Wednesday, November 12, 2014

HLIND 豐隆工業 (3301)

Company background

HLI, which is part of the Hong Leong Group of companies, manufactures and sells consumer and industrial products in Malaysia, Asia, Europe, Australasia and other countries. The company was incorporated in 1964 and was formerly known as Fancy Tile Works Limited. It changed its name to Hong Leong Industries Bhd in 1979.

HLI’s consumer products segment manufactures, assembles and distributes motorcycles, scooters, as  well as related parts and products; and manufactures and sells ceramic tiles.

The industrial products segment meanwhile, manufactures and sells fibre cement and concrete roofing tiles. HLI is also involved in the research and development of ceramic tiles and related products; procurement and sale of raw materials, parts and components, and finished products of ceramic tiles for the local and export markets; trading of ceramic tiles; distribution of building materials; and property management activities.
http://www.kinibiz.com/story/stock-stalk/117391/hli-a-promising-dividend-play.html Oct.2014 - FY2015

HLI has two principal business activities: consumer(motorcycles,ceramic tiles) and industrial products(finer cement+roof tiles). 

The former is primarily involved in the manufacturing, assembly and distribution of motorcycles and scooters, as well as their related parts and products. This division is also involved in the manufacturing and sale of ceramic tiles. 

As for the company’s industrial product segment, it is mainly involved in the manufacturing and sale of fibre cement and concrete products. However, the ongoing corporate exercise will see HLI disposing its concrete business to NARR, which will leave the former’s industrial products division largely focused on fibre cement manufacturing only. 

Apart from this, HLI also has associate companies that are involved in the manufacturing, assembly and distribution of motorcycles, motorcycle engines and spare parts, as well as the manufacturing and sale of newsprint and related paper products. 

(RHB OSK Report Feb.2014 - FY2014)

Customers



Management

According to Bloomberg, the major shareholders of HLI are Hong Leong Manufacturing Group Sdn Bhd (75.39%), Hong Leong Industries (3.48%) and Public Smallcap Fund (1.37%) . At the forefront of the company are its chairman Kwek Leng San and group managing director Jonathan Forrest Wilson. Singaporean Kwek Leng San is brother to business tycoons Quek Leng Chan and Quek Leng Chye, who are both major shareholders of HLI.

HLI chairman Kwek Leng San is 59 and graduated from the University of London with a Bachelor of Science (Engineering) degree. He also holds a Master of Science (Finance) degree from City University London. According to HLI’s 2014 annual report, he has “extensive business experience in various business sectors, including financial services and manufacturing”.

Kwek was appointed to the HLI board in September 1990 and assumed the dual roles of president and chief executive officer of the company in 1993. He was appointed chairman of HLI in February 2012. He is also the chairman of Malaysian Pacific Industries Berhad, Narra Industries Berhad and Southern Steel Berhad. He is also a director of Hong Leong Company (Malaysia) Berhad and the Hong Leong Foundation.

According to the annual report, group managing director Jonathan Forrest Wilson aged 50, an American, graduated with a Bachelor of Science in Chemical Engineering from Catholic University, Washington DC. He also holds a Master in Business Administration, Rutgers University Executive Program, Singapore. Wilson has worked in Asia for over 20 years, most recently as chief operating officer of Gold Coin Group. Wilson has also worked with specialty chemical company, Great Lakes Chemical in various regional roles throughout the Asia-Pacific. He joined HLI as group managing director in January this year

Competitor

該公司發文告表示,現財政年(FY2013)的表現較上個財政年優,歸功於消費品的國內需求改善,然而,鄰國競爭對手低價拋售工業產品,卻顯著打擊纖維水泥業務。豐隆工業預計,截至2014年6月30日止財政年的消費品和工業品業務皆令人滿意。

Business








(RHB OSK Report Feb.2014 - FY2014)

豐隆工業主要進行建材製造及貿易活動,並製造、組裝及分銷電單車,是國內電單車市場的第二大業者。該公司最近撤出半導體業,但同時擴大建材業務。
http://biz.sinchew.com.my/node/52177 Sept.2011 - FY2012

豐隆工業(HLIND,3301,主要板消費)完成重組后,摩哆和建材將成核心業務,今年底業務將擴展至洋灰業,而且最低基薪落實后,原使用公共交通的勞工將有能力購買摩哆,有助刺激摩哆業務銷量。

目前,該公司旗下野馬哈(Yamaha)摩哆在國內市佔率已達33%,最低基薪制將從2013年起生效,國內320萬名現有每月基薪低于900令吉的勞工,使勞工消費能力提高,或帶動摩哆銷量。

