09 August 2014

Lee Metal Quarterly Report Performance Summary - August 2014

Performance Review





My Notes

1H2014 EPS 4.92 cents
NTA 35.88 cents

As 1H2014 included S$11.2M net profit from property development (kind of one off item), I believe that the result for 2H2014 would be weaker than 1H2014. As the expected annualized PE is below 7.0X with good dividend yield, I believe it is still reasonable for investors to hold for dividend yield. The risk now is that the worsening result from fabrication and manufacturing of business due to intense competition among the competitors.

As PB ratio now is more than 1.0X, to me it is not considered as cheap. But it always depends on your required return rate (which inclusive of dividend yield) to make your on decision.


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