Bought 2k @ RM 1.34. Why we like Focus Lumber?
Q1 2014 EPS : 3.96
Q2 2014 EPS : 3.44
Q3 2014 EPS : 3.21
Q4 2014 EPS : 4.92
Total Rolling 4 Quarter EPS for 2014 = 15.53
P/E = 1.34 / 15.53 = 8.63x (comfortable zone)
Let's see for the 1st Quarter 2015:
Q1 2015 EPS : 3.22
Assuming FL Berhad able to maintain the EPS just like Q1 2015 for the next 3Q:
3.22 X 4 (annualized) = 12.88
Forward P/E = 1.34/12.88 = 10.4x (still at comfortable zone)
Looking at the current MYR vs USD situation, personally we believe the earnings should not be weaken as 98% of their total revenue is for export market. 67% of revenue comes from US.
What attracted us is their dividend yield of 5.97% for year 2014. Dividend has been quite consistent given for the past 4 years. Guts feeling telling me that for 2015, the dividend yield should be around the same like 2014. It would be a good stock to keep under my portfolio.