Hi Raider... frankly speaking, I am not very sure whether the particle board and new RTA lines have started operation. But from what I derived from the 2016 annual report and latest quarterly report, I believe the particleboard has started operation since late 2016 and the new RTA lines are being setup in the progress/started some initial small volumes.


See 2016 annual report page 17:

Our Particle Board plant remained idle since 2013 and is currently being upgraded in preparation for startup end of 2016

On Our Business Strategy
In 2015, the Group embarked on a Cost Rationalisation Strategy that encompasses improvement to operational
efficiency, automation in order to reduce manpower and disposal of non-core / non-performing assets. Hence the
capital expenditure in the Group for 2015 ~2016 is expected to be higher than previous years due to the machineries
improvements and refurbishment being carried out in this period. Capital expenditure will normalize in 2017 after the
completion of our upgrading, automation and relocation projects.
On a longer term Strategy, the Group will be focusing on increasing its production volume for its Ready To Assemble
(RTA) Furniture Products as this will enable us to have a wider range of premium products that is able to fetch a higher
profit margin on its designs and quality.

haha... when everyone is fearful, it is time we should be greedy...

guys.. glad to have you all bring up such good discussion.. keep it up!!

haha... i wonder why there are so many ppl who care so much about short term downtrend movement... if you understand the company's fundamentals well, you will not worry about all these temporary fluctuations..

i would also like to highly applaud the good sharing by R40s, noah, Jon Choivo, etc (too many to name here one by one)...

they are indeed sharing real and good info...

good job guys, forum is a place where we can exchange opinions so we should keep up all this good discussion...

haha... you guys are flattering me.. i am just a super ordinary investor like anyone of you...

in fact, there are also some ppl who do not agree with what I said in other forums...

I am fine with disagreement as everyone has different points of view...

what I can't tolerate is their unethical way of providing manipulated/misleading info in order to promote another share (example: go to Evergreen forum you will find out one particular loser/joker who is doing this)...

everyone there knows his personal agenda yet he is still acting like a clown there.. sometimes i really feel sorry for him... haha

hi guess1978:

to the bank(s)... ^^

the only problem so far that I can see is the company owners are too low profile... and that has not caught too much attention from the public. But it is just a matter of time for it to realize its intrinsic value...

agree with what hornbill and Kai Shien Ks said... a very potential growth share to watch...

Hi Jon, I have sent you an email.

guys... i do agree with what noah said.. i also noticed that they havent used much of the allocations for factory expansion in Vietnam and Kluang.

with this, what the AmSec report mentioned may be more accurate:
Q1 2018 - Vietnam apparel factory to start operation and to contribute revenue/profit
Q2 2018 - Kluang fabric mill to start operation and to contribute revenue/profit

I think it is not so possible for any of these 2 plants to start operation within 2017...

perhaps that is why many investors/speculators do not enter yet and would rather wait till early 2018...

but bear in mind, it may be the best time to enter now coz the price may also hike up to a certain % by early 2018.. Mr market is not stupid... but for those short-term speculators, they do not care.. they just want to go in and out quick and a 5-10% profit is good enough for them so they dont bother entering at a higher price...

but for us value investors, we buy at discounted price vs its EV/EBIT & high ROIC, and just wait... to achieve a more attractive gain then just a 5-10% profit...

so it is up to you... no right or wrong... it's just the different way/methodology of your investment

skliew... go check out Prlexus too... absolutely undervalued gem at its current price... do ur own homework first before buying, haha... dun just listen to what i said...

too bad... he pushed it back up so fast and i am not able to collect some more today...

haha.. Raider sifu must be buying a lot flbhd today until it now goes up to RM1.60... haha

yes, i agree with what Jon Choivo said above.. we welcome constructive discussion... you can also comment on the downsides of this share, no problem.. as long as your comments are fair and sound...

just dun act like that "starperformer" loser... keeps providing misleading and manipulated info in EVERGREEN forum just to pump his HEVEA... that is very mean and unethical...

guys, let me do a deeper dive on the recent results:

Single Quarter:
2017 Q1
- revenue = RM87.523M
- Operating profit = RM9.302M
- Operating profit/revenue = 10.628%

2017 Q2
- revenue = RM108.876M
- operating profit = RM12.989M
- operating profit/revenue = 11.930%

2016 Q2
- revenue = RM99.867M
- operating profit = RM10.821M
- operating profit/revenue = 10.835%

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Cumulative 2 Quarters:
2017 Q1 & Q2
- revenue = RM196.399M
- operating profit = RM22.291M
- operating profit/revenue = 11.350%

Cumulative 2 Quarters:
2016 Q1 & Q2
- revenue = RM204.545M
- operating profit = RM22.340M
- operating profit/revenue = 10.922%

conclusions:
1) 2017 Q2 operating profit margin is higher than 2017 Q1's & 2016 Q2's
2) 2017 Q1 & Q2 (cumulative) operating profit margin is also higher than that in 2016.


And we can see that the 2017 Q1 revenue was dragged down by apparel sales (very likely to Under Armour) but they quickly turnaround and improved in Q2. I am expecting similar good results for Q3 & Q4.

And I only have 2 complaints:
1) Management is not good in writing their reports. The explanation on performance and prospect is too brief and did not provide much info. Example:they just mentioned the revenue is up/down due to increase/decrease of apparel sales but did not provide more details. And they also almost repeat the same thing every quarter (i know many companies do the same)...

