been looking ard for something other than Banking shares. In fact, bank shares are a little too high for now. Lee Metal issues about 6% dividends or more constantly. Certainly better than some blue-chip shares. Noticed this as the volume has been increasing and chart wise it has been moving out of the down channel for a while.
I compiled some info for referencing. Available for CPF investing too.
Profitable since 2005 (that’s as far as I can go from the 2009 annual report)
Despite being in a cyclical industry, Lee Metal has been profitable since 2005, even in 2008/2009.
STRONG free cash flow generation yield of more than 20%!! In the last 3 years
While profit has declined with the tough environment, FCF yield has remained at least 9% in the last 5 years. For FY16, generated 20% free cash flow yield!!!
With its strong cash flow generation- has moved from net debt of S$80m in 2013 to net cash of S$8.5m in just 3 years, and that is while paying S$0.085 of dividends in total from 2013-2015!
Good pay master
Has been constantly paying out dividends. While DPS was cut in 2015, it still translates to 6.8% yield.
Improving outlook?- is the worst over? , coming off a low base?
We note that profit has dropped from S$40m in 2013 to S$13.3m in 2016. (although we note that part of it is due to higher depreciation expense (non-cash)) . 2017 construction demand is expected to be between $28b-35b , similar to 2016 of $27b-34b. + Steel prices have been on the rise…
Valuations: Currently trading at 10.5x PE, not cheap. But given the strong free cash flow generation and good dividend yield and excellent track record of earnings. Believe it is worth a look (esp with the volume in the chart see next few pages)
Daily chart- interesting surge in volume with prices remaining stable between S$0.29-0.295.
Weekly chart
Look at the long monthly tails in 2015- breakout to S$0.355
Dividend Payouts over the last 10 years
Dividend Yield(TTM) = 6.90%
I compiled some info for referencing. Available for CPF investing too.
Profitable since 2005 (that’s as far as I can go from the 2009 annual report)
Despite being in a cyclical industry, Lee Metal has been profitable since 2005, even in 2008/2009.
| S$m |
2005
|
2006
|
2007
|
2008
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
| Sales |
690.3
|
1,112.5
|
1,537.7
|
1,471.4
|
983.9
|
831.5
|
773.6
|
696.2
|
635.9
|
519.3
|
445.4
|
318.6
|
| Net profit |
7.1
|
10.3
|
15.5
|
20.4
|
29.9
|
22.5
|
18.9
|
26.9
|
40.2
|
33.1
|
15.6
|
13.3
|
| EPS |
0.020
|
0.025
|
0.035
|
0.040
|
0.058
|
0.048
|
0.040
|
0.057
|
0.085
|
0.070
|
0.033
|
0.028
|
| DPS |
0.002
|
0.018
|
0.012
|
0.013
|
0.030
|
0.025
|
0.020
|
0.025
|
0.035
|
0.030
|
0.020
|
0.020
|
| payout |
10.2%
|
71.1%
|
34.0%
|
32.6%
|
51.7%
|
52.1%
|
50.1%
|
44.1%
|
41.4%
|
43.0%
|
61.0%
|
71.2%
|
While profit has declined with the tough environment, FCF yield has remained at least 9% in the last 5 years. For FY16, generated 20% free cash flow yield!!!
2012
|
2013
|
2014
|
2015
|
2016
| |
| OCF | 63.5 | 23.7 | 43.6 | 74.1 | 31.1 |
| Capex | (13.0) | (10.7) | (5.5) | (19.9) | (2.8) |
| FCF | 50.5 | 13.0 | 38.1 | 54.3 | 28.3 |
| PBT | 32.0 | 47.9 | 37.6 | 18.4 | 14.8 |
| Dep | 4.9 | 7.0 | 10.1 | 11.8 | 10.7 |
| FCF yield |
36.1%
|
9.3%
|
27.2%
|
38.8%
|
20.2%
|
| FCF/share | 0.106 | 0.027 | 0.080 | 0.114 | 0.060 |
With its strong cash flow generation- has moved from net debt of S$80m in 2013 to net cash of S$8.5m in just 3 years, and that is while paying S$0.085 of dividends in total from 2013-2015!
