Entitlement subject Bonus Issue Entitlement description LII HEN INDUSTRIES BHD ("LHIB" OR "COMPANY")
BONUS ISSUE OF 359,999,976 NEW ORDINARY SHARES OF LHIB ("LHIB SHARES" OR "SHARES") ("BONUS SHARES") ON THE BASIS OF TWO (2) BONUS SHARES FOR EVERY ONE (1) EXISTING LHIB SHARE HELD AS AT 5.00 P.M. ON 1 JULY 2022 ("ENTITLEMENT DATE")
WILMINGTON, N.C. — Rising inventories, orders placed months ago still in the pipeline softening demand are confronting furniture retailers with fresh challenges in the pandemic’s wake.
With so much product on hand and on the way the industry’s long overdue price increases could be at risk due to the potential for discounting to move goods. That’s particularly worrying since those price hikes were largely tied to increases in raw materials and transportation costs. With declining unit sales, potential discounting poses a particular threat to margins.
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Dont hesitate just sell off all bonus share to take profits before it drop to 60 sens ! Dont be top glove 2.0 ! During recessions and gloomy economic forcast furniture sector will be the worst impacted !
This looks like a good punt, as part of a diversified portfolio for the longer term, patient dividend investor. Valuation is undemanding near 80 sen. Net cash. Good dividend yield, ranging 5%-6% or more potentially at this price and probably good over next 5-10 years plus possible price doubling over this period.
I was told from a Muar people saying that the company will "stop" for 3 months till after CNY oh...(However, i don't think so, but hope it is a rumours)
A complete operation halt for three months will be worse than Covid lockdown. If the news is genuine, which I doubt so, the management would have to make annoucement in Bursa as such decision will have material impact on the share price. However no such annoucement can be found.
Nevertheless it's quite likely that furniture demand and therefore production have slowed considerably in recent months. I shared the news in Jun that US furniture retailers were facing serious inventory problems. It's likely that customer orders are drying up now. But such info should have been reflected in the current share price. The share price has declined by a quarter since Jun.
The wood manufacturing sector's prospects appear to be dimming even with the easing in elevated raw material costs and supply chain issues, as the industry is facing yet another obstacle — slowing furniture demand.
@fortunefire, actually, LIIHEN can afford to pay higher dividend. In the past, it has been very conservative, paying only 40% earnings or less. However, over the past 3.5 years, the payout ratio is steadily rising - the question is - will this become a new trend? 2020 - DPS 4.7 sen / EPS 14.0 sen = 33% payout 2021 - 2.7 sen / 7.2 sen = 37% payout 2022 - 6.2 sen / 13.9 sen = 45% payout TTM 2023 - 7.1 sen / 12.2 sen = 58% payout.
With Net Cash of 37 sen, and trading at 87.5 sen, the business is available for sale for only 50 sen. It's long term EPS is 12 sen, i.e. this wonderful business is only selling for a P/E of ~ 4 times.
It's dividend yield is nice for TTM 2023 = 7.1 sen / 87.5 sen = 7.0%. That must beat EPF nicely at this depressed price.
If the Company continues to share its profits with shareholders (e.g. a payout ratio of 80% EPS should be very sustainable given the huge Net Cash position, even to cover very bad lean years), even without any Special Dividends, it's DY will be higher than 7.0% and this stock is well overdue for a re-rating up.
Personally, lower prices is sufficient reason for me to accumulate.
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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....
jack daniel
166 posts
Posted by jack daniel > 2022-06-15 07:34 | Report Abuse
just top up 70lot on monday...