Posted by SC > 2016-02-25 10:31 | Report Abuse

pputeh,
the cash can be used to acquire/invest into good related businesses. the group is waiting to acquire/venture into good upstream businesses, sofa and mattress and/or its suppliers such as coating materials, packaging materials and hardware.
if distributed too much of its cash to its shareholders, the group may not be able to compete/sustain its business as the group has to compete with big boys from China setting up furniture factories in Vietnam and buying up upstream wood processing factories in Malaysia & Indonesia.
BAT, Dutch Lady & Nestle are different as they need to repatriate back their profits to their major shareholder's holdings company outside Malaysia. They are here to make money from our consumers for their home country.

Posted by JT Yeo > 2016-02-25 10:36 | Report Abuse

yea you are right, hoarding large amount of cash is always a very subjective issue. Like for example Apple inc. Some ppl will think it is better to distribute them to shareholder, while mgt might think otherwise they can use it for rainy days, capex, acquisition or working capital etc.

Yea i guess one thing that is common for Bat, GAB or Dlady Nestle is that they are matured companies, their products have already blanketed Malaysia, not much opportunity for them to expand or reinvest, and plus they business are considerably stable, thus they think it is prudent to distribute profit to shareholders. In contrast Latitude might think they have plenty room for growth so they decide to keep all the cash.

2nd thing is their business models are very asset light. Unlike airline industry where you have to spend a lot on aircraft maintenance, purchase, workers etc producing more beers or cigarette are very asset light, they don't need to reinvest a lot of profits back into the business, which is another reason why they can afford to distribute high % of their profit in dividend. In contrast Latitude would face issue from sourcing quality wood, upgrade machinery, workers with good craftsmanship, design team etc, therefore they would have to spend more % of profit for reinvestment.

Posted by lbkeat > 2016-02-25 10:45 | Report Abuse

latitud now is running by younger generation mr.lin c h. which is more ambitious compare last time and their business now presence in 3 countries which is malaysia,thailand and veitnam. i consider this counter is growth stock and don't look at their dividend and bonus. i believe latitud will become leader in the industry not only in malaysia but in asia after knowing their future plan

Posted by pputeh > 2016-02-25 12:48 | Report Abuse

A big Thank You to all 3 of you, SC, JTYeo and Ibkeat for you detailed explanation painstaking put across. Lets hope the money will be used for expansion for which I am also happy. However expanding aggressively has it pitfalls too. Hevea, Lii Hean, Poh Huat, & Hormetiz are smaller companies but they do reward their shareholders within their capabilities. Let me tell you that I have been patiently holding on to Latitude since June 2014 & would just suggest/like/hope they are more generous with their div returns. Thank you once again all 3 of you and have a great day ahead

Posted by Hulk > 2016-02-25 15:11 | Report Abuse

no dividend = no good....share holder cannot enjoy the profit.

Posted by gwansoo > 2016-02-25 15:14 | Report Abuse

Well, just hold for another one year. Maybe they will change. Haha

Posted by leslieroycarter > 2016-02-25 16:41 | Report Abuse

volume of trade is only one third of yesterday...so the selling n bleeding look somewhat stopped.

Posted by JT Yeo > 2016-02-25 16:44 | Report Abuse

final thing, if you dont mind the detail, is ultimately you have to look back at their ROE. As in if they use those money for reinvest and expand, how much are those return on investment? aka the ROE. Latitude doesn't have much borrowing (i think) so all are equity financing, then you are looking at 9-10% cost. Debt financing is lower at 6-8%, depends on the rate banks lend to you.

So if Latitude cannot reinvest those money and generate a return above 10% in long run, that means they are destroying the business.

Posted by dalpinia > 2016-02-25 18:17 | Report Abuse

Tienwah is another good div pay counter and performance damn good.....got 50% to growth in next 6-8 months

Posted by dalpinia > 2016-02-25 18:18 | Report Abuse

http://klse.i3investor.com/blogs/TIENWAH/91852.jsp

Posted by Alex Chan > 2016-02-25 23:40 | Report Abuse

Who says no debt? Do your check before commenting. Look at XDL, wonderful profits, lousy dividends. Where is it now?
Again where and what's happening to the cash

Posted by lbkeat > 2016-02-26 00:06 | Report Abuse

some highlights from latest financial results
sales drop about 10% in term of usd revenue for six month periods but gross margin increase about 27.6% due 2 improve productivity, high margin products and venture 2 upstream activities effect bear fruits. now latitud enjoying 20% gross margin(most significant facts excluding exceptional items) compare 2 15.5% gross margin last year. more importantly another 10m for plant and machinery expansion from latest quarter. in term of roe mention by jt yeo, i strongly believe with my facts will easily surpass 20% by next few quarters, let us wait and see

Posted by leslieroycarter > 2016-02-26 08:52 | Report Abuse

if u think no good , just cut loss shall be the answer...but i think keeping for a year can bear better results . It may even breaches RM 8 or 9 . who knows?

