LATITUD (7006) : Latitude: Still Looking Good
Latitude Tree FY15Q1 Financial Result
| LATITUD | FY15Q1 | FY14Q4 | FY14Q3 | FY14Q2 | FY14Q1 |
| Revenue | 175.7 | 142.8 | 146.8 | 184.4 | 177.1 |
| Gross Profit | 26.2 | 20.3 | 23.8 | 35.8 | 29.9 |
| PBT | 18.5 | 10.3 | 14.8 | 26.0 | 20.7 |
| PBT% | 10.5 | 7.2 | 10.1 | 14.1 | 11.7 |
| PATAMI | 16.6 | 8.7 | 12.8 | 19.0 | 14.6 |
| MAS Rev | 27.7 | 23.4 | 32.3 | 31.6 | 28.9 |
| MAS PBT | 2.3 | -0.7 | 3.0 | 2.1 | 1.2 |
| VIET Rev | 141.0 | 114.4 | 108.1 | 147.7 | 142.2 |
| VIET PBT | 14.8 | 13.0 | 10.9 | 24.9 | 20.0 |
| THAI Rev | 5.8 | 5.0 | 6.4 | 5.1 | 6.0 |
| THAI PBT | 1.0 | -0.4 | -0.1 | -0.3 | 0.02 |
| Total Equity | 327.2 | 308.2 | 296.8 | 270.1 | 249.8 |
| Total Assets | 502.8 | 475.3 | 475.5 | 530.1 | 478.6 |
| Trade Receivables | 59.9 | 37.0 | 49.1 | 58.2 | 55.4 |
| Inventories | 97.4 | 93.5 | 90.7 | 95.4 | 81.8 |
| Cash | 124.0 | 123.1 | 109.0 | 147.4 | 116.1 |
| Total Liabilities | 173.1 | 167.9 | 179.3 | 205.5 | 179.3 |
| Trade Payables | 91.7 | 79.1 | 77.7 | 95.7 | 85.1 |
| ST Borrowings | 74.8 | 78.8 | 91.4 | 95.5 | 78.9 |
| LT Borrowings | 6.4 | 7.9 | 8.9 | 11.1 | 12.3 |
| Net Cash Flow | -1.6 | 26.5 | 11.5 | 48.2 | 14.6 |
| Operation | 6.1 | 81.2 | 55.5 | 42.2 | 20.3 |
| Investment | -2.7 | -37.6 | -34.0 | -4.1 | -1.2 |
| Financing | -6.1 | -18.5 | -5.8 | 5.0 | -8.6 |
| EPS | 17.13 | 8.93 | 13.12 | 19.52 | 15.02 |
| NAS | 3.37 | 3.17 | 3.05 | 2.78 | 2.57 |
| Net D/E Ratio | NC | NC | NC | NC | NC |
Despite
slight drop in revenue and PBT YoY, Latitude's FY15Q1's PATAMI improves
14% YoY from RM14.6mil to RM16.6mil due to acquisition of remaining
shares in its Vietnam operation.
If
compared to preceding quarter of FY14Q4, current quarter's result is
much better due to higher orders for better margin products,
strengthening of USD against RM, and lost of 8 days production in
preceding quarter due to Vietnam riot.
Cash
flow in first quarter of FY15 is not so "nice" due to substantial
increased in trade receivables. However, this does not seem to be a
problem from historical point of view.
Balance sheet remain strong with cash inches up while total borrowings are reduced.
As US economy is in the process of recovery, I think this will only benefit Latitude in the near term.
Latitude's
8.5sen dividend for FY14 disappoints most investors I guess, as the
payout ratio is just 15% compared to previous year's 25%.
Hopefully the management will make good use of its cash to expand its business.
Since
early Oct14, Malaysia's famous investor Mr Koon YY has been collecting
Latitude's shares. He currently owns 6.21% of Latitude.
Another
famous investor Fong SL has reduced its stake in Latitude from 1365k to
530k. He might have bought the shares at below RM1 in early 2013 and
has earned 300% in one year from Latitude.
For me, I will not sell at this stage.
I will keep my previous target price of RM4.53 base on FY14 actual EPS and PE of 8x.
At share price of RM3.70, Latitude's actual PE ratio is just 6.5x, compared to Homeritz's PE ratio of 8.2x at 83sen per share.
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