LHT Holdings

[RBM]

Hello BlueKelah, I hope those wonderful Taiwanese investment advisors that feature so prominently on your website continue to provide the very best service for the benefit of your portfolio components.

It is my personal view that the most tangible near-term propellant of a higher LHT share price will be its dividend level. If the yield can be materially raised, i.e. to a level more commensurate with LHT’s capacity to pay, then some of your well expressed concerns would disappear or at least be lessened/mitigated. One of my key drivers for pushing hard for a higher dividend level is I want management to devote cash to dividends rather than risk-prone overseas foray’s. Longer-term and closer to home, I wonder if Mr. Market fully appreciates the transformative potential of LHT’s real estate arrangements.

The lack of liquidity in the stock will however always remain ….but for such a micro-market-cap counter, particularly one with entrenched founder shareholders, that usually comes with the territory. Anyone buying into the LHT value-investing story must go into it with the eyes-wide-open mindset that they’ll need to be darn patient in building up their aspired holding.

Best to you Blue Kelah.

Vested

[ghchua]

Hi BlueKelah,

We have to be patient when investing for long term. LHT or otherwise, it applies to every company when we do value investing.

You mentioned a few stock examples, and I am just wondering whether you did track them for long term. I have debated on Riverstone with you previously, so I just leave it to that. You also mentioned Hotung, which I have also previously made a comment on its accumulated losses and sustainability of its yield. You also listed Powermatic, Multichem etc, but did you know that these stocks basically did nothing much in terms of share price until the past few years? In fact, Powermatic and Multichem share price performance were so bad previously that they have to consolidate their shares in order to meet SGX minimum trading price of 20cts. Powermatic had also been also been encouraged by minority shareholders frequently to unlock value of their assets and give higher dividend. Similar case for Spindex. Investors are not really happy with their dividend payout ratio.

You also cited CDW. I just wondering why you said that their product is less relevant. Look at their latest result:
CDW Holding’s FY2021 net profit rose 59.4% to US$2.4 million
The strong growth was underpinned by the strong demand in orders, particularly by automakers for
the larger-sized automotive digital instrument panels used in premium cars as well as high-end
personal computers.
https://links.sgx.com/FileOpen/CDW%20-%2...eID=705918

S***** had been hit by Covid 19, similar to most in the hotel industry. The rights issue is an opportunity for those who see value and wish to participate in the opening up of Australia tourism. I don't see it as a value trap.

I don't wish to talk more about other stocks here because this is ultimately a LHT topic. What I just want to say is that every stock has its own characteristics and one have to analyze them carefully. And also, don't be too quick to write off some of them. Some might not do anything for years in terms of share price, but you might just be surprised when they started moving.

[dreamybear]

Thanks BlueKedah / ghchua for sharing the history of certain stocks - it is an enlightening read for me.  

With regards to minority shareholders stepping up and ask for dividends increase(be it LHT or other stocks), I was wondering other than emailing the IR, are there any more concrete steps minority shareholders can take to facilitate such actions ? No matter what our views are, I won't be surprised to see replies in the form of "in view of the current uncertain economic conditions and challenging market conditions ..... "  

Beyond goodwill, is there any motivation for any controlling shareholders to be generous to minority shareholders ? Generally speaking, minority shareholders are just people who invest a stake in the company(whether thru' thorough research or taking a punt) but do not contribute to the company's profits. Perhaps having a decent dividend pay out will provide a floor to the share price. Then again, any low share price is to the benefit of controlling shareholders who are considering delisting, esp if the company doesn't require any fund raising.

Well, I could always be wrong, hopefully buddy brattzz could update us on the status of reaching out to MD Yap.

[RBM]

Thanks BlueKedah / ghchua for sharing the history of certain stocks - it is an enlightening read for me.  

With regards to minority shareholders stepping up and ask for dividends increase(be it LHT or other stocks), I was wondering other than emailing the IR, are there any more concrete steps minority shareholders can take to facilitate such actions ? No matter what our views are, I won't be surprised to see replies in the form of "in view of the current uncertain economic conditions and challenging market conditions ..... "  

Beyond goodwill, is there any motivation for any controlling shareholders to be generous to minority shareholders ? Generally speaking, minority shareholders are just people who invest a stake in the company(whether thru' thorough research or taking a punt) but do not contribute to the company's profits. Perhaps having a decent dividend pay out will provide a floor to the share price. Then again, any low share price is to the benefit of controlling shareholders who are considering delisting, esp if the company doesn't require any fund raising.

Well, I could always be wrong, hopefully buddy brattzz could update us on the status of reaching out to MD Yap.

Please forgive me for interjecting into your exchange with Blue Kelah,

My personal view is that there are two tactical levers LHT minority shareholders should be focusing on in the immediate future:
+ Raising questions at the forthcoming AGM and indicating to MD Yap now that it is the intention of several (long-standing) shareholders to raise such questions. 
+ Making it clear that if we aren’t satisfied then we’ll vote against pertinent motions at the AGM.

