LVT bullet points.
From Paul A. Renaud. www.thaistocks.com
Thailand. April 20, 2009
L.V. Technology Public Company Limited . (LVT 1.65, listed on the MAI stock exchange in Bangkok, Thailand.) LVT business operates as an engineering services specializing in the cement industry, by designing and applying a new concept for grinding of raw materials and the flow of gas in order to improve production efficiency as well as to reduce the electricity power consumption and to improve profitability. LVT is very well known/respected in the cement industry.
- Based on trailing p/e, LVT is the most undervalued listed company trading on the Thai stock exchange. (Its p/e is 2.3 vs. the average p/e here of around 6).
- Based on their last dividend announcement and LVT’s current stock price it is one of the highest dividend yielding company on the Thai stock exchange. (13.5%).
- The only company listed in Thailand which is a “pure green” company, i.e. a leader of energy saving devices/engineering for the global cement industry. LVT is a “pure play” in the upcoming boom green industries.
- No debt or long term loans, and some 100-200 mill. Baht of cash on hand, or 0.50 to 0.75 Baht per share. There 321 mill. shares outstanding, no other diluting securities or warrants outstanding. However the company pre-paid about 100 mill. Baht in machinery for a large order in Iran.
- Over the past year increased the number of employees by 50% (from 98 to 138). Some of the best cement engineers in the Asia come from Siam Cement which LVT has attracted much talent from.
- While located in Thailand, its customers come from around the world. Namely the highest growth areas of Brazil, India and China. LVT’s 49% owned Indian associate company will likely one day soon be listed on the Mumbai, India stock exchange potentially giving LVT a huge windfall profit.
- LVT has some 2 Billion Baht (58 mill US$) of backlog on hand and global cement companies view LVT’s energy saving solutions/engineering as maintenance, not capital budgets with these having been reduced due to the world financial crisis.
- LVT has client relations with a true global network. More then 700 references in 60 countries around the world. Since 1999 LVT has executed nearly 600 orders ranging from turnkey projects to upgrades. Over 100 were ball mill upgrades which the company has successfully carried out. The pay-back period of capital invested for such upgrades for its customers are barely 1-2 years.
- LVT’s vision statement is: “To be the worldwide leading and customized technology provider for cement and related industries.” I think they are.
- LVT has associate companies around the world: LV Europe S.A. (France) at 92%, LVT Technology (Tianjin, China) at 50%*, LV Latino (Brazil) at 50%, LNV (India) at 49%. Indian associate company extremely profitable and well run.
- Founded in 1996 by Hans Jorgen Nielsen, a veteran Danish engineer and businessman who has more than 20 years of experience in developing technology involved with material sorting machines. Mr. Nielsen is a visionary entrepreneur.
- Insiders have been buying more shares this year. All outstanding warrants were converted into new shares in February ’09, and the key insiders converted them all. This resulted in about 1/3 more shares outstanding to now 321 mill. shares outstanding.
* In March 2006, LVT entered into the People Republic of China by forming strategic partnership with Fu Yang International Co., Ltd. and co-established LV Technology Engineering (Tianjin) Co., Ltd. to provide engineering services to the Chinese cement market similar to those of LVT. This company has a registered capital US$ 120,000 of which LVT holds 50% of the interest.
LVT’s web site is at:
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We have lots of other research on LVT and other such interesting comapnies, published for members at our web site.
Paul A. Renaud.