2012
|
2013
|
2014
|
2015
|
2016
| |
cash
|
25.2
|
50.0
|
46.1
|
68.7
|
69.1
|
fixed deposit
|
48.7
|
65.2
|
42.9
|
27.8
|
28.8
|
debt
|
(139.2)
|
(195.8)
|
(142.5)
|
(105.3)
|
(89.3)
|
net cash
|
(65.2)
|
(80.7)
|
(53.5)
|
(8.9)
|
8.5
|
Good pay master
Has been constantly paying out dividends. While DPS was cut in 2015, it still translates to 6.8% yield.
2012
|
2013
|
2014
|
2015
|
2016
| |
| DPS |
0.0250
|
0.0350
|
0.0300
|
0.0200
|
0.0200
|
| EPS |
0.0567
|
0.0846
|
0.0698
|
0.0328
|
0.0281
|
| payout |
44.1%
|
41.4%
|
43.0%
|
61.0%
|
71.2%
|
| FCF yield |
36.1%
|
9.3%
|
27.2%
|
38.8%
|
20.2%
|
FCF/share
|
0.106
|
0.027
|
0.080
|
0.114
|
0.060
|
| dividend yield |
8.5%
|
11.9%
|
10.2%
|
6.8%
|
6.8%
|
Improving outlook?- is the worst over? , coming off a low base?
We note that profit has dropped from S$40m in 2013 to S$13.3m in 2016. (although we note that part of it is due to higher depreciation expense (non-cash)) . 2017 construction demand is expected to be between $28b-35b , similar to 2016 of $27b-34b. + Steel prices have been on the rise…
Valuations: Currently trading at 10.5x PE, not cheap. But given the strong free cash flow generation and good dividend yield and excellent track record of earnings. Believe it is worth a look (esp with the volume in the chart see next few pages)
Daily chart- interesting surge in volume with prices remaining stable between S$0.29-0.295.
Weekly chart
Look at the long monthly tails in 2015- breakout to S$0.355
Dividend Payouts over the last 10 years
Dividend Yield(TTM) = 6.90%
| Year | Yield | Amount | Ex Date | Pay Date | Particulars |
| 2017 | 3.45% | SGD 0.01 | 2017-04-26 | 2017-05-22 | SGD 0.01 ONE-TIER TAX |
| 2016 | 6.90% | SGD 0.003 | 2016-11-21 | 2016-12-09 | SGD 0.003 ONE-TIER TAX |
| SGD 0.005 | 2016-08-31 | 2016-09-15 | SGD 0.005 ONE-TIER TAX | ||
| SGD 0.002 | 2016-06-08 | 2016-06-24 | SGD 0.002 ONE-TIER TAX | ||
| SGD 0.01 | 2016-04-27 | 2016-05-23 | SGD 0.01 ONE-TIER TAX | ||
| 2015 | 6.90% | SGD 0.003 | 2015-11-23 | 2015-12-11 | SGD 0.003 ONE-TIER TAX |
| SGD 0.005 | 2015-09-01 | 2015-09-16 | SGD 0.005 ONE-TIER TAX | ||
| SGD 0.002 | 2015-06-08 | 2015-06-24 | SGD 0.002 ONE-TIER TAX | ||
| SGD 0.01 | 2015-04-28 | 2015-05-22 | SGD 0.01 ONE-TIER TAX | ||
