Friday, March 24, 2006

HTL International Review

A stock in my portfolio, a post extracted from my personal blog Thought of just sharing with you.

HTL internatonal

Company Information:
The Group is one of Singapore's largest manufacturers of leather upholstered furniture. More than 70 percent of its furniture products are exported. It was founded in 1976 by the Phua brothers as a small furniture manufacturer. In 1981, an agreement was made with G Laauser GmbH & Co, a leading German furniture manufacturer, to produce quality furniture for export. With this successful collaboration, HTL was able to tap on the design and advanced production techniques of Laauser to market its furniture internationally. The Company has entered into an agreement with Musterring AG, an internationally-reputed name in furniture and furnishings to manufacture and market furniture under the prestigious Musterring label for major cities around the world. HTL has also secured the right to offer sub-licences to retailers to distribute Musterring furniture to a number of countries worldwide.Its manufacturing facilities today include a 14,000 sq m plant in Kulai, West Malaysia, and 21,000 sq m plant in Kunshan, China, and a 44,000 sq m plant cum warehouse at Jurong, Singapore. It has sales offices in Singapore, Malaysia, China, Taiwan, Japan, Hong Kong, UK and USA. Its immediate and ultimate holding company is BEM Hldgs Pte Ltd, incorporated in Singapore.
- From

Stock split:
10 Dec 2001 - 1 for 2
19 May 2004 - 1 for 4
25 Aprill 2006 - 1 for 4

That is to say 1000 shares (1 lot) bought before 10 Dec 2001 will give you 3125 shares (3.125 lot) after 25 April 2006

Dividend yields:
Increasing dividend yields from
2003: 2.6% 2004: 2.7% 2005: 3.3%

P/E ratio:

Historical growth rate:
2003-2004: 42% y-o-y
2004-2005: 30% y-o-y

If you have bought the 1000 shares in 2001 at a mean price of 28 cents, it will cause you around $280. Since 2001 till now, it went through 3 stock splits that causes 1000 share to become 3125 shares. Each share is currently priced at $1.51, that means the 1000 share bought in 2001 would have cost $4718.75 now, almost 17 fold increase. With dividend payout at 4.85 cents per share (which is about 3.3%), it converts to a yield of 54.1% [(4.85 / 28) x 3.125] of the price you pay for the stock in 2001.

This is an excellent stock to buy if it still promises the results achieved in the past. With consistent growth (increasing stock price) and increasing dividend yield, the dividend yield with respect to the price you pay for the stock will be very substantial in time to come, as shown in the example.

Recently HTL International has acquired Domicil Moebel GmbH, a German home furnishing business unit. In the year 2007, HTL main focus is to develop a megastore concept in Germany from the acquired Domicil.


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