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Monday, 22 June 2015

Focus Lumber - High Dividend & Beneficiary of Strong USD

As posted in Malaysia Invest Coach FB page:

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.

Disclaimer and Declaration

The full content of the article is for educational purposes only and should not be used as investment recommendations. We are not responsible for all investment activities conducted by the participants and cannot be held liable for any investment loss. Examples of specific shares may be citied for illustration purposes.


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