另外,豐隆工業以2億3520萬令吉收購謙工業(Hume Industries)后,丹斯里郭令燦在后者的間接持股高達77%。該公司已在霹靂州建廠,預計今年底可投產,每年可生產150萬公噸硬磚或200萬公噸洋灰,每公噸成本約410令吉。儘管洋灰廠無法趕在下半年投產,不過旗下的Guocera磚早在市場多年,穩佔本地第2及最大出口瓷磚商地位,成長前景亮眼。
http://www.chinapress.com.my/node/343389 Aug.2012 - FY2013

Yamaha Motor


Hong Leong Yamaha Motor (HLYM) has been the official franchise holder for completely-knocked-down (CKD) and completely-built-up (CBU) Yamaha motorcycles and all-terrain vehicles (ATVs) in Malaysia since 1978. HLYM has a plant in Sungai Buloh, Selangor, with an annual production capacity of 250,000 units that currently manufacture three moped, three automatic scooter and two street motorcycle models for the Japanese global giant. 


New players entering the motorcycle market have pushed aggressively into the lower-end segment by offering large discounts and other incentives. However, total industry volume (TIV) has continued to grow, with FY13 posting a commendable 5.4% growth to 592,126 units vs FY12’s 561,798 units. This was attributed to Malaysia’s sustained economic growth that has kept demand buoyant and upbeat. HLYM currently holds approximately 33% of the industry’s total market share, slightly behind leader, Honda. That said, this share of the market affirms its position as a leading manufacturer and distributor of motorcycles in the country, particularly in the premium segment. 


Although Malaysia’s motorcycle industry is a relatively mature one, we expect the two-wheel segment’s TIV to grow by 3-4% y-o-y. A high proportion of Malaysia’s population is under the age of 30 and we believe this age group will be the pillar for sustainable strong motorcycle volume sales in the coming years, especially when this demographic enters the workforce. The recent years have seen a significant number of large capacity motorcycles (popularly known as “big bikes”) on Malaysian roads and we understand that HLYM plans to introduce new models of big bikes into the local market to tap into the growing demand. Although we do not expect the company’s sales to shoot up dramatically from the introduction of these new models, we do expect sales to be sustainable at current levels in the coming years. This will be driven by Malaysia’s and Asean’s economic growth, as well as the introduction of various new Yamaha models for both the local and Vietnam markets.

Yamaha’s market share in Vietnam stands at 22%, or less than the 33% it enjoys in Malaysia. The difference lies in the market segment, with the Japanese motorcycle manufacturer focusing on the premium segment in Malaysia while Yamaha Vietnam sells affordable motorcycles in the Asean nation – this is why this unit books thinner margins vis-à-vis its Malaysian operations.  


Historical trends have shown that HLYM enjoys a high EBIT margin of 14-16% while the EBIT margin of its Yamaha Vietnam associate is only between 3% and 5%. Taking into account the weakening MYR and the additional costs incurred in the manufacturing of motorcycles in the coming financial year due to new safety regulations introduced, our FY14/15 EBIT margin estimates are around 14/15%. Going forward to FY15, and based on our in-house estimates, we expect the MYR to strengthen. Hence, the EBIT margin estimate for FY15 is higher compared to FY14. 

(RHB OSK Report Feb.2014 - FY2014)

也许最令人期待的是越南yamaha motorcycle的销售,在这个motorcycle的国度(年售3百万辆),可以说是无限商机。

根据2007年的资料,越南进口1000cc-2000cc二手轿车的税务约7000美元,这对越南国民来说是不可能的价格(5年薪金,不吃不穿,才可以存到。),加上没有宽敞和通畅马路让你行驶。
4名国人中有一人持有1辆motor,汰换率偏低,如果经济向好,外来品牌的销售提高不是问题。
外来品牌只要在当地设厂,就不会有税务上的问题。
越南的local assembly配件多来自中国市场,且市场上有很多冒牌(与名牌差一个英文字母),这间接帮助了拥有良好信誉的商家。前提是,国人的要求提高。

外来品牌的市场份额,从2002年的42%,上升到55%(2006),这个比例在近年还在提高。
根据最新的数据,honda的市场份额为40%(估计1.2百万辆),yamaha的市场份额为20%,虽然这个数据,和hlind年报的资料有所出入,不过仍旧可以参考。

根据hlind年报指出,越南对125cc以上的motor征收20%的税务,这已让yamaha的市场份额从27.4%降到了25.5%,这也间接的拖低了对hlind的贡献。
当然这些业者也不会坐以待毙,只要更改款型应变就可以了。
http://www.investalks.com/forum/forum.php?mod=viewthread&tid=2648&extra=&highlight=hlind&page=1 #1 (发表于 2010-4-22) - FY2010





UOB Kay Hian expects HLI to deliver recent first quarter 2015 (1QFY15) quarter-on-quarter results, supported by improvements across all divisions. It noted that despite the overall local motorbike market seeing a slowdown in sales in the first half of 2014, Yamaha Motor recorded a slight improvement in sales volume and has overtaken Honda as the leader in the local market.

