Author: ValueGrowthInvestor | Publish date: Tue, 7 Jun 2016, 02:23 PM
Many may not know this but Warren Buffett's Berkshire Hathway actually has sizable investments in furniture companies which generate lucrative cash flow to fuel many of its other investments. This is because the low profile furniture business which is highly tied to the US economy does not receive as much publicity as the railroads, energy, insurance and consumer businesses that have over the years been headline favorites for media outlets.
If its good enough for Warren Buffett, it should be good enough for yousu! But which one should we choose among the many listed on Bursa?
My pick is SHH Resources, a very under the radar company with close to no coverage and attention given by the media and investors. Throughout my post, I will be comparing SHH to Liihen who engages in similar business. Liihen's share price has increased by 22% ytd while SHH has decreased 16% which is nonsensical! Let me explain why:
1) Earnings growth. The company saw its earnings grow more than 300% in 9M2016 and more than double in the latest quater. The good growth in earnings is due to a stronger USD (which remains above 4), higher orders from its US customer Ashley Furniture which is opening 100 new stores in 2016 alone and better profit margins from automation and better product mix. Meanwhile, Liihen's earnings at most only doubled from the year before.
2) Price-to-earnings ratio (P/E ratio) The company is trading at a very attractive P/E ratio of only 5.48x, based on a discount to Liihen at 8x, the company should be worth RM2.57, a 46% upside from its current price. This is more than justified as SHH has better earnings growth compared to Liihen.
3) Potential dividend per share of RM0.22 based on 70% payout ratio, lower than 2015's 75% payout implying a dividend yield of 13% Even after paying ot the dividend, the company will still be in healthy cash per share position of RM0.38. There is no reason for the company to not pay out dividends as their capex requirements is less than RM2m per year anyway and their cash flow is strong with free cash flow per share of RM0.24. If we were to assume that 8% dividend yield is fair for the company, the company should appreciate to a price of RM2.81, an upside of 60%.
4) Realisable net asset value a 53% premium over book value Most are not aware that SHH owns a massive 16.6 hectare industrial land in Pagoh where it houses its operating facilities. What's interesting about these land are that they have not been revalued since 1994! Since then, major developments have taken place including Sime Darby's Bandar University Pagoh project with the building of 5 university campuses with GDV of RM8bil.
If I were to take the company private and break up the company and sell its parts, I would sell off all the land for RM81m which is roughly similar to the current market cap. Then, I would still pocket the company's net cash of RM29m (maybe RM20m net of all fees, of course I have not included the value of its machinery and buildings yet). A hefty profit for doing basically nothing!
感谢 vgi兄之功课.
有位朋友問馬雲：
我怎麼樣才能擺脫貧窮，
過上好的生活，
就像你一樣呢？
馬雲說：
你永遠不會像我一樣，
因為我所做的事你都不敢做，
要不然就是認為這件事有多難多難，
你窮的是你的思想！
只有打開思想，
用頭腦嘗試著去分析，
然後勇敢的去嘗試，
你才有可能成功！
如果區區只因為幾次的失敗跟挫折，
你就不去想了，不敢再嘗試了，
那麼這將註定了你的生活品質！
今天很残酷，明天更残酷，後天很美好，但是絕大部份人死在明天晚上！
馬雲
==SHH 的基本因素强.不要錯失良机.看好成長.
1）美国的财富藏于民间，有3分之2的经济增長来自于消费领域。
2）美国人号称是全球最浪费的民族。
3）美国为全球最大的进口市塲。
4）区区傢俬算是小儿科，旧了就换新的，没什么的，因此任何时期傢俬都有不错的销量。
shh rm2 内最后进入机会.
幸福的未来己看到,,等一个快到的春天,不远了,趁股价还未大副度开动前进入！
人是健忘的,分享之前的文章---大家有福有财一起发. 转贴自kydarun 兄的精选---公司需要有以下的条件之一：
1. 未来盈利开番的确定性非常高，而且盈利开番快。
2. 营收和净利没有下降，可是股价因为某些事件而大幅下降。
3. 股价不能长期被低估。
4. 股价不能起跑太过多。shh 7412---公司是国内很好的家具制造商。今年盈利对比2015年开番，
主要是因为美元走强。公司的营业贡献主要是美国。看好公司的营业额继续增长。
- 和其他家具公司比较，shh拥有很好的ROE (17%)，最低的PE (6.6)，和合理的DY (5.12%)
-看好股票拆细或红股的來到.
- 目前PE是6.6，如果说家具业的合理PE是9的话，那么股价 = RM2.64。还没算上未来的营业额成长。
- 个人认为这家公司是家具业里面更好的投资选择。
shh 7412--
rolling 4 quarters--
stock price=rm1.95
eps=29.48 sen
nta=1.73
dps=10 sen
pe=6.62
roe=17.05
dy=5.12%
52w ;0.99--2.48
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