Hafary

solid dividend!! For sure the stock has to rise from 21 cents.

Note that the 45% China associate Hunan Cappuccino Construction Materials (HCCM) which manufactures tiles lost a tidy sum of $.

Surprisingly, the 49% Vietnam associate and stoneworks JV were profitable.


1. Share of loss of associate, HCCM, from July 2012 to June 2013, amounting to S$1.8 million; partially offset by

2. Share of profit of associate, Viet Ceramics International Joint Stock Company, from October 2012 to June 2013, amounting to S$42,000; and

3. Share of profit of joint venture company, Melmer Stoneworks Pte. Ltd., from July 2012 to June 2013, amounting to S$0.1 million.

If you are looking at dividends, Hafary is giving 2.5 cents final dividend. The shares trade at 23.5 cents, so the yield is >10%. However, I doubt this can be repeated because the high yield now comes from the one-off Aljuneid property sale gain.

In any case, here is a link to The Edge article on Hafary for more general understanding.

www.hafary.com.sg/user_data/media/33.pdf

AGM 25 Oct. Dividend expected to be announced after AGM. Expect ex-date to be mid Nov and payment End of Nov.

I went to Hafary showroom at Eunos Ave 3 on a Saturday morning. Quite many ppl lookin at tiles and the phones at the front counter keep ringing non stop, the 4 front counter staff were busy answering calls.. ==> Good sign

The high dividend this year will not be repeated unless they sell their properties and do a lease back.

But the willingness of the management to pay high dividend means we do expect good dividend to be paid out as it is expanding and profits will be expected to rise.

Are you going to the AGM? Tell us what he says abt sustaining the dividend. can?

just back from AGM:

Main points:
1) 2.5 cents dividend approved

2) Next 2 to 3 years, business will be good as volume increases due to HDB project accelerating, current HDB forms around 20% of total revenue

3) Inventory high due to HDB projects, so need high inventory

4) Sunget Kadut project with Sitra basically serves as warehouse and co-operation with Sitra to produce marble.

5) CEO affirms position as no 1. tiles provider in Singapore. 30% of market

6) 1000+ loyal customers, contractors and designers. So venturing into other product outside of tiles to tap on these 1000+ loyal customers.

7) Dividend will depend on profit, 20-30% of profit.

The food I quite disappointed.. hhahaha.