“While we do not expect the motor division’s growth to accelerate in the near future, particularly after the implementation of GST in April 2015 which could dampen consumer spending, we believe HLI’s strategies, which include the introduction of affordable models ( with tepid 3-4% net profit growth per annum,” the research house said.
http://www.kinibiz.com/story/stock-stalk/117391/hli-a-promising-dividend-play.html Oct.2014 - FY2015

Ceramic Tile (瓷砖)


Guocera Holdings SB (Guocera) is Malaysia’s key tile manufacturer with a combined production capacity of 38.3m sq m per annum. It has a strong brand presence locally and globally, and approximately 30% of its sales come from the export market. Guocera has been in the industry for more than a decade and, although most of its products are priced at a premium, we believe the company’s selling points lie in its superior product quality, wide product range and strong distributional network. 

Note that Guocera had no new product launches in 2011 and 2012, and only recently introduced its latest range of digitally-printed tiles in Nov 2013 that resemble wood or stone panelling. We understand that there will be a new product launch in March 2014. 

FY12 was a loss-making year for HLI’s tiles division. However, Guocera rebounded to profitability in FY13, as prior operational hurdles have been cleared. Its Kluang plant, which was previously in red due to an expansion to double the capacity of its porcelain production line, is now back in the black. They are looking to fire the second kiln this quarter as well to meet the growing demand. 

Guocera’s Meru plant in Selangor, we understand, has always operated at full capacity. 


Our FY14/15 EBIT estimates are MYR30.7m/43.8m, which take into consideration the: 
i) gradual improvement in efficiencies, 
ii) higher utilisation rate, 
iii) 18.8% power tariff hike from 1 Jan 2014, and 
iv) increase in tile ASP. 





(RHB OSK Report Feb.2014 - FY2014)

Guocera的工厂分别坐落在kluang 和 klang ,前者是100%持有, 后者是70%
http://www.investalks.com/forum/forum.php?mod=viewthread&tid=2648&extra=&highlight=hlind&page=1 #1 (发表于 2010-4-22) - FY2010

The research house also expects HLI’s building materials division to see improvement. “For the tile division, a better product mix and the company’s strategy to focus on more profitable Asian and Australian export markets would partially offset the exclusion of Hume Concrete’s earnings from the group 2QFY15 onwards. Meanwhile, for its fibre cement division, management expects it to bottom out in 2HFY15, once its new capacity that just came on stream stabilises.”
http://www.kinibiz.com/story/stock-stalk/117391/hli-a-promising-dividend-play.html Oct.2014 - FY2015

Fiber cement + Roof tiles


HLI has two manufacturing plants that produce cellulose fibre cement products - one in Petaling Jaya, Selangor, and the other in Ipoh, Perak. The combined annual installed capacity of the two plants is approximately 225,000 tonnes per annum (tpa) before expansion plans to boost capacity at both facilities by 30% each were put in place.  


We note that HLI invested approximately MYR60m to increase the capacity, which resulted in a temporary disruption to operations at the plants. As a result, HLI’s EBIT margins from its FCB division dropped substantially in FY13 vis-à-vis the last two financial years. The expansion is deemed necessary, as existing capacities at the plants are now fully utilised.  

HLI is also involved in the roof tile manufacturing business but this division’s contributions over the past few financial years have been less than MYR2m per year.


There are positives to look forward to. Despite the expansion at the Petaling Jaya plant being only slated for completion by the end of FY14, we understand that works at the Kanthan facility have been completed. Going forward, we expect a combined FY14/15 net profits of MYR23.6/MYR30.6 for both the FCB and roof tiles businesses. 

