1st qtr eps 15 sens.If next 3 qtrs earn 15 sens (5 sens each qtr,just my own estimate) full eps next year would be at least 30 sens. My eps estimate for next year is very consevative,could surprise on the upside.With 25% payout next year's divvy would at least be 7.5 sens.Already this year's dividend payout is 100% more than last last year's 3 sen. All in all this is a good stock to invest in (for me at least !)
Latitud broke out from the round bottom should have an immediate TP of $1.63 (Refer to my earlier post). The Gap support is at $1.35/$1.40 and strong resistance is at $1.59 (Gap Resistance).
The United States remains the core market for the Group, accounted for approximately 92% of FY2013’s revenue and the remaining revenue contribution were from other markets. In line with our expansion plans, the Group plans to diversify into other export markets with high growth potential such as China, Russia, India and Indonesia.
In order to strengthen the Group production facilities, the Group plans to extend further its business scope upstream by leveraging on the area of material sourcing. With greater control over the material sourcing process, the Group can better manage the quality as well as the stability of supply of raw materials.
Research and development (“R&D”) is a cornerstone for the success of our business. The Group invests considerable resources into developing new, innovative and attractive designs which are market and customer driven. The R&D process is driven by teams of R&D employees geared towards producing a wider range of new, innovative and attractive design products to help the Group to better meet the increasing customers’ demand and expectation. Besides, we are also focused on achieving a more balanced product mix by increasing our production of ODM products to avoid over reliance on OEM products. Since last year, we have increased our ODM production ratio to 26% from 24% and will continue our future expansion to focus more on ODM production.
In order to lessen the impact of the implementation of the minimum monthly wage policy of RM900, the Group will continue to reduce the use of low-skilled labour and improve manufacturing processes by using more automated and advanced technology machinery. The Group also plans to further automate certain production processes and spray painting operations, with the ultimate goal of reducing labour.
As one of the leading manufacturer of household wooden furniture manufacturer in Malaysia and Vietnam, we will continue to develop new products to enhance the Group’s current product offering. Notwithstanding that, we will look out for and explore new investment and business opportunities.
Summary Latitude Tree Holdings Bhd (LATITUD:KLS) set a new 52-week high during Friday's trading session when it reached 1.58. Over this period, the share price is up 118.31%. 52-week range Today 0.65 Nov 30 2012 1.58 Nov 29 2013 Open 1.53 Day high 1.58 Day low 1.53 Bid 1.55 Offer 1.56 Previous close 1.48 Average volume 403.69k Shares outstanding 97.21m Free float 27.85m P/E (TTM) 6.18 Market cap 150.67m MYR EPS (TTM) 0.2507 MYR Annual div (TTM) 0.063 MYR Annual div yield (TTM) 4.06% Div ex-date Dec 18 2012 Div pay-date Jan 18 2013 Next div ex-date Dec 27 2013 Next div pay-date Jan 28 2014
As I wrote much earlier, furniture companies, to varying degree, produce good results in Q3 2013 calender year. Lattitude's ESP of 15sen a quarter is best of all. Stunning is a better word for it. Still, the steep appreciation of USD against RM in the latest quarter needs to be discounted when estimating future EPS.
Pluses: 1) Like Pohuat, it has operation in Vietnam as a geographical diversification. 2) Like most furniture companies, they are successful in passing on and managing upward pressure on cost.
Minuses: 1) Lattitude is still in net debt position but should soon turn into net cash position, like Liihen. 2) Dividend payout is relatively low, compared to Liihen.
I estimate 40sen EPS for FYE 2014 and a fair value of RM2.40 to RM3 for Lattitude, which is higher than my fair value for Liihen of Rm2.10 to Rm3 (based on liihen's estimated EPS of 30sen for next 5 years on average).
Posted by sense maker > Dec 1, 2013 09:53 PM | Report Abuse
Latitude is in net cash position already. One fewer minus.
But the stability of Vietnam's political and operating environment and relative strength of Dong, as opposed to RM, versus USD needs to be weighed.
My target price is unchanged for both Latitude and Liihen.
sense maker,great to have you posting on this thread.I understand that you are a finance director with a listed company. Hope you can continue to check on Latitud's future quarterly reports and post your views here.Appreciate it,thanks a lot.
I think not many people know that the well known investor COLD EYE aka FONG SILING is a top 30 shareholder of Latitude,ranked at no. 12.He holds 1,365,000 mln shares.
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....
ahbah
6,236 posts
Posted by ahbah > 2011-04-06 10:31 | Report Abuse
Latitude had produced a very good 1st half financial result of Rm11 million profit or 18 sen per share.