My own experience with LHT’s leadership - Ms. Yap and predecessor Neo - is they don’t want to be embarrassed by awkward questions at AGM’s and they place value on securing a clean sweep of 100% positive votes for all motions. 

These levers are admittedly not substantive in the face of an entrenched majority. After hearing back from brattz, I intend communicating with Ms. Yap (and possibly one ID) myself. I suspect we’ll hear the usual “market uncertainty” verbiage in response but (for me at least) that will not cut it.

Vested

[¯|_(ツ)_/¯]

LHT@70

Thank you guys for the kind sharing, lots of good tips 

A question was raised repeatedly about why the company choose to share their profit with shareholders willingly?

I just wanted to share something that I observed on MMH.

https://news.furman.edu/2018/08/31/chris...ack-field/

Chris provided sports scholarship for his university. Instead of providing $$$, he choose to donate his company shares as the trust fund of the scholarship.  In this case, instead of one time $$$, Chris just need to declare enough dividend or donate more shares (with dividend) to pay for the scholarship.

I caught this news and reflected on what MMH kept saying in AGM, it's dividend policy also includes the needs for dividend of it's shareholders (something like that) - and everything make sense - that MMH has enough cash to sustain 100% pay-out.

I don't think that I'm the only one caught this news. If you look at the top 20 shareholders (these 2 years), you will also noticed some un-usual names.  I'm pretty sure that these shareholders vested in MMH is definitely because of it's consistent (increasing) dividend.

Apologies first for talking about MMH in LHT thread - as moderator disliked me doing this in the past. 



Gratitude!

[brattzz]

yeah, minority shareholders will have to step up and start asking for dividends increase/bonus share issuance already!!
I'll start the ball rolling by emailing MD Yap!

2 weeks has passed, no replies from MD Yap.... looks like have to send in reminder emails... lolz!

best rgds,

[BlueKelah]

yeah, minority shareholders will have to step up and start asking for dividends increase/bonus share issuance already!!
I'll start the ball rolling by emailing MD Yap!

2 weeks has passed, no replies from MD Yap.... looks like have to send in reminder emails... lolz!

best rgds,

you have been ghosted, last time I emailed one of the small cap bosses immediately got reply next day. BOss dun wanna reply they will forward to company investrow PR to reply.

[brattzz]

Ok follow up email, and i got a reply,
-----------------
Hello there,
This email is for MD Yap,
Dear mdm,
For FY2021 results, LHT has done well, and cash level are up,
LHT's current market cap at only $37.5m appears still grossly underpriced against its latest 31Dec21 NAV at $56.5m (including a $36.3m cash reserve),
Please share with us, if, there will be a focused use/deployment of the accumulated cash, for expansion projects/ new business / paying down debts..etc,
Or if otherwise, if the company can consider to increase the dividends payout and hopefully restore back to 5cts / annual?
Or issuance of bonus shares to increase liquidity of company,
Seek your advise,Thank you,From: Minority shareholder
--------------
Dear XXXXXXX,
Thank you for your email. On market capitalization, this is determined by the market stock price and is usually very different from the company’s NAV. On our current accumulated cash, this is for our future plans for the Kranji Way plot of land which has already being announced previously. Hope the above clarifies.Thanks and best regards,
Investor Relations
---------------------------------------------------

[RBM]

Ok follow up email, and i got a reply,
-----------------
Hello there,
This email is for MD Yap,
Dear mdm,
For FY2021 results, LHT has done well, and cash level are up,
LHT's current market cap at only $37.5m appears still grossly underpriced against its latest 31Dec21 NAV at $56.5m (including a $36.3m cash reserve),
Please share with us, if, there will be a focused use/deployment of the accumulated cash, for expansion projects/ new business / paying down debts..etc,
Or if otherwise, if the company can consider to increase the dividends payout and hopefully restore back to 5cts / annual?
Or issuance of bonus shares to increase liquidity of company,
Seek your advise,Thank you,From: Minority shareholder
--------------
Dear XXXXXXX,
Thank you for your email. On market capitalization, this is determined by the market stock price and is usually very different from the company’s NAV. On our current accumulated cash, this is for our future plans for the Kranji Way plot of land which has already being announced previously. Hope the above clarifies.Thanks and best regards,
Investor Relations
---------------------------------------------------

Thank you for sharing your exchange with LHT Brattzz. Candidly stated, LHT IR’s response is a poor and unsatisfactory answer to your polite message. A teaching-your-Grandmother-how-to-suck-eggs market cap vs NAV lecture, followed by a non-quantified hand-waving assertion regarding prospective capital demands pertaining to LHT’s Kranji Way real estate deal. I would have expected a more thoughtful and better considered response to your questions. No reference to Dividends or bonus issue. Normally I’m a supporter of Ms. Yap and I can relate to LHT’s caution regarding forward-looking statements ….but I suggest in this instance her IR Person (her sister?) is treating her shareholder in a less than satisfactory manner.

Thanks again Brattzz
Vested

[BlueKelah]

At least they gave u a reply  

so answer is no increase in dividend, 
cash will be used for future capex. 

== U can vest your money in and wait long long, we are not interested in higher share price as it makes it harder for us boss to accumulate