24 January 2013

Bought LPI.

Pump-in new fund into my portfolio, and here's my new investment in 2013.

Bought 2000 shares of LPI at RM13.80, a PE ratio of about 18.

Reasons of investment:
  • a company of Teh Hong Piow, which mean a great management for me.
  • great track-record in terms of profitability, ROE, dividend payout, etc.
  • and most importantly, sustainable growth potential.
a glance at LPI's records:

LPI's revenue and PAT had achieved a CAGR of ~14% in the past five years (2006~2011), and I believe that it can maintain at least 10% CAGR in the next five years.

the average dividend payout ratio of LPI had been around 100% for years, which translate into a 5%~6% net-dividend-yield according to its current level of earnings and share-price.

My expected return in this investment: a 5% DY, plus 10% annual gain from share price, which means a total return of 15% p.a., for the next few years.

The investment in LPI weighted ~18% in my portfolio, about same level as PPB, AirAsia, Harta.

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