US impose 25% on steel product and 10% on aluminum product have great impact on tongherr, as it have about quarter of revenue derive from export to US.
Tongher is not affected by this new US tariff as most of Tongher's export to US is through its Thailand subsidiary and US has import duty exemption for stainless steel hex screws and bolts manufactured and imported from Thailand.
For FY17, Tongher declared a total of 36 cents per share dividend (18 cents interim paid and another 18 cents announced on Feb 26, 2018). With current price at RM3.57, this is equivalent to whopping 10% of yield! So down side is limited. Regarding Q4 poor result due to stronger RM, with our ballooning federal debts, do you think the RM strengthening will continue after GE? As long as business fundamental is still growing strong, my take is to accumulate on this temporary weakness.
Major shareholders and Directors are taking advantage of Mr/Ms Market's mood swing. Management should also initiate share buyback now and consider distribute share dividend from treasury share in future.
daughter buy,mother buy,father buy, company buy from 3.8 to latest 3.2........ 20% slide.who is selling? company buying own shares.why dont invest in future potential business instead.company has lots of spare cash? share prices started moving up 1.2 years ago? from 2rgt? more worry abt share prices than future prospective business,funny thoughts? good luck to all followers.
This is called been opportunist while taking advantage of market mood swing to best leverage on company current asset. From management's proven prudence practices, doesn't seems like they are chasing share prices in the expense of business performance. Not all company has the luxury to do this when the opportunity presents itself. Better shareholder ROI then putting them in short term money market or bank deposits. Make business sense.
at RM2.77 (last Friday's closing), Tongher is giving twice dividend worth about RM0.36 per year (June RM0.18 - announced, Dec RM0.18 - forecast). If one put RM277 in Tongher - after 1 year dividend is RM36 or about 13%, compared to RM277 in FD will return about RM11 (assuming 4% interest p.a). Will Mr/Ms Market willing to trade the share lower ? Maybe, but that will make the dividend yield exceeding >13%. I am not complaining :)
*Though share price will get adjusted after expiry of dividend entitlement date, but it will revert back to intrinsic value over times.
well.... do you think the board wants to face-off with angry shareholders in upcoming AGM for doing nothing about their undervalue share price? In addition, they better SBB before AGM else will get questions again what's the point of renewing SBB mandate year-in-year-out but not exercising while the cash is idling.
The inventories sitting in Tongher book has much higher value now compared to 31 Dec 2017. The Management increased its inventories from 2016's RM228 mil to 2017's RM290 mil. Very smart move. The additional RM60 mil can rake in few percentage more of profit margin.
Calvintaneng, Dr. Neoh Soon Kean has about 240,000 shares in this steel-product counter. Take a look at the balance sheet of Tong Herr, you'll probably like it. <<<<
@calvintaneng, that's incorrect. Based on recent trend, Tongher pays dividends twice a year. For FY ending 31 Dec 2017, total dividend declared was RM0.36 instead of RM0.18
Did you notice, Tongher just reported highest quarterly revenue in their listing history ? Revenue breaks through RM200Mil in Q1FY18. Impressive!
In addition, the board also expressed optimism that the new factory is on time to start operation in Q1FY19, which upon in full production can expand up to 30% of current capacity.
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....
hng33
20,510 posts
Posted by hng33 > 2018-03-02 11:09 | Report Abuse
sold off balance tongherr at 3.59-3.60, locked all contra loss, free up all balance capital, swap to buyback more annjoo at 3.58