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Overview
Financial Highlight
HeadlinesBusiness Background Lee Swee Kiat Group Bhd operates in the Mattresses and bedsprings sector in Malaysia. The company is engaged in the manufacturing, trading, and distribution of mattresses, bedding accessories, laminated foam, polyurethane foam, natural latex foam and other related products. LSK operates a retail chain store under Brand IBG that promotes Ergonomic beddings and furniture. It also engages in investment holding activity.
  thesteward Tomolo I might tp some swap (fm 50 sen ) n add tambun n lionposim . Comgrars and all the best ! 15/12/2020 5:04 AM thundery If bank told you target is 1.9 means actual target is half of that, means need to sell now. 17/12/2020 9:41 AM  StockHunters lame statement by thundery. no such thing. So CIMB target 1.6, now already 95 sen, double wor? 17/12/2020 7:34 PM SEE_Research THIS STOCK IS TOP SMALL CAP PICK FOR 2021 (106% POTENTIAL UPSIDE) Author: Chongkh888 Publish date: Thu, 17 Dec 2020, 10:35 PM Lee Swee Kiat is one of the top 3 small cap picks with the highest upside (+106%), according to CGS-CIMB Research latest strategy report. Summary LSK is Malaysia’s largest manufacturer of natural bedding products, with annual production capacity of 6,000 tonnes. LSK should record stronger quarters ahead, driven by higher semi-foam demand from export markets and maiden contribution from JV with Cuckoo. LSK is targeting at least RM100m (LSK’s portion) from the JV in the next 3 years. Do note LSK existing business recorded RM100m sales last year. Reiterate ADD with TP of RM1.60 (12.9x CY22F P/E, a 30% discount to our consumer discretionary sector CY22F target P/E of 18.4x - CGS-CIMB Research 18/12/2020 4:26 AM mooninvestor168 correction before the next push, wait US market recover more :) collected more today. 01/03/2021 1:44 PM Begineer any news on the cuckoo mattress collaboration? when will they launch the product? 12/03/2021 5:10 PM Rwkl From the cover of the AR, is the subject on the mattress comes along with the lease? 25/04/2021 12:03 AM  Shadow Fiend AGM highlights: 1) domestic sales are very encouraging but cannot confirm the effect of MCO 3.0 which may affect it temporarily, 2) export sales are also good but due to rising of ocean freight cost, some customers may delay the import for awhile, 3) sales derived from Cuckoo just started at end of March 2021 and target sale is 10k-14k mattresses in 2021, 4) even with rising of raw material costs, leesk able to pass it to customers, 5) acquired automation machines in 2020 which can increase capacity but pending foreign technician to fly over for commissioning, 6) bought 8 units of dormitories for foreign workers to comply ESG, 7) production is running at full capacity but MCO 3.0 limited 60% of workers may affect it in short term. 24/05/2021 10:56 AM Superb99 Most likely yes, keep breaking support and so far no sigh of rebound...this counter is very quiet, not many people playing 04/06/2021 9:40 PM Superb99 i cut half d, so far the price is still not supported plus poor market sentiment...most likely it will drop further....just my personal view 16/06/2021 5:23 PM rikki On track for record earnings in 2022F - Target Price RM1.84 ■ We view LSK as a proxy to the recovery in consumer spending, backed by: i) higher mattress sales, ii) price hikes, and iii) higher economies of scale. ■ We expect LSK’s collaboration with Cuckoo Malaysia to propel its profitability to new heights going forward, with more marketing activities expected. ■ LSK’s valuation is undemanding at 5.5x CY23 P/E, an 81.6% discount to our discretionary consumer sector’s mean CY23 P/E. Reiterate Add. Witnessing a rebound in local sales since 4Q21 Since the gradual lifting of lockdown measures starting Oct 21, LSK has been witnessing a strong rebound in sales in the local market. This is in tandem with the reopening of its retail outlets, as well as more large-scale furniture fairs and exhibitions being held. On top of that, we gather that LSK has seen a surge in mattress sales in areas affected by the recent floods. Supported by the price increases effective 1H21, we expect the higher sales to translate into margin expansion for the company from 4Q21 onwards. Sales of A-series mattress in 2021 affected by lockdowns While LSK aimed to sell 12,000 A-series mattresses (sold under LSK‘s collaboration with Cuckoo) in 2021F, sales likely fell short (estimated to reach only 7,000, which is in line with our estimates) due to the impact of various lockdowns throughout 2021. Nevertheless, we take comfort that sales in May 21 (prior to the implementation of a full movement control order [FMCO] in Jun-Sep 2021) was an encouraging 1.5k units. Still optimistic on prospects of collaboration with Cuckoo We remain optimistic about LSK’s collaboration with Cuckoo International. With the lifting of lockdown measures and supported by better consumer sentiment and more marketing activities, LSK is confident of achieving sales of 20,000 units (+185% yoy) in FY22F. In our view, the rental model (with low initial purchase cost) offered by Cuckoo-LSK when purchasing A-series mattresses could also be an attractive proposition to buyers amid the current subdued consumer sentiment. Note that LSK expects contributions from its collaboration with Cuckoo to contribute at least 20% of its turnover from FY22F onwards. Net cash position will support attractive dividend yields in FY23-24F As at end-3Q21, LSK has a net cash position of RM5.6m. With no major capex planned in FY22-23F (flat at RM3.5m for FY21-23F), we expect its robust balance sheet to support its dividend payouts (45% for FY21-23F). With an expected rebound in earnings, mainly in FY22-23F, this could translate into solid dividend yields of 2.9-8.3% for FY21-23F. Reiterate our Add call We make no changes to our FY22-24F EPS forecasts. We also keep our Add call and TP of RM1.84, based on 13x CY23 P/E, in line with its 5-year mean. We continue to like LSK for its: i) defensive business (resilient demand for beds); ii) attractive valuation (5.5x CY23F P/E); and iii) strong fundamentals (high ROE and net cash position). Re-rating catalyst: a spike in sales volume and higher-than-expected sales from its collaboration with Cuckoo. CGSCIMB Research January 12, 2022 17/02/2022 11:15 AM Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥ P/E Ratio (TTM) 16.20(04/07/22) EPS (TTM) RM0.05 Market Cap RM129.40 M Shares Outstanding N/A Public Float 155.91 M Revenues and profits have been up and down during the last 5 years. Given this lack-lustre consistent growth, it is not a company that for holding for the long term. The share price has traded over a range and this might be of interest for short term players. 07/04/2022 4:42 PM  | |