These will be driven by: 
i) better EBIT margins on improved utilisation post plant expansion, 
ii) extra capacity to cater for increasing demand in a market buoyed by the robust growth of the construction sector, and 
iii) an anti-dumping duty rate imposed on FCB imported from Thailand. On the latter, note that the Government imposed a 13.96-63.1% preliminary anti-dumping duty rate on FCB imports from Thailand effective until 29 March 2014 from 30 Nov 2013 http://www.thesundaily.my/news/1036064

Associates


Hicom-Yamaha Manufacturing Malaysia SB’s contribution to HLI has always been in the MYR2m-3m range. In line with the growth of sales of Yamaha motorcycles locally, we estimate a contribution of MYR2.6m/MYR2.7m for FY14/FY15. 

While the newspaper publishing industry globally has been perceived as a sunset industry, this is really not the case in Malaysia. We expect Malaysian Newsprint Industries SB’s contribution to HLI to rise slightly higher than in previous financial years, or MYR8.5m/MYR8.6m for FY14/FY15 as it further improves its utilisation and operating efficiencies. 

(RHB OSK Report Feb.2014 - FY2014)



Cost/Pricing

由於鋼鐵價格具波動性,該公司也容易受到賺幅波動影響,特別是電單車及水泥業務。
http://biz.sinchew.com.my/node/52177 Sept.2011 - FY2012

Tile manufacturers were already bracing themselves for the 1 Jan 2014 power tariff hike, but the 18.8% quantum came as an unpleasant surprise as electricity costs constitute about 11% of the manufacturers’ total operating costs. However, the hike will not pose a huge cost constraint to Guocera, as it recently increased the price of its tiles, which has acted as a buffer to the higher electricity bill. 

(RHB OSK Report Feb.2014 - FY2014)

Growth/Strategy


HLI’s key Yamaha business unit will book healthy profit growth again from FY15 onwards after FY14 is expected to see a 4.7% y-o-y drop from the weakening MYR vs the JPY. 

The last few years have seen HLI’s tiles and fibre cement board (FCB) unit expanding its plant to cater to growing demand, although it was hit by teething problems initially. With all expansions now either concluded or coming to an end, and with demand expected to growth healthily – coupled with the Government imposing anti-dumping duties to counter fibre board dumping from Thailand, we expect a significant bottomline improvements for both units. HLI’s other businesses are also expected to continue growing at a healthy rate. 

(RHB OSK Report Feb.2014 - FY2014)







(RHB OSK Report Feb.2014 - FY2014)


FY13 saw Guocera returning to the black. As we anticipate further utilisation rate improvement at its Kluang, Johor plant, we are positive on its earnings growth prospects going forward, especially with the construction and property sectors being expected to remain healthy. Meanwhile, we expect demand to pick up in the export market, buoyed by the economic turnaround in the US and the Eurozone. However, a single-digit sales growth is justified as we also expect keener competition in the industry, exacerbated by cheap imports from other manufacturers, particularly from China. 

(RHB OSK Report Feb.2014 - FY2014)

“Post the restructuring exercise and share price adjustment, HLI has emerged as an attractive dividend stock with 6%-7% yields in FY15-17, assuming a payout ratio of 50%. We estimate there could be 0.5-1.0 percentage point upside to the yield as HLI may pay up to 55% of its earnings given the company has no significant capex over the next two years,” the research house opined.
http://www.kinibiz.com/story/stock-stalk/117391/hli-a-promising-dividend-play.html Oct.2014 - FY2015

Dividend policy

Corporate exercise

(1) Proposed Acquisition

HLI will acquire the entire equity interest in HIMB for a total purchase consideration of RM235.2mil to be satisfied by the issuance of 46,759,443 new HLI shares at an issue price of RM5.03 per HLI share.

The proposed acquisition will enable HLI to expand its building materials business as the HIMB Group is principally involved in (a)manufacture and sale of concrete and related products, (b)manufacture and sale of cellulose fibre cement products, and (c)manufacture and sale of concrete roofing tiles, which are complementary to the existing building materials business of HLI Group.

(2) Proposed Subscription 

Hume Cement will issue and HLI will undertake the proposed subscription of up to 175mil ICPS at par value of RM1.00 per ICPS for a total subscription value of RM185mil to be satisfied by cash.

The proposed subscription will enable HLI to participate in the cement industry.

On 25 August 2010, Hume Cement entered into an engineering, procurement and construction contract to appoint TianJin Cement Industry Design & Research Institute Co, Ltd for the design , procurement, construction and commission of a new clinker and cement plant ranging from raw materials crushing to cement packing and loading, with a capacity of 5,000 tons clinker per day on 3 parcels of land located in Daerah Kinta, Perak.

