LHT Holdings

[psnijders]

The company did disclose how much they expect to invest in the Kranji Way land and the construction costs: $56m.

It's mentioned on page 5 of this Dec. 12, 2019 filing: https://links.sgx.com/1.0.0/corporate-an...ba9f82cd9a

Based on the Company's current estimates, the estimated total investment costs required for the Company for the Proposed Lease would be S$56,000,000 ("Estimated Total Investment Costs"), including the estimated costs required for and relating to the construction of the Proposed New Building and the Proposed Lease.

They'll fund this with debt and cash. Not sure if they've disclosed anything about Kranji Way after this filing.

[BlueKelah]

The company did disclose how much they expect to invest in the Kranji Way land and the construction costs: $56m.

It's mentioned on page 5 of this Dec. 12, 2019 filing: https://links.sgx.com/1.0.0/corporate-an...ba9f82cd9a

Based on the Company's current estimates, the estimated total investment costs required for the Company for the Proposed Lease would be S$56,000,000 ("Estimated Total Investment Costs"), including the estimated costs required for and relating to the construction of the Proposed New Building and the Proposed Lease.

They'll fund this with debt and cash. Not sure if they've disclosed anything about Kranji Way after this filing.

Well that is actually better news than them just hoarding $$. At least with Kranji investmnet LHT will become a net debt company but with expanded facilities that will give it more earnings. 

Remember Teckwah? Initially also a good supposedly undervalued value pick with lotsa net cash and steady business with small but steady sustainable dividends. 
It was also in a low growth sector and limited local market. 
They also had a lot of cash, everyone was talking about bonus dividends etc... then splashed in on a 60year leasehold building to house their HQ and get some extra rent on the side. was trading at 45 to 55c range after business recovered from lows and then in the end offer just near NAV (yeah value trapped investors at least manage to get out at NAV).

You would have locked a good chunk of $$ there for many years with very poor CAGR thinking company would rewards OPMI.

Perhaps this stock might be worth another look should the earnings double after the factory expansion and the stock still be trading at PE multiple of perhaps 6 or 7

Good luck and best wishes to all those that have vested though. Wish you the best, but LHT does not qualify as an investible cash cow company for me, I reckon u would do just as well putting in the funds into ST Engineering with a 4% yield and strong order book, solid big cap status, makes weapons for the world, wonderful company at fair price

[brattzz]

calling all LHT's holders, please join us by voting "NO" in the up-coming AGM!!
No to all resolutions! to voice our disagreement! :O

[RBM]

calling all LHT's holders, please join us by voting "NO" in the up-coming AGM!!
No to all resolutions! to voice our disagreement! :O

A sincere thank you for your leadership on this matter brattzz - keeping buddies informed of your interactions with LHT IR. Respect. And sometimes decisions like this need to be made, no matter how difficult they may be. I am aligned with this proposal.

I will certainly vote AGAINST for LHT’s AGM resolutions concerning the Dividend, re-election of an Independent Director and Authority to issue new shares. And I encourage other vested buddies to vote AGAINST.

Vested, for a long time.

[BlueKelah]

calling all LHT's holders, please join us by voting "NO" in the up-coming AGM!!
No to all resolutions! to voice our disagreement! :O

A sincere thank you for your leadership on this matter brattzz - keeping buddies informed of your interactions with LHT IR. Respect. And sometimes decisions like this need to be made, no matter how difficult they may be. I am aligned with your proposal.

I will certainly vote AGAINST for LHT’s AGM resolutions concerning the Dividend, re-election of an Independent Director and Authority to issue new shares. And I encourage other vested buddies to vote AGAINST.

Vested, for a long time.

New share is good right more liquidity and also can fund the locl expansion? means possibly higher top and bottom line in the future, rather than trapped in a locked in cash pile. 

I already voted couple month back by selling my holdings, good luck guys

[RBM]

Zoomed into LHT’s AGM this afternoon. Ms. Yap did 100% of the talking. My take-aways….

+ All resolutions were comfortably passed. Votes Against the proposed 3 cent Dividend, Independent Director Wu’s re-election, Director Fees and Company authority to Issue/Allot new shares were approx. 4.5% or >1.43 Mln shares in all cases. For me, the Dividend Level was the issue-of-the-moment and I had anticipated a sizeably higher rejection level. For Director Wu’s re-election, Directors and Management were not required to abstain, despite his lengthy tenure.

