KUALA LUMPUR, Oct 30 — The share price of Lii Hen Industries Bhd fell four sen to RM4.04 after the fire incident at its wholly-owned subsidiary’s second premises last Friday.

At 11am, 1.35 million shares were transacted.

However, Hong Leong Investment Bank in a note, opined that Lii Hen would be able to manage this fire incident with minimal struggle.

"Thus, we reiterate the "buy” call on the company and maintain the target price of RM5.04 per unit,” it added.

Hong Leong said it still liked Lii Hen due to the company’s strong balance sheet (net cash per share 53.8 sen as at 30 June 17), high dividend payout (dividend yield of 6.4 per cent) and ongoing efforts at adopting effective cost management.

"Moreover, we expect stable growth in the global furniture market due to the growing real estate industry and increasing number of global retail stores,” it added.

The incident affected four out of eight blocks of production lines at the subsidiary, Favourites Design Sdn Bhd. It will also affect between 5-10 per cent of the company’s total production.

In 2014, a similar fire incident happened at Lii Hen’s main factory, but operations were back to normal within three days. — Bernama