LTKM-A Counter to Watch?

From the answers given at its AGM today, it seems that LTKM  knows what it is doing besides being a low-cost egg farmer.

The highlights to consider will be the following.

The architecture glass factory will commence operations in early 2011. The market is huge for such glass as more green buildings come on stream. LTKM was fortunate to reduce costs on the project because of the weakening Euro in 2009. It shaved capex by 15%. It will take 3 years at least for LTKM to become a meaningful player  in this sector. For now, they are just expecting it to bring in a much needed diversified revenue stream.

The sand operations will possibly give a better performance. LTKM had some issues with the sand quality in Malacca but that is being overcome. Moreover the loss was because the housing industry in Malcca is not as vibrant as that of the Klang Valley.The second factory line will also be up and running soon and so sand supply will be another positive income source for LTKM.

In terms of dividend pay-out, there was some hoo-ha this morning at the AGM since only RM1 million was added to dividend pay-out. Dividend payout was 3% tax at 25% interim and  final at 7% single tiered.

Given the better prospects in 2010/2011, assuming the market is kind,expect LTKM  to perform.