+ Some interesting questions & challenges were raised by Shareholders on Resolution items. For me, the AGM’s low point was poor, evasive Company answers to Shareholder questions vis-a-vis dividend level, comparing cash & cash equivalents to the share price and a (bit of a cheeky) question probing on Board size. One shareholder enquired if the Board intends thinking about an Interim Dividend - Ms. Yap flat-out rejected that! As I understood it, the Shareholder only sought a Board commitment to discuss the possibility of Interim Dividends but Ms. Yap hid behind a need for audited FY financials, which is a nonsense. If the Board isn’t prepared to address questions such as Interim Dividend, maybe its time they were re-invigorated?

+ My sense is LHT’s leadership is in denial regarding the dire outcome of the Company’s China venture. As I recall it, LHT has fully written-off this investment. Ms. Yap cited several external factors (e.g. Government) which worked against the Company - but it begs the question…..why weren’t such factors carefully weighed in LHT’s initial decision making? I have to wonder if LHT has the in-house acumen and the worldly-wisdom to successfully prosecute new ventures, particularly outside Singapore.

+ I gained the impression Kranji Way is all-consuming, impacting all major decision making. Clearly LHT retain significant cash holdings in expectation of significant Kranji Way cash-outs. Ms. Yap was commendeably open regarding cost & other challenges that Kranji Way poses but does LHT possess the in-house skills required to successfully progress this critical undertaking?

The foregoing lists my personal take-aways. I hope a recording of the AGM is made available - for those vested, I suggest it would be a worthwhile watch, mainly because of the Q&A. If any buddy believes I’ve ommitted something, please say so.

Vested, for a long time.

[¯|_(ツ)_/¯]

LHT@70

@RBM - thanks for sharing on the zoom agm.

I'm not vested in LHT but LHT had been in my watchlist for quite sometime - I'm just waiting for the right timing to initiate my first batch.

As a valuebuddies, we know that China is a very tough market to crack.  Quite a lot of Singapore company dipped their toes into China and most does not get the results that they wanted - unless they had some monopoly which China company can't copy/duplicate - eg. MMH.

Also, the entry into China market is typically slow by using brute force - which is less than idea.  Some sort of leveraging on partners who had already been successful in China would be a better method.  If you are familiar with SLA, that would be a good case study.  To me, the quick win is achieved but the longer term benefits is probably ruined.  

No right or wrong, we just have to trust the management with the best judgement to swim with the sharks (china market).

BTW, I learn a lot from you and quite a few of your favorite is in my watchlist or vested small small.  Thank you very much and Happy Labour Day! 
 

Gratitude!


 

[RBM]

A 49,000+ chunk of LHT shares changed hands during today’s SGX trading session - at 70/71 cents XD. By LHT’s illiquid standards, that is a chunk. Yet to be seen if Ms. Yap is the acquirer - if she is, given that the shares are XD, it will be the highest unit price she’s ever paid.

I doubt Ms. Yap’s responses to Shareholder questions at the recent AGM have succeeded in placating Shareholder concerns regarding dividend levels and the calibre of in-house skills and know-how to address new ventures, particularly those of an overseas variety. I came away from that Zoomed AGM with the impression that Ms. Yap has a compliant, limited-in-its-pushback Board. Clearly questions raised by minority shareholders were discomforting and unwelcome.

That said, LHT’s share price has robustly held-up during our recent volatile times, aided by a rather thin share-sellers line. With this one, patience is a key virtue.

Vested, for some time.

[RBM]

A 49,000+ chunk of LHT shares changed hands during today’s SGX trading session - at 70/71 cents XD. By LHT’s illiquid standards, that is a chunk. Yet to be seen if Ms. Yap is the acquirer - if she is, given that the shares are XD, it will be the highest unit price she’s ever paid.

I doubt Ms. Yap’s responses to Shareholder questions at the recent AGM have succeeded in placating Shareholder concerns regarding dividend levels and the calibre of in-house skills and know-how to address new ventures, particularly those of an overseas variety. I came away from that Zoomed AGM with the impression that Ms. Yap has a compliant, limited-in-its-pushback Board. Clearly questions raised by minority shareholders were discomforting and unwelcome.

That said, LHT’s share price has robustly held-up during our recent volatile times, aided by a rather thin share-sellers line. With this one, patience is a key virtue.

Vested, for some time.

Postscript to my post of yesterday: it was indeed MD Ms. Yap who acquired that chunk of shares, including some at S$ 0.71 XD.

[RBM]

Solid set of half-year results issued by LHT Friday evening. Revenue up, Profit up, costs appear to be under control, core businesses delivering. Alas, and as usual, no interim dividend, with a pathetic excuse given for why not.

LHT has been particularly illiquid recently – in the last 13 (thirteen) SGX trading sessions only 200 shares have been traded. Maybe these solid results will spur a bit of trading activity …but then again, maybe they will harden the resolve of those seeking to nudge the share price higher, keeping the Sell Queue empty.