Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Sept 19): Lii Hen Industries Bhd rose 4.23% in thin trade this morning after Hong Leong IB Research initiated coverage on the stock with a “Buy” rating at RM3.31 and target price of RM5.04 based on 11x FY18 core EPS of 45.9 sen.

At 9.07am, Lii Hen rose 14 sen to RM3.45 with 68,700 shares done.

In a note today, the research house said that riding on a resilient global furniture demand and favourable exchange rate, Lii Hen's core net profit grew at a 5- year CAGR of 22.6%.

It said Lii Hen has a strong track record in terms of profitability, ROE and dividend payout as compared to its closest peers.

“Lii Hen diversified into manufacture and design of upholstery sofa sets which are complementary to existing product range without incurring significant marketing expenses,

“Judging from 2005 Hurricane Katrina trend, reconstruction activities in the US from hurricane damages may help boost Lii Hen’s furniture exports as the group ships 77% of its total exports to the US.

“Backed by strong balance sheet, Lii Hen is currently sitting on net cash per share of 53.8 sen. Expect a sustainable decent dividend of 26 sen/share (dividend yield of c.7.9%),” it said.

      Print
      Text Size
      Share