by observatory > 2021-10-30 15:15 | Report Abuse

Thanks for the good sharing.

I've read about the alleged insider trading and the commotion during one AGM many years ago. It was also once a KYY stock meaning share price going through roller coaster ride.

However I'm not too concerned about corporate governance. Recent year records show that the management strives a good balance between dividend distribution and above cost of capital growth with retained earnings.

I agree furniture exporters to the US has benefited immensely from trade diversion away from China. Besides the production cost in Vietnam has been rising over the years so it hit competitors including Chinese producers there.

But the reliance on foreign workers in Malaysia could be the Achilles' heel
for this industry, especially for Lii Hen which exports 90% to the US. Automation will also be difficult especially for the final assembly process. One never know when will US find faults in the labor practice as already experienced by companies in glove (WRP, TG, Supermax), plantation (Sime Plantation, FGV) and EMS (ATA IMS).

I see that you've been writing on other YOCB and Success. Please keep up the good analysis and sharing!