Harvey Norman Holdings Ltd. (ASX: HVN) is a company that specialises in integrated retail, franchise, property and digital enterprise. Harvey Norman has a market capitalisation of A$5.3 billion.
What are the key features of the 2019 AGM?
- Reported profit before tax for FY19 is $574 million, up 8.4%.
- Net assets of $3.2 billion, up 8.8% from the previous year.
- Earnings per share is 34.70 cents, up 4.5%.
- Dividend yield is 8.1% (based on the Harvey Norman share price of $4.07 and a dividend of 33 cents).
Harvey Norman’s management notes when compared to Aggregated Sales for the period 1 July 2018 to 31 October 2018, the increase was 2.0%. Comparable Aggregated Sales for the period 1 July 2019 to 31 October 2019 when compared to the period 1 July 2018 to 31 October 2018, increased by 1.7%.
An overall all summary of aggregated sales for this period is shown below:
An important point for growth of Harvey Norman is the company’s expansion strategy into Malaysia. Harvey Norman management note that Malaysia’s economic growth has been on an upward trajectory since 2010 and that Malaysia is poised to enter the global middle class of developed nations by 2024. A total of 6 stores in Malaysia will be opening in the 2019 calendar year.
What is the market reaction?
The initial market reaction to Harvey Norman AGM was slightly negative. The share price is currently trading at $4.30. Harvey Norman has a forward P/E ratio in the low-teens and an annual dividend yield of 7.6%.
This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
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