Posted by Jeff Lee > 2016-02-26 09:11 | Report Abuse

soon ppl will realise latitude is still a cheap and bargain buy!

Posted by SC > 2016-02-26 09:28 | Report Abuse

ibkeat,
the increase in gross margin was mainly due to increase in forex by 29% from average rates of 3.25 to 4.20
Please don't try to con / confuse people here. contribution by improved productivity, high margin products and upstream activities were minimal.

Posted by lbkeat > 2016-02-26 11:17 | Report Abuse

what i said is based on facts on latest financial results.

Posted by Jeff Lee > 2016-02-26 13:52 | Report Abuse

friends, no need to keep argue, looking over the market. What stocks you think can buy?

Malaysian ringgit you think so easy can climb against USD? With so many bad news from our country and high household debt, high government debt, corruption, wastage of taxpayers money.

After so much story, USD vs MYR still 4.20.

Posted by leslieroycarter > 2016-02-26 14:01 | Report Abuse

good for Latitude since it is one of the export counter ; thus receiving more in ringgit terms!
No hope for ringgit to breach RM 4.00 at the moment or may be until 2018 , when the election is over...

Posted by SC > 2016-02-26 14:37 | Report Abuse

Ibkeat,
but you deliberately omit the main factor of the increase in GP margin which was the Forex factor. Instead of mentioning of Forex factor, you deliberately highlight those minor factors with bad intention to misguide/misled the people over here.

Posted by leslieroycarter > 2016-02-26 15:13 | Report Abuse

please sell below 6 or 5 , shall be a good bargain.....

Posted by lbkeat > 2016-02-26 18:22 | Report Abuse

no, i don't think forex factor alone can contribute 2 increase gross profit of the company. but i believe forex factors will affect the net profit of the company. anybody an accountant here can explain more about this topic

Posted by shareinvestment7 > 2016-02-26 20:04 | Report Abuse

Below 5.80, may be I will consider to buy back..

Posted by lbkeat > 2016-02-27 00:16 | Report Abuse

sc, from the latest q results, we can see almost 75%(last year more than 80%) revenue of the company is from their veitnam operations which is dominated in doung. so the group sales AND COST OF SALES are not dominated in riggit. so the forex factor like from 3.25 to 4.20 will not have severe impact 2 the com gross profit margin but have severe impact 2 the com net profit margin.(forex factor not only affect com revenue but fair vaLUE gain or or loss of the com assets and liabilities)appear in other income and other expenses after gp but before net profit of the com.

Posted by pputeh > 2016-02-27 13:33 | Report Abuse

You guys can go on talking about forex factor etc. The fact is the counter has fallen from rm8+ to rm6+ now. So many have been burn.......t and will take a long time to build confidence in the counter esp as this counter has peanuts div return

Posted by SC > 2016-02-28 16:23 | Report Abuse

Ibkeat,
forex gains in other income or forex losses in other operating expenses will from assets and liabilities in foreign currencies such as investment in vietnam, cash, receivables, payables and etc.
all these are forex gain/loss from balance sheet items.

Forex gain/loss from Revenue and cost of sales are from P/L(income statements) were directly converted into the revenue using average forex rates and therefore are included and will have impact on the GP margin. for example your USD1mil revenue in 1HalfFY2015 is reported as RM3.25mil and in 1half FY2016 will be RM4.2mil whereas yr expenses were in Vietnam Doung.
the salary expenses of VNDoung2.000bil=USD100,000=RM325,000 in 1halfFY2015 and the same salary expenses of VNDoung2billion will be USD90,909(as VND is also weakened against USD from 20,000 to 22,000 per USD) = RM381,818
Therefore, resulted increase in GP margin by the strengthening of USD against RM and VNDoung.

Results of Vietnam operations were converted at average rate of 4.20 where previous year were converted at 3.25.

The mgt specifically mentioned about Forex factors in the announcement but you deliberately omitted the forex factors and you purposely highlighting the minor factors.

Posted by SC > 2016-02-28 16:32 | Report Abuse

pputeh,
if without the forex factors, the results of Q2 had decreased.
That means, the performance of LTHB had dropped and therefore, the share price has fallen from RM8 to RM6+
The fall in share price was in line with the drop in performance like the decrease in revenue(in term of USD) and GPmargin (if we remove the forex factors).

Posted by SC > 2016-02-28 16:37 | Report Abuse

however, some people here trying to con/cheat or twisted the facts by telling the story that the Q2's results were better.
So, please be careful.

Posted by loganmts > 2016-02-28 17:44 | Report Abuse

Just Talk Yeo has omniscience power!knowledge on everything by book and now internet!

Posted by Lukesharewalker > 2016-02-28 19:40 | Report Abuse

High chances to drop below 6

Posted by lbkeat > 2016-02-28 22:21 | Report Abuse

ringgit from 3.25 to 4.2 depreciated 30%
vietnam dong from 21500 to 22381 as at 2 day how many percent depreciated less than 5 %. so, compare 2 lihen, hevea shh which all operations are in malaysia which one is affected most. so, 5 %depreciation in dong will have less impact 2 company gp compare 2 other factors i have stated before. this is my view d facts.

