For FY2012, HEVEA turned in a Net Profit After Tax (PAT) of $15.24m which translates into an Earning Per Share (EPS) of 16.86 sen. At today's closing of $ 1.24, it would mean a forward PE of 7.35x 

As has been reported, the combined Net PAT for Q1, Q2 and Q3 of 2013 were $12.688m which is already 83.25% of FY2012 earning. Assuming a 10% organic rise in FY2013 Net PAT and a 10% each rise in saving from the plant-wide automation contribution and the more favourable forex rate, my estimate for the FY2013 full year result will be at least a jump of 30+% from FY2012 full year Net PAT. This would mean a potential FY2013 full year Net PAT of close to $20m. 

At a net profit of $20m, the EPS will be 22 sen. At today's closing of $1.24, the PE will then be at 5.63x. Today, the market is already willing to pay a PE of 7.35x based on FY2012 result. By the same token, the market will have no problem paying a PE of 7.35x based on the much improved FY2013 result. The resultant market price for HEVEA will then be $1.617, a potential and a whopping 30.4% upside from today's closing price of $1.24.

And of course, this presumption is based on no surprise impairment or drastic write-down of any sort in the balance sheet. 

Although HEVEA carried an USD-denominated loan of around RM60m still outstanding, the impact from the big drop in RM against the USD over the past few months has a negative bearing on this outstanding loan. However, I strongly believe the advantages of a stronger USD (or rather a weaker RM) far exceed the negative bearing of this USD loan, due to the fact that HEVEA's other revenue streams are in Euro and Reminbi, as well as the JPY. 

All in, a weaker RM in the current forex equilibrium augers well for HEVEA going forward.

As for HEVEA-WB, it closed at 0.61 on 20/2/14. This is still very much out-of-money considering that one would need to fork out RM 1.00 plus the warrant cost of $0.61 i.e. a total of $1.61 just to exchange for a HEVEA share which is trading abundantly at $1.24 a share today. 

Going by the same rational market is paying for the inherent and intrinsic potentials of HEVEA-WB which is only expiring in 2020, I strongly believe the market will have no problem paying, after the potentially glass-smashing FY2013 full year result is announced by next week, for HEVEA-WB at $0.98. 

This is a ballistic 60.6% upside at today's HEVEA-WB closing price of $0.61. 

Go grab them as much as you can!