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(11-10-2023, 09:25 PM)weijian Wrote: hi ksir,
Tracking back HLS's thread, the company had its heydays back in the mid 2010s. However towards the end of 2010s decade, its GPM seems to have reduced from ~20-30% to 10% now. What has materially changed?
The heydays of mid 2010s crescendo-ed at end FY16, when it declared a 10cent special dividend (~30% yield when including the normal final dividend of 2.5cent, based on share price back then). Back in FY16, it had cash/securities (205mil + 30mil) = 235mil, which is almost similar to its equity (245mil) and much much in excess of working capital requirements of 13mil (WIP/receivables/development properties - payables/billings = 8+72+13-50-30 = 13mil).
Looking at 1H23, it has cash/securities 155mil, about 63% of equity and working capital requirements ~60mil...While it didn't look as complying as FY16, but HLS still seems to have a lot of "excess" cash. What would actually warrant the Chua Family to pay out a bumper dividend again?
Hi Weijian,
It I were the Chua Family, I'd just give it a (perhaps NOT too low) ball offer and keep the cash for myself
It's no wonder that there are so many low balls in Spore Exchange universe, it's not super hard to find unloved and undervalued companies with good long term earning & dividend records.
Also I'd argue that the CASH is now worth more than it was back then in 2016.
Mainly because it earns a lot more interest without much risk.
My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".
"The flowers that bloom in the spring, have nothing to do with the case".