| 2014 | 12.07% | SGD 0.003 | 2014-11-24 | 2014-12-12 | SGD 0.003 ONE-TIER TAX |
| SGD 0.005 | 2014-09-01 | 2014-09-16 | SGD 0.005 ONE-TIER TAX | ||
| SGD 0.002 | 2014-06-06 | 2014-06-24 | SGD 0.002 ONE-TIER TAX | ||
| SGD 0.01 | 2014-04-28 | 2014-05-23 | SGD 0.01 ONE-TIER TAX | ||
| SGD 0.015 | 2014-04-28 | 2014-05-23 | SGD 0.015 ONE-TIER TAX | ||
| 2013 | 8.62% | SGD 0.003 | 2013-11-25 | 2013-12-13 | SGD 0.003 ONE-TIER TAX |
| SGD 0.005 | 2013-08-30 | 2013-09-16 | SGD 0.005 ONE-TIER TAX | ||
| SGD 0.002 | 2013-06-06 | 2013-06-24 | SGD 0.002 ONE-TIER TAX | ||
| SGD 0.005 | 2013-04-30 | 2013-05-23 | SGD 0.005 ONE-TIER TAX | ||
| SGD 0.01 | 2013-04-30 | 2013-05-23 | SGD 0.01 ONE-TIER TAX | ||
| 2012 | 6.90% | SGD 0.003 | 2012-11-23 | 2012-12-14 | SGD 0.003 ONE-TIER TAX |
| SGD 0.005 | 2012-08-29 | 2012-09-14 | SGD 0.005 ONE-TIER TAX | ||
| SGD 0.002 | 2012-06-05 | 2012-06-22 | SGD 0.002 ONE-TIER TAX | ||
| SGD 0.01 | 2012-05-03 | 2012-05-25 | SGD 0.01 ONE-TIER TAX | ||
| 2011 | 8.62% | SGD 0.003 | 2011-11-29 | 2011-12-16 | SGD 0.003 ONE-TIER TAX |
| SGD 0.005 | 2011-08-29 | 2011-09-16 | SGD 0.005 ONE-TIER TAX | ||
| SGD 0.002 | 2011-06-07 | 2011-06-24 | SGD 0.002 ONE-TIER TAX | ||
| SGD 0.01 | 2011-05-03 | 2011-05-27 | SGD 0.01 ONE-TIER TAX | ||
| SGD 0.005 | 2011-05-03 | 2011-05-27 | SGD 0.005 ONE-TIER TAX | ||
| 2010 | 6.90% | SGD 0.003 | 2010-11-29 | 2010-12-17 | THIRD SGD 0.003 ONE-TIER TAX |
| SGD 0.005 | 2010-08-30 | 2010-09-17 | SGD 0.005 ONE-TIER TAX | ||
| SGD 0.002 | 2010-06-14 | 2010-06-25 | FIRST INTERIM SGD 0.002 ONE-TIER TAX | ||
| SGD 0.01 | 2010-05-03 | 2010-05-27 | SGD 0.01 ONE-TIER TAX | ||
| 2009 | 6.90% | SGD 0.003 | 2009-11-26 | 2009-12-18 | THIRD INTERIM SGD 0.003 ONE-TIER TAX |
| SGD 0.005 | 2009-08-21 | 2009-09-11 | SGD 0.005 ONE-TIER TAX | ||
| SGD 0.002 | 2009-06-08 | 2009-06-25 | SGD 0.002 ONE-TIER TAX | ||
| SGD 0.01 | 2009-04-30 | 2009-05-28 | SGD 0.01 ONE-TIER TAX | ||
| 2008 | 4.48% | SGD 0.003 | 2008-08-21 | 2008-09-12 | SGD 0.003 ONE-TIER TAX |
| - | 2008-08-11 | - | 1 WT FOR 5 SH OFFER OF 1 FOR 5 @ SGD 0.05 | ||
| SGD 0.01 | 2008-04-25 | 2008-05-15 | SGD 0.01 ONE-TIER TAX | ||
| 2007 | 3.45% | SGD 0.002 | 2007-08-20 | 2007-09-05 | (LST INTERIM) SGD 0.002 LESS TAX |
| SGD 0.008 | 2007-04-27 | 2007-05-16 | SGD 0.008 LESS TAX |
