2015年12月13日星期日

7089 Liihen


Company Review

Personal Comment
  • Profit margin of Liihen is increasing through the year.
  • Latest Q3''2-15 quarter report show there are trade positive between receivable and payable. This may a good image to show their effort to pay off their creditor.
  • Liihen is holding RM 0.56 cash per shares and RM 0.17 borrowing per shares. Net cash positive show company is healthy cash flow condition.
  • Q3''2015 which consists of 9 months report get marvelous result with ROE 17.89%. This result reveals the management using the fund effectively and efficiencly.
  • Historical DY recorded result above 6%; Liihen is a good investment with extra capital gain if compared with REITs.
  • Liihen's business will enhanced and grow at powerful USD dollar. This statement can found from report:" The positive market sentiment in US and the strengthening of USD dollar against RM will continue to enhance the Group’s operation and earnings."


  • From the USD/MYR graph, we can clearly see there are present of bullish trend along the year 2015.
  • Lowest and highest USD/MYR is 3.4622 and 4.4580 respectively. There is a gap of USD/MYR 1.0000 or increase of 28.76% due to strengthening US dollar against RM malaysia.
  • The most interesting case is the price of Liihen rise from RM 2.75 to RM 7.05 with period 10 months; this is the period of powerful US dollar too.
  • On the other hand, capex of Liihen normally maintained approximately RM 10 million so result attractive free cash flow and lastly the DCF model get intrinsic value of Liihen worth RM 6.04.
  • For the accounting based earning valuation model which seek shareholder equity as heart and get intrinsic value of Liihen worth RM 3.56.
  • With the concept of market value, the next resistance of Liihen may RM 2.77 which will amount to RM 500 million market capitalization.

Additional Information
  • Liihen mentioned company has a moderate seasonality which sales generally lower in the head of the year due to festival period as well as summer holiday.
  • 6 countries direct related to Liihen business, which are America, Asia, Malaysia, Africa, Australia and Europe.
  • Clearing and stacking work were completed in end of Feb 2015 and then 750 acres were planted.
  • Liihen plan to diversify its business by enter plantation industry but news recently showed the application of RM 22.5 million term loan to Malaysian Timber Industry Board was cancelled.
  • Latest Q3''2015 report show the sales segment as below:




本文只供参考。共勉之。

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