Sunday 30 August 2015

Latitude: Still A Remarkable FY2015

Latitude Tree FY15Q4 Financial Result

LATITUD FY15Q4 FY15Q3 FY15Q2 FY15Q1 FY14Q4
Revenue 179.6 165.6 189.1 175.7 142.8
Gross Profit 29.4 27.5 34.4 26.2 20.3
Gross% 16.4 16.6 18.2 14.9 14.2
PBT 21.2 21.3 29.5 18.5 10.3
PBT% 11.8 12.9 15.6 10.5 7.2
PATAMI 16.2 19.5 27.4 16.6 8.7






MAS Rev 26.4 31.2 32.1 27.7 23.4
MAS PBT 1.5 5.4 5.4 2.3 -0.7
VIET Rev 145.9 125.8 149.4 141.0 114.4
VIET PBT 18.4 14.4 22.6 14.8 13.0
THAI Rev 4.9 9.0 5.6 5.8 5.0
THAI PBT 0.2 1.1 0.7 1.0 -0.4






Total Equity 410.7 390.1 366.6 327.2 308.2
Total Assets 594.3 575.6 548.6 502.8 475.3
Trade Receivables 49.3 63.3 63.4 59.9 37.0
Inventories 118.7 109.7 103.9 97.4 93.5
Cash 165.8 142.1 151.3 124.0 123.1






Total Liabilities 182.4 184.3 181.0 173.1 167.9
Trade Payables 88.1 75.0 89.9 91.7 79.1
ST Borrowings 76.9 90.4 82.6 74.8 78.8
LT Borrowings 12.4 17.1 6.1 6.4 7.9






Net Cash Flow 19.0 -1.0 15.9 -1.6 26.5
Operation 65.4 22.8 22.2 6.1 81.2
Depreciation 18.6 14.0 9.0 4.4 17.6
Investment -37.8 -34.8 -7.5 -2.7 -37.6
PPE purchase 31.6 28.7 2.5 1.1 10.0
Financing -14.5 3.6 -2.2 -6.1 -18.5
FCF 33.8 -5.9 19.7 5.0 71.2






EPS 16.66 20.07 28.19 17.13 8.93
NAS 4.22 4.01 3.77 3.37 3.17
Net D/E Ratio NC NC NC NC NC


Latitude's latest FY15Q4 result is not as good as I would have expected but it's still a good result.

Its revenue improves 8.5% QoQ to RM179.6mil but PATAMI drops 16.9% to RM16.2mil in the same period. However, PBT for both periods are almost the same.

This lower net profit is mainly due to higher tax in current period, in which there is an RM2.375mil deferred tax expense.

Better sales in current quarter is due to higher orders, higher production output & strengthening of USD vs MYR, while marginally lower PBT QoQ is due to lower unrealized forex gain compared to previous quarter.


Latitude (RM mil) FY15 FY14 FY13 FY12 FY11
Revenue 710.0 651.0 493.7 517.9 500.6
Revenue growth % 9.1 31.9 -4.7 3.5 -1.2
Gross Profit 117.5 109.8 71.2 53.5 57.6
Gross% 16.5 16.9 14.4 10.3 11.5
PBT 90.4 71.9 35.7 16.6 21.7
PBT% 12.7 11.0 7.2 3.2 4.3
PATAMI 79.8 55.0 24.4 9.8 12.5
PATAMI growth % 45.1 125.4 149 -21.6 -54.9






EPS 82.04 56.59 25.07 10.1 12.8
NAS 4.22 3.17 2.39 2.16 2.02
ROE 19.4 17.8 10.5 4.7 6.7


For the whole FY15, revenue increases 9.1% YoY while PATAMI grows much more at 45.1% mainly due to full year contribution from acquisition of remaining LTIG shares.

RM31.6mil has been spent in FY15 for the purchase of PPE, including RM22mil for the laminating wood factory.

It has a net cash of RM76.5mil which should be its highest ever in its history.

Latitude does not pay attractive dividend. If it decides to pay 25% of its net profit for FY15, then it will be 20sen dividend, or 2.8% yield at share price of RM7.38.




Will Latitude continue to grow its top & bottom lines in FY16?

This may depend on US house sales & consumer spending, as well as its own production capacity.

Or will it make another acquisition with plenty of cash on hand?






At current share price of RM7.38, Latitude is currently trading at actual PE ratio of 9x.

Its share price has been standing tall during the bear run in August, perhaps investors are anticipating good financial result or bonus issue.

Can it still outperform the market in the rest of 2015?

6 comments:

  1. Hi BD,
    I have question on your previous article about Coastal, I saw you published the "unbilled orders and new orders" data for the past quarters and years. I am trying to search for those data. Can I know from where you obtained those data ?
    I suppose I can get the new orders data by going through each and every "company announcements" in Bursa website. But, I can't find the unbilled orders data.
    For property counters, I can find the unbilled sales data from quarterly report but not the non-property counters.

    ReplyDelete
    Replies
    1. Hi. When Coastal announces its quarterly result through Bursa, it will also have a "press release" which will mention its latest order book status.

      Delete
  2. i sold half of Laittud the next day after result out, finally took profit.

    Im abit disappointed of its result, thought it can boost from port strike delayed revenue last quarter like FLB.

    there could be more acquisition since they retained the cash and not giving up div. Nonetheless, i will use the profit taken to buy other shares.

    So far the furniture stocks on my hands are Latitud, Pohuat, SHH.

    Pohuat last week annnounced minor accident i sapu abit, SHH can wait to sell to Hevea or others.

    ReplyDelete