Interim dividend 6 sen is add on goodies on top of strengthen USD, which is current at 4.46. And with fed to expedite rate hike next year, USD will likely continue on strength.
FL plywood is majority export to US market which is currently on booming economic and with trump emphasis to focus on internal infra work, the demand for plywood will increasing forward.
Next Q4 result will be record forex advantage on strengthen USD and capitalize on inventory gain delay to delay in Q3 shipment.
Portfolio will keep all stake for 6 sen dividend income to be ex super fast by month end, then wait for much stronger incoming Q4
FLbhd has announced interim dividend 6 cents. It is far below the expectation of 10 cents to general investors. With the current share price 1.6, dividend yield is merely 3.7% or 30% payout from the net profit. The company is affordable to pay a dividend 10 cents consistently for another 7 years but.... Low dividend yield, No growth in revenue and EPS in near future couple with expecting PER 10x. Flbhd has nothing to shout now other than cash in its piggy bank.
It stated as " Interim s/t of 6 cents " and no mention about the word " Final " in it. Then there is possibility of another consolation div. be4 financial year end. Fair or not is up to individuals.
Last year buy 2.4 ++ get 10 cents and the entry price current at 1.5++ get 6 cents, for me its fair enough if you base on % div. payout ratio.
D boss has been accumulating d company shares, that means he has confident d company will have higher earnings next quarters. Just hold till January n see how d price, look bullish at present. If have 50% capital gains should be okay for CNY ang-pow! This is a above average company cause its ROIC is double digits for more than 7 years n suitable for long-term investment. Gd luck!
FL management is very prudent in handling dividend payout, peg dividend to its annual earning. If company record higher profit, opt higher dividend, if company record lower profit, opt for lower dividend, but generally to be based on 40% payout of annual EPS.
With USD continue strengthen, FL forward earning will be much higher which in turn translate into higher dividend payout next year.
Thus, current 6 sen interim dividend can be just considered 'extra income' for holding FL stake now, share price will auto adjust after ex- date in 2 week time, share price will become even more attractive.
Definitely next quarter will be better lah due to delay shipments in last quarter. HIHI 6 cents div ok lah and with further usd strengthen as a bonus mah.
USD:RM were around 4.00 in Q2 and Q3. As all sales are in USD, increase in USD by 10% in Q4 will bring in additional 10% revenue in Ringgit. There is no additional cost to this additional revenue. In other words, this is PURE profit !
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....
stockraider
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Posted by stockraider > 2016-12-15 11:27 | Report Abuse
Flb up in a down overall market indicate bullish trend mah...!!