Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily, on november 24, 2015.

 

Lii Hen Industries Bhd (-ve)

FURNITURE-maker Lii Hen (Fundamental: 2.5/3, Valuation: 2.1/3) gained 3.5% in active trade to close at a one-year high of RM2.97 yesterday. This came after the company announced a strong set of quarterly results and an interim dividend.

For 3Q2015, net profit surged 168.4% y-y to RM15.5 million on the back of a 41.8% rise in revenue to RM144.2 million. The improved performance was due to a 15% sales growth in bedding products and the strengthening US dollar. The latter works in Lii Hen’s favour as 91.6% of its revenue in 9M2015 came from export markets.

Lii Hen also declared a third interim dividend of 1.5 sen per share, which will go “ex” on Dec 8. This brings total dividends for FY2015 to 5.8 sen per share (after adjusting for a bonus issue and a share split).

Note that Lii Hen appears to have expansion plans as RM5 million has been allocated for the purchase of a factory building.

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