 |
| Latitud closed at RM3.33 on 29th August 2014 Before Merdeka Day |
SUMMARY OF KEY
FINANCIAL INFORMATION
30/06/2014 |
INDIVIDUAL PERIOD
|
CUMULATIVE PERIOD
|
||||||
CURRENT YEAR QUARTER
|
PRECEDING YEAR
CORRESPONDING QUARTER |
CURRENT YEAR TO DATE
|
PRECEDING YEAR
CORRESPONDING PERIOD |
||||
30/06/2014
|
30/06/2013
|
30/06/2014
|
30/06/2013
|
||||
$$'000
|
$$'000
|
$$'000
|
$$'000
|
||||
1
|
Revenue
|
142,759
|
124,417
|
651,025
|
493,687
|
||
2
|
Profit/(loss) before tax
|
10,283
|
9,352
|
71,867
|
35,658
|
||
3
|
Profit/(loss) for the period
|
8,631
|
8,230
|
64,333
|
32,046
|
||
4
|
Profit/(loss) attributable to
ordinary equity holders of the parent
|
8,681
|
5,949
|
55,008
|
24,366
|
||
5
|
Basic earnings/(loss) per share
(Subunit)
|
8.93
|
6.12
|
56.59
|
25.07
|
||
6
|
Proposed/Declared dividend per
share (Subunit)
|
0.00
|
0.00
|
0.00
|
0.00
|
||
AS AT END OF CURRENT QUARTER
|
AS AT PRECEDING FINANCIAL YEAR END
|
||||||
7
|
Net assets per share attributable
to ordinary equity holders of the parent ($$)
|
3.1700
|
2.3900
|
||||
SUMMARY OF KEY
FINANCIAL INFORMATION
31/03/2014 |
|||||||
INDIVIDUAL PERIOD
|
CUMULATIVE PERIOD
|
||||
CURRENT YEAR QUARTER
|
PRECEDING YEAR
CORRESPONDING QUARTER |
CURRENT YEAR TO DATE
|
PRECEDING YEAR
CORRESPONDING PERIOD |
||
31/03/2014
|
31/03/2013
|
31/03/2014
|
31/03/2013
|
||
$$'000
|
$$'000
|
$$'000
|
$$'000
|
||
1
|
Revenue
|
146,773
|
107,218
|
508,266
|
369,270
|
2
|
Profit/(loss) before tax
|
14,809
|
5,822
|
61,584
|
26,306
|
3
|
Profit/(loss) for the period
|
13,573
|
5,769
|
55,702
|
23,816
|
4
|
Profit/(loss) attributable to
ordinary equity holders of the parent
|
12,752
|
4,304
|
46,327
|
18,417
|
5
|
Basic earnings/(loss) per share
(Subunit)
|
13.12
|
4.43
|
47.66
|
18.95
|
6
|
Proposed/Declared dividend per
share (Subunit)
|
0.00
|
0.00
|
0.00
|
0.00
|
AS AT END OF CURRENT QUARTER
|
AS AT PRECEDING FINANCIAL YEAR END
|
||||
7
|
Net assets per share attributable
to ordinary equity holders of the parent ($$)
|
3.0500
|
2.3900
|
||
Source: Bursa Malaysia
Latitud Q4 FY14 result was just released on
28th August 2014. Latitude's FY14Q4
revenue (RM142.7m) has dropped 2.7% if compared to FY14Q3 revenue (RM146.8m)
while the EPS for FY14Q4 (8.93cents) (which is below my expectation of at least
10 cents) has dropped 32% if compared to EPS for FY14Q3 (13.12 cents).The main
reason for this drop is due to the loss of one week productions in its Vietnam
factories as a consequence of the recent Vietnam riot, together with delay in
goods delivery. However, both revenues and net profit if we compare qoq
and yoy, it improves by 14.7% and 45.9% respectively. Besides, its NTA has
improved by 3.9% from RM3.05 to now RM3.17. So any price below RM3.17 is still
a good buy for time being.
The EPS
for whole FY14 is 56.6 cents, with closing price on 29th August 2014
RM3.33, Latitude is trading at a PE of 5.88x.If we give Latitude of
conservative PE of at least 7, then its target price should be RM3.96 and above.
On 29th
August 2014 (after the result day), Latitud has gapped down from previous
closing price on 28th August 2014 (RM3.60) to RM3.46 and eventually
closed at RM3.33 with a high trading volume of 16.9k.The gap down was mainly to
the poorer than expected quarter result due to recent Vietnam riot and also ‘recent
excessive surge or profit taking before result out’as predicted in my previous
post:
As long as Latitud is above her long term
uptrend support line MA200, her bullish trend still remain intact.
In addition to this, I will expect there is a
slight pull back or correction in this 1 to 2 months time before the next wave
of rally.There will not be any big move for Latitud unless there is a sudden
breaking news/announcements.
The main catalysts/themes for Latitud next
surges:
1) Continuos and Increasing demand of furniture
from US as a result of US economic recovery, home sales and increasing consumer
spending sentiment, strengthening of US dollars which facilitates the export of
furniture and etc.
2) Possible proposed of 1:2 bonus issues due to
its abundant reserves as a reward for the shareholders
3) Special dividend or higher final dividend pay
out ratio?
Historically, Latitude will
only pay dividend once a year during December. As according to FY13, the company
paid out 25% from its net profit as final dividend to reward its shareholders.
Conservatively, if I assume that its company still maintains its current
dividend pay out ratio of 25% this means
that it might pay 14.15 cents (56.6 cents x 25%) for FY14. If we calculate it
in dividend yield, that will be 4.25% yield based on its closing price at RM3.33
on 29th August 2014. In view of its abundant capital reserves and
increasing net profit , the final dividend of >25% pay out or special dividend is very
likely.
4) Full contributions from Vietnam
operations or factories will only be seen in FY15.
The possible risks to be weighed:
1) Latitude
is a cyclical stock-which depends very much on US
economy. A hiccup in US
economy will have a great impact on
its share price.
2) Vietnam
issues
The
purpose of this blog is to share knowledge, news and personal opinion on
investment, economy, stock market etc. There is no guarantee that all the
information in this blog is accurate and up-to-date. Invest at your own risk! Happy Merdeka Day in advance!TQ.
