Latitude reaching new high

Furniture Stocks

There are quite a number of furniture manufacturers listed in Bursa Malaysia. They are:

1. Latitude Tree
2. Homeritz
3. Lii Hen
4. Poh Huat
5. Hevea
6. Eurospan
7. Heng Huat
8. Tafi

Both Latitude and Lii Hen concentrate on home furniture but Poh Huat manufactures both home & office furniture.

Homeritz is different from all 6 others as it designs and manufactures upholstered home furniture such as leather and fabric-based sofas, dining chairs, bed frames etc. It also has its own brand Eritz since 2009.

Heng Huat engages in the manufacture and sale of mattresses and related products; and manufacture and trade of coconut and oil palm biomass materials in Malaysia. It offers fiber and other mattresses and bedding accessories, including mattresses, divans, and headboards under the Fibre Star brand name; and cushions, pillows, and bolsters under the Xiong Mao brand name to furniture retailers. 

Eurospan

Hevea

Tafi

Performance

Table 1: Share price increase of some furniture companies

Company	Homeriz	Lii Hen	Latitude	Hevea	Poh Huat
Price 8/12/13	0.575	1.65	1.81	0.950	0.910
20/12/2014	0.805	2.72	3.58	1.60	1.31
Gain	40%	65%	98%	68%	44%

Chart	Stock Name	Last	Change	Volume
	HOMERIZ	0.955	+0.03 (3.24%)	1,556,800
	LIIHEN	2.98	+0.11 (3.83%)	110,900
	LATITUD	3.97	+0.10 (2.58%)	134,800
	HEVEA	1.75	+0.02 (1.16%)	144,400
	POHUAT	1.61	+0.04 (2.55%)	324,400

LATITUDE TREE HOLDINGS BERHAD ("LTHB" OR THE "COMPANY") - Riots in Vietnam arising from Vietnam and China dispute over Paracel Islands in South China Sea

Reference is made to the news appearing on local and international newspapers on 13 May 2013 which reported on the riots in Vietnam arising from the Vietnam and China dispute over the arrival of the deep-sea oil rig close to the Paracel Islands in South China Sea. The Board of Directors of LTHB wish to announce that the riot has spilled over into the Vietnam Singapore Industrial Park (“VSIP”) where the Company’s subsidiary, Latitude Tree Vietnam Joint Stock Company (“LTV”) is annexed to it. Rioters have entered LTV’s premise/factory at afternoon on Tuesday, 13 May 2014. The Company’s other subsidiary, RK Resources Co Ltd, is not affected as at to-date.

The main office building of LTV has been vandalised, ransacked and looted by the rioters. Some important data, permits, licenses and documents were destroyed or burnt. The rioters attempted to burn LTV’s factory but the fire was put out by LTV’s workers. At present, the production facilities were not affected although all factory workers were forced to go on strike by the rioters. LTV has temporarily stopped its factory operations since yesterday afternoon until further notice. Due to the on-going riot situation, LTHB is unable to ascertain when the production can be resumed. However, LTHB is monitoring the situation closely with the assistance of the Malaysian Consulate officials at Ho Chi Minh City. For safety reasons, LTHB does not allow the Factory Manager of LTV and his team to enter the factory at present. As such, LTHB is unable to ascertain the damages and its financial impact thereon.

All factory buildings, machinery, inventories, office equipment, furniture fittings and ancillary installations are insured against the risk of rioting. LTV has reported the incident to the insurance company. At present, the insurance company and the adjusters are unable to assess the extent and quantum of damages as the rioting is still on going.

Further announcements will be made as and when there are material changes to the situation.

This announcement is dated 14 May 2014.

Latitude Hits RM3.00

Latitude

Latitude Tree Holdings Berhad is engaged in investment holding and provision of management services. Through its subsidiaries, the Company specializes in the manufacturing and sale of wooden furniture and components, particularly rubber-wood furniture. Its products are divided into three groups: bedroom collection sets, which include beds, nightstands, chests, armoires and wardrobes; dining collection sets, which include tables, chairs, buffets, hutches, curious, sideboards and servers, and living room collection sets, which include sofas, sofa tables, occasional tables, coffee tables and cabinets and others. 

Its manufacturing activities are operated from its three factories in Malaysia, two factories in Vietnam and one factory in Thailand. The total floor area of the six manufacturing plants is approximately 7.8 million square feet. The Company distributes its products within the domestic market and to overseas, including Vietnam, Thailand, Singapore and other countries.

Current Price (23/04/14)  RM2.64

Current P/E Ratio (ttm) 5.8615

Estimated P/E(-) -

Relative P/E vs. FBMKLCI 0.3320

Earnings Per Share (ttm) 0.4504

Est. EPS -

Est. PEG Ratio -

Market Cap (M MYR) 256.63

Shares Outstanding (M) 97.21

30 Day Average Volume 318,023

Price/Book (mrq) 0.9393

Price/Sale (ttm) -

Dividend Indicated Gross Yield 2.39%

Cash Dividend (MYR) 0.0630

Dividend Ex-Date 12/27/2013

5 Year Dividend Growth 18.76%

Key Executives for Latitude Tree Holdings BHD (LATI)

Lin Chen Jui-Fen

Deputy Chairman

Lin Chin-Hung

Managing Director

Lin Tzu-Lang

Executive Director

Tai Yit Chan

Joint Secretary

Yeoh Joe Son

Joint Secretary

Tan Ai Ning

Joint Secretary

CONTACT INFORMATION

Latitude Tree Holdings BHD

Lot 6.05 Level 6 KPMG Tower

8 First Avenue Bandar Utama PJ

Selangor Darul Ehsan, 47800

Malaysia

Phone: 60-3-7720-1188

Fax: 60-3-7720-1111

www.lattree.com