Posted by SC > 2016-02-29 09:27 | Report Abuse

Ibkeat,
How can you said that the depreciation of RM by 30% had no major impact on Latitud even though over 90% of their sales were in USD, raw materials of its Vietnam factories were imported from Malaysia in RM and wages & most overhead expenses were paid in VNDoung.

The facts are the poorer results/ the drop sales/ weaker performance of latitud in 1half FY2016 compared to FY2015 1half were camouflaged by the strengthening of USD by 30%.

You deliberately trying to misled people by claiming that 1Half FY2016 are better and purposely not explaining that it was due to Forex factor.

Posted by lbkeat > 2016-02-29 10:12 | Report Abuse

as i said before and in the qr, sales in term of usd drop 10% but in term of gp, there is an improvement.forex factor is an external factor that hardly control by management. what i try 2 mention here we should look at the company effort 2 increase productivity and effiency.

Posted by pputeh > 2016-02-29 13:25 | Report Abuse

SC much obliged & thanks for going through the forest and pointing out the 'fir' trees with its 'needles'. Much as some here are just walking through the forest and trying to lead others on & on. Have a good afternoon. thanks again

Posted by pputeh > 2016-02-29 13:28 | Report Abuse

SC thanks for yr explanation. Much obliged

Posted by leslieroycarter > 2016-02-29 16:43 | Report Abuse

co is making money also suffered losses in confidence , so how to invest now?

Tuesday, 23 Feb 2016

6:52PM LATITUD TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)
5:23PM LATITUD 1H net profit 54.839 million (increased 23.80%)


Thursday, 26 Nov 2015

5:09PM LATITUD 1Q net profit 28.264 million (increased 68.30%)

Posted by leslieroycarter > 2016-02-29 18:23 | Report Abuse

Just banking on the strengthening of usd n the anticipated depreciation of RM.....in the first half of the year.

Posted by SC > 2016-02-29 18:51 | Report Abuse

The drop in the share price of latitude is because KYY and gangs were selling in large qty.
They are selling due to poorer performance and lower revenue registered in USD term (drop in sales) even though latitud reported an increase in EPS(due to weakening of RM).

Posted by stockmanmy > 2016-02-29 18:59 | Report Abuse

Lat results quite good

Posted by lbkeat > 2016-03-01 00:41 | Report Abuse

sc, ur sentences
They are selling due to poorer performance and lower revenue registered in USD term (drop in sales) even though latitud reported an increase in EPS(due to weakening of RM).
29/02/2016 18:51
ok by theory weakening of rm should be increase in sales and profit(eps) right. but now the case is sales drop but gross profit increase so much.
so there is a conflict in ur statements.
my england r not good, i'm not a master/phd holder or an accountant but i have logic sense in my mind. sorry if my words offence u.

Posted by SC > 2016-03-01 09:28 | Report Abuse

Ibkeat,

you are very confused..
Sales in term of USD had dropped. The weakening of RM camouflaged it.Therefore the reported results in RM registered an increase in sales.

Under such company, the increase in EPS usually caused by forex gains and also those expenses such as material, wages and overhead paid in local currencies VNDound or RM.

If sales in term of USD dropped by 5% and RM weakened by 30%,
The reported sales in term of RM will show an increase of about 23.5%

If most expenses are in local currencies, this will resulted gross profit to increase substantially.

hopes you can see it and understand now.

At a glance, most people not able to see it, but there are many who can see it, such as KYY.

Posted by lbkeat > 2016-03-01 15:14 | Report Abuse

aiyaya, hope somebody else in 13 forum can understand what i mean. i stop here, anyway thanks sc for ur advice.
i still have faith in latitud can become market leader in furniture sec in klse.

Posted by goreng_kaki > 2016-03-01 15:38 | Report Abuse

Ah koon dispose......run

Posted by Alex Lim Jun Xiong > 2016-03-01 16:06 | Report Abuse

Better buy CEPCO lah...

Posted by leekh5555 > 2016-03-02 12:26 | Report Abuse

the price now very attractive now..but scare of big shark.

Posted by Kungsing Ting > 2016-03-02 13:36 | Report Abuse

Still too early to buy in. Wont talk so much on it but will monitor closely until it reach 5.xx

Posted by Lukesharewalker > 2016-03-02 15:15 | Report Abuse

5.90 next week

Posted by Sulcata > 2016-03-02 15:36 | Report Abuse

why keep dropping non stop

Posted by Lukesharewalker > 2016-03-02 16:08 | Report Abuse

Oops. I was wrong. 5.90 Tomorrow

Posted by shareinvestment7 > 2016-03-02 16:10 | Report Abuse

Wow.. Latitude @ 6.00 now.

Posted by leekh5555 > 2016-03-02 16:17 | Report Abuse

support 588 next 560.