(3) Proposed Rights Issue

The proposed Rights Issue, indicatively priced at RM1.45 per Rights Share, will raise gross proceeds of up to RM231.6mil, which will be mainly utilised to repay bank borrowings.

The Proposed Rights Issue provides an opportunity for the entitled shareholders of HLI to participate in an equity offering in the Company on a pro-rata basis and to subscribe for new HLI Shares at a discount to prevailing market prices. In addition, the Proposed Rights issue enables HLI to raise funds at an attractive and lower cost without incurring additional interest cost.

(4) Proposed Demerger

HLI proposes a capital distribution of up to 119,802,303 MPI shares to the shareholders of HLI on the basis of 75 MPI shares for every 300 HLI shares held in HLI after completion of the Proposed Rights Issue.

MPI is also listed on the Main Market of the Bursa Malaysia Securities Berhad. The MPI Group is involved in manufacturing, assembling, testing and sale of integrated circuits, semiconductor devices, electronic components and lead frames to customers worldwide. 

The proposed demerger will unlock shareholder value and enable shareholders of HLI to have a direct equity participation in MPI.
Press release 10.Nov.2010 - FY2011

豐隆工業(HLIND, 3301, 主板消費品組)宣佈將2億5千500萬令吉資金,投資在丰隆收入管理基金II,後者主要投資股票證券。丰隆收入管理基金II是由丰隆資產管理公司所管理,主要是投資股票證券。
上述投資將以貸款及公司內部資金融資,預料對公司有利,將使公司的負債比例,從現有的0.47倍提高至0.72倍。
http://biz.sinchew.com.my/node/50378?tid=6 Aug.2011 - FY2012

(1) Proposed Disposal

  1. (i)  a conditional Shares Sale Agreement (“HIMSB SSA”) for the proposed disposal to Narra of the entire issued and paid-up share capital of Hume Industries (Malaysia) Sdn Bhd (“HIMSB”), which shall comprise 30,000,000 ordinary shares of RM1.00 each ("HIMSB Shares"), for a total disposal consideration of RM48,000,000 to be satisfied by the issuance of 48,000,000 new ordinary shares of RM1.00 each in Narra ("Narra Shares") at an issue price of RM1.00 per share (“HIMSB SSA Consideration Shares”) (“Proposed Disposal of HIMSB”);  

  1. (ii)  a conditional Shares Sale Agreement (“ICPS SSA”) for the proposed disposal to Narra of the entire 175,000,000 6-year 2% non-cumulative irredeemable convertible preference shares of RM1.00 each in Hume Cement Sdn Bhd ("HCement") (“HCement ICPS”) for a total disposal consideration of RM300,000,000 to be satisfied by the issuance of 300,000,000 new Narra Shares at an issue price of RM1.00 per share (“ICPS SSA Consideration Shares”) (“Proposed Disposal of HCement ICPS”) 



    (2) Proposed Capital Distribution

    Upon completion of the Proposed Disposals, HLI shall, subject to all requisite approvals being obtained, implement a proposed capital distribution comprising:


    1. (i)  a proposed reduction of the capital of HLI in accordance with Section 64 of the Companies Act, 1965 (“Act”) (“Proposed Capital Reduction”) involving a reduction of share premium reserve; and

    2. (ii)  a capital repayment exercise involving the distribution of 345,030,635 Narra Shares on the basis of 1,080 Narra Shares for every 1,000 ordinary shares of RM0.50 each held in HLI, representing substantially all the Consideration Shares to be received by HLI pursuant to the Proposed Disposals, to shareholders whose names appear in HLI’s Record of Depositors (“Entitled Shareholders”) as at the close of business on a date to be determined and announced later (“Entitlement Date”) 
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1406769 Sept.2013 - FY2014

納爾拉(NARRA,5000,主板工業產品組)通過發股以4億4千800萬令吉收購豐隆工業(HLIND,3301,主板消費品組)旗下洋灰業務,以多元化業務至洋灰事業,而後者將在完成脫售計劃後,以1千股豐隆工業配送1千零80股納爾拉的比例回退股東,讓股東可藉此參與兩家上市公司活動。
納爾拉發文告表示,與豐隆工業和豐隆製造業集團私人有限公司(HLMG)簽署股權買賣協議,將透過發售新股方式,以4千800萬令吉和1億令吉向兩者收購謙工業(馬)私人有限公司(Hume Industries)和謙洋灰私人有限公司(Hume Cement)所有股權。

