Lii Hen Industries Bhd (KLSE:LIIHEN) - Share price, News & Analysis

LIIHEN fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	1/6
Financial Health	6/6
Dividends	3/6

LIIHEN Stock Overview

Lii Hen Industries Bhd, an investment holding company, manufactures and sells furniture.

Rewards

Price-To-Earnings ratio (14.5x) is below the MY market (15x)

Earnings are forecast to grow 33.32% per year

Risk Analysis

Dividend of 2.63% is not well covered by earnings

Profit margins (5%) are lower than last year (8.2%)

Lii Hen Industries Bhd Competitors

Sern Kou Resources Berhad

KLSE:SERNKOU

RM627.4m

Poh Huat Resources Holdings Berhad

KLSE:POHUAT

RM397.5m

Latitude Tree Holdings Berhad

KLSE:LATITUD

RM285.6m

Homeritz Corporation Berhad

KLSE:HOMERIZ

RM228.7m

Price History & Performance

Summary of all time highs, changes and price drops for Lii Hen Industries Bhd
Historical stock prices
Current Share Price	RM3.04
52 Week High	RM3.35
52 Week Low	RM2.70
Beta	0.72
1 Month Change	-1.30%
3 Month Change	1.33%
1 Year Change	-7.32%
3 Year Change	4.83%
5 Year Change	-5.00%
Change since IPO	755.01%

Shareholder Returns

	LIIHEN	MY Consumer Durables	MY Market
7D	0.3%	-0.4%	-1.3%
1Y	-7.3%	-6.3%	-4.1%

Return vs Industry: LIIHEN underperformed the MY Consumer Durables industry which returned -6.3% over the past year.

Return vs Market: LIIHEN underperformed the MY Market which returned -4.1% over the past year.

Price Volatility

Is LIIHEN's price volatile compared to industry and market?
LIIHEN volatility
LIIHEN Average Weekly Movement	3.3%
Consumer Durables Industry Average Movement	5.1%
Market Average Movement	5.8%
10% most volatile stocks in MY Market	11.7%
10% least volatile stocks in MY Market	3.0%

Stable Share Price: LIIHEN is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: LIIHEN's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	2,866	Yong Chua	https://liihenfurniture.com

Lii Hen Industries Bhd, an investment holding company, manufactures and sells furniture. The company operates through Furniture Manufacturing, Plantation, and Other segments. It provides office and residential furniture, as well as furniture components to furniture importers, wholesalers, and retailers.

Lii Hen Industries Bhd Fundamentals Summary

How do Lii Hen Industries Bhd's earnings and revenue compare to its market cap?
LIIHEN fundamental statistics
Market Cap	RM547.20m
Earnings (TTM)	RM37.77m
Revenue (TTM)	RM749.27m

14.5x

P/E Ratio

0.7x

P/S Ratio

Is LIIHEN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LIIHEN income statement (TTM)
Revenue	RM0
Cost of Revenue	RM0
Gross Profit	RM0
Other Expenses	RM0
Earnings	RM0

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.21
Gross Margin	15.06%
Net Profit Margin	5.04%
Debt/Equity Ratio	5.9%

How did LIIHEN perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

38%

Payout Ratio

Valuation

Is Lii Hen Industries Bhd undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

14.49x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: LIIHEN (MYR3.04) is trading above our estimate of fair value (MYR1.94)

Significantly Below Fair Value: LIIHEN is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: LIIHEN is good value based on its Price-To-Earnings Ratio (14.5x) compared to the MY Consumer Durables industry average (17.9x).

PE vs Market: LIIHEN is good value based on its Price-To-Earnings Ratio (14.5x) compared to the MY market (15x).

Price to Earnings Growth Ratio

PEG Ratio: LIIHEN is good value based on its PEG Ratio (0.4x)

Price to Book Ratio

PB vs Industry: LIIHEN is overvalued based on its Price-To-Book Ratio (1.2x) compared to the MY Consumer Durables industry average (1x).

Future Growth

How is Lii Hen Industries Bhd forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

33.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LIIHEN's forecast earnings growth (33.3% per year) is above the savings rate (3.6%).

Earnings vs Market: LIIHEN's earnings (33.3% per year) are forecast to grow faster than the MY market (10.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LIIHEN's revenue (14.4% per year) is forecast to grow faster than the MY market (6.4% per year).

High Growth Revenue: LIIHEN's revenue (14.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if LIIHEN's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Lii Hen Industries Bhd performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-2.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LIIHEN has high quality earnings.

Growing Profit Margin: LIIHEN's current net profit margins (5%) are lower than last year (8.2%).

Past Earnings Growth Analysis

Earnings Trend: LIIHEN's earnings have declined by 2.8% per year over the past 5 years.

Accelerating Growth: LIIHEN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LIIHEN had negative earnings growth (-50.6%) over the past year, making it difficult to compare to the Consumer Durables industry average (-11.3%).

Return on Equity

High ROE: LIIHEN's Return on Equity (9.1%) is considered low.

Financial Health

How is Lii Hen Industries Bhd's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: LIIHEN's short term assets (MYR380.2M) exceed its short term liabilities (MYR126.5M).

Long Term Liabilities: LIIHEN's short term assets (MYR380.2M) exceed its long term liabilities (MYR30.9M).

Debt to Equity History and Analysis

Debt Level: LIIHEN has more cash than its total debt.

Reducing Debt: LIIHEN's debt to equity ratio has reduced from 14.1% to 5.9% over the past 5 years.

Debt Coverage: LIIHEN's debt is well covered by operating cash flow (120.5%).

Interest Coverage: LIIHEN earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Lii Hen Industries Bhd current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.63%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LIIHEN's dividend (2.63%) is higher than the bottom 25% of dividend payers in the MY market (1.9%).

High Dividend: LIIHEN's dividend (2.63%) is low compared to the top 25% of dividend payers in the MY market (4.66%).

Stability and Growth of Payments

Stable Dividend: LIIHEN's dividend payments have been volatile in the past 10 years.

Growing Dividend: LIIHEN's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (38.1%), LIIHEN's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (173.4%), LIIHEN's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

15.8yrs

Average management tenure

CEO

Yong Chua (54 yo)

15.75yrs

Tenure

RM5,000

Compensation

Mr. Chua Yong Haup has been Managing Director of Lii Hen Industries Bhd since August 26, 2006 and has been Executive Director since December 30, 1999. Mr. Chua is responsible for the marketing strategies o...

CEO Compensation Analysis

Compensation vs Market: Yong's total compensation ($USD1.14K) is below average for companies of similar size in the MY market ($USD113.31K).

Compensation vs Earnings: Yong's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: LIIHEN's management team is seasoned and experienced (15.8 years average tenure).

Board Members

Experienced Board: LIIHEN's board of directors are seasoned and experienced ( 15.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/27 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31