FLBHD (5197) - Stocks With Momentum: Focus Lumber
March 17, 2015 : 10:32 AM MYT
Focus Lumber Bhd (+ve)
FOCUS Lumber (fundamental: 1.75/3; valuation: 2.4/3) was InsiderAsia’s stock pick featured on 11 December, 2014. Since then, the stock has gained 33.8%, and added 10 sen or 7.5% to RM1.43 over the past three days. With the stronger USD and improving overseas markets, timber stocks have seen renewed interest.
Focus Lumber, a Sabah-based plywood manufacturer, stands out for three reasons: fairly consistent earnings, a strong balance sheet and attractive dividend yields.
Net profit ranged from RM10 million to RM16 million over the past five years. The company has been building its cash pile with net cash of RM60.4 million in 2014, up from RM28.8 million in 2010.
This translates to 58.6 sen per share, or 41.0% of its share price.
Dividends increased to 8 sen in the last two years, giving an attractive yield of 5.6%. With over 60% of its sales going to US market, it stands to benefit from the US housing market recovery. The stock is trading at a trailing 12-month P/E of 8.8 times and 1.08 times book.
http://www.theedgemarkets.com
March 17, 2015 : 10:32 AM MYT
Focus Lumber Bhd (+ve)
FOCUS Lumber (fundamental: 1.75/3; valuation: 2.4/3) was InsiderAsia’s stock pick featured on 11 December, 2014. Since then, the stock has gained 33.8%, and added 10 sen or 7.5% to RM1.43 over the past three days. With the stronger USD and improving overseas markets, timber stocks have seen renewed interest.
Focus Lumber, a Sabah-based plywood manufacturer, stands out for three reasons: fairly consistent earnings, a strong balance sheet and attractive dividend yields.
Net profit ranged from RM10 million to RM16 million over the past five years. The company has been building its cash pile with net cash of RM60.4 million in 2014, up from RM28.8 million in 2010.
This translates to 58.6 sen per share, or 41.0% of its share price.
Dividends increased to 8 sen in the last two years, giving an attractive yield of 5.6%. With over 60% of its sales going to US market, it stands to benefit from the US housing market recovery. The stock is trading at a trailing 12-month P/E of 8.8 times and 1.08 times book.
http://www.theedgemarkets.com