隨後,納爾拉將與豐隆工業簽署有條件股權買賣協議,以發售總值3億令吉新股來收購謙洋灰為數1億7千500萬股不可贖回可轉換優先股。相關新股發售價為1令吉,相等於納爾拉截至2013年9月9日止5日成交量加權平均市價(5VWAP)93仙,溢價7仙或7.5%。

豐隆工業發文告指出,計劃展開資本回退活動,以1千股豐隆工業送1千零80股納爾拉的比例,派送3億4千503萬零635股,進而讓股東能直接參與兩家上市公司的活動。

此外,在相關脫售計劃完成後,豐隆工業將直接持有納爾拉33%股權,而子公司HLMG持有納爾拉股權則將從61.6%擴大至78.6%,由於兩者均無意向納爾拉展開全面獻購計劃,因此將向證券監督委員會尋求豁免。目前,企業大亨丹斯里郭令燦控制的豐隆集團,為納爾拉及豐隆工業的最大單一股東。他直接及間接持有納爾拉的74.72%,以及持有豐隆工業的77.04%股權。
http://biz.sinchew.com.my/node/82034?tid=6 Sept.2013 - FY2014

丰隆集团旗下Narra工业有限公司(NARRA,5000,工业产品组)将以4亿4800万令吉代价,透过完全换股方式,分别向姐妹公司收购一家混凝土制造商(Hume Industries)和一家洋灰制造商(Hume Cement)。

在致给大马交易所的一项声明中,从事家具制造和室内设计服务的Narra工业说,它将以4800万令吉向丰隆工业有限公司(HLIND,3301,消费产品组)收购混凝土生产商谦工业(马)私人有限公司的100%股权。同时,Narra工业也将买下谦洋灰私人有限公司的全部1亿7500万6年年利2%非累积不可赎回可转换优先股,这项卖方为丰隆工业,成交价达3亿令吉。与此同时,Narra工业建议斥资1亿令吉,向丰隆制造集团私人有限公司,收购谦洋灰的全部股份。

Narra工业称,配合上述收购,它也会着手一项资本削减和股票统一活动。在完成收购后,丰隆工业计划在一项资本回退活动下,分发3亿4503万Narra工业股票予其股东们。这项行动的派发比例为每持1000丰隆工业,可获得1080股的Narra工业股票。
http://finance.sina.com/bg/economy/kwongwah/20130912/0544860956.html Sept.2013 - FY2014


丹斯里郭令燦在10年內,第四度把旗下洋灰資產,整合在建材組中。
2003年,他曾把納爾拉的前身(當時為謙纖板(Hume Cemboard Bhd),脫售其洋灰與混凝土業務給謙工業(Hume Industries)。
2010年,郭透過私下持有的豐隆製造集團(HLMG)對謙工業展開私有化行動,並於翌年4月完成,7個月後,HLMG脫售部份謙工業股權給豐隆工業(HLIND,3301,主板消費品組)。
最近,豐隆工業把謙工業(Hume Industries)與謙洋灰(Hume Cement)一些資產,注入納爾拉(NARRA,5000,主板工業產品組)。
納爾拉與豐隆工業和豐隆製造業集團私人有限公司(HLMG)簽署股權買賣協議,透過發售新股方式,以4千800萬令吉和1億令吉向兩者收購謙工業(馬)私人有限公司(Hume Industries)和謙洋灰私人有限公司(Hume Cement)所有股權。
http://biz.sinchew.com.my/node/82887?tid=6 Sept.2013 - FY2014


HLI’s prospects remain bright despite the ongoing asset disposal, as its: i) key Yamaha business unit is booking healthy growth, ii) tiles and fibre board unit is turning around, and iii) other businesses continue to grow at a healthy rate. Meanwhile, the redemption of HLI’s high-cost medium term note (MTN) using its lower-yield unit trust investment will give rise to saving that will contribute up to MYR10m in annual net profit is timely, as it will compensate for any loss of income from its concrete business and ICPS dividend. 


The ICPS only yield a 2% in dividend annually, or MYR3.5m per year, while the concrete business had contributed net profit of MYR3.8m/7m in FY12/13. The potential settlement of its MTN, by using the redemption of its investments in unit trusts, will see net savings of up to MYR10m per annum, given that its MTN carry coupon rate is up to 8.57% annually vs unit trust investments that generate a return of around 5% per year. Hence, the exercise is timely as it will nicely compensate any loss in income from the ongoing exercise.  




(RHB OSK Report Feb.2014 - FY2014)



Results



Bear case



Bull case


SWOT




(RHB OSK Report Feb.2014 - FY2014)