2) Dividend - not giving too much dividend. But maybe it is understandable as they reserve cash for expansion in Vietnam, Johor and China.

I hope the Prlexus Management will see my post here (especially on item 1) so that they can improve... i believe if they can improve these 2 items, the share price will move up faster...

GESHEN is indeed another hidden gem...

haha... annoyed1.. i hope these few days you can enjoy yourself and not be annoyed by that loser...

i am quite certain that after his ban period, he will come out to bark again like a mad dxg...

so before that comes, let's enjoy our fresh air and sound-pollution free ambient... haha

Jon, don't forget to check their annual report too (released quite some time ago)... under the prospect column, the management indicated that they expect Prlexus to continue to grow...

i believe that is not a boasting as we can see from the past years' records... Prlexus is indeed growing with the growth of world's population...

just 2 questions to ask urself:

level 1: is the world's population growing?
level 2: if the world's population is growing, is Prlexus competitive enough to maintain/win more market share of the apparel business?

I have the answers.. but I want you to think yourself...

hahaha.... sxckperformer really padan muka... gave too much manipulated info... serve him right by banning his account... well done and good job i3 moderator!

haha.... serve him right... keep on manipulating his words for his own agenda (to promote Hevea)...

all statements given by him are misleading and manipulated...

serve him right!!!

you guys know why that loser sxckperformer has been so quiet recently?

i just checked his status:

Due to repeated abuse posts, this account has been suspended from posting to the i3investor portal until 31/03/2017. Please refer to the Terms and Conditions of Use and Community Standards of this portal.

Skliew... i dun see how u can die buying at this price... haha

Note that:

Enterprise value = Market capitalization + long and short term debt + minority interest - cash & cash equivalents

i am actually using EV/EBIT multiple to calculate the intrinsic value of SUCCESS (instead of using PE) as it can reflect the debt/cash in a more accurate way:

Trailing 4 Q valuations:

Assume EV/EBIT = 10, EV wil be: RM 529960
Market Capitalization (MC) will be: RM 491038

Intrinsic Value RM 4.2933

and bear in mind that this valuation is very conservative.. as I took last 4 quarterly results (where the first 2 quarters are not so good... in Q6, they even made some loss due to process equipment division)....

If you annualized 2017 2 quarters... u will even see much higher valuation...

but again, i wanna play conservatively so i take last 4 quarters...

indeed very well said ragingharrypotato... all the points that you raised up are also the main reasons why i bought it last time...

agree with what you said skliew... just hold and see

haha.... i can't stop laughing now...

haha... skliew... i dun think so... i believe raider sifu is collecting both flbhd and evergreen.... both are definitely undervalued for now... but bear in mind we may need to hold for 1 year or so for some handsome return...

haha... raider sifu is busy collecting flbhd and evergreen.. no time to reply...

hahahahahhahahaha

haha... my average is 90sen to RM1.00... and the song'est part is.. i havent sold a single share yet... cheers guys

agree totally with what Yipman and Jon Choivo said... well said indeed...

guys, i also notice the change of words from "stable" to "challenging due to uncertainties of the global economy"..

but think of this way: the latest quarterly results have improved significantly as compared to last quarter's. And why did the management choose to change these words at this time?

Can it be the directors do not want the share price to go up sharply immediately so that they can have some time to accumulate at low price?

I don't know. I am just curious...

if you know me in person, you will know how my investment performance is...

Mags, how do u know i am not a black or white cat? haha...
how do you know sxckperformer is a white or black cat?
He could be just a rat!!

thanks guys... i am just telling the real facts... EVERGREEN may not be a good choice for those short-term traders/speculators...

just do not forget about one very clear sign: the process equipment section has turnaround from losses so this is a double boost for SUCCESS on top of the increasing sales of its lighting & transformer business

csan... not sure how you calculated that.. anyway, i will still keep to my calculation... it is ok, everyone has difference ways of calculating the intrinsic value...

when Airasia dropped to 70+sen... everyone was selling... but look at its price today...

let me tell you what.. i started accumulating airasia around 90sen to RM1.00 and until today, i have not even sold a single share yet.. coz I know it has not reached its real intrinsic value yet...

moneykj... what you said is absolutely right... but let me ask you one question:

Can you time exactly when the price will start moving up?

Based on TA? if TA is so accurate, no one will ever learn FA...

FA should always come before TA... FA is a necessity, TA is only an option.

You can buy share without using TA, but you can't buy share without looking at FA.

why? I already mentioned above... u can't time the share price performance.. only GOD knows...

but buying into a fundamentally strong share is definitely more secured... coz u can sleep well at nights... it is just a matter of time for it to go up to its real value... 1 year, maybe... but ask yourself, why cant you wait for 1 year for such a fundamentally sound share?

this Cut_losss only has one comment (check his history) so probably he is a new ID created by that loser sxckperformer to create hatred and fear in this share... which is a total nonsense

well said Yong... we know what we are doing.. short-term fluctuation of share price does not mean anything to us if we understand the company well

haha... another loser Cut_losss came out... this is also a short-term speculator who wishes to make a lot of profit within a short period of time....

in this case, please go to Genting Highland to bet.. you do not understand value investing and stop wasting ur time and money here...

we are looking at a relatively longer term for the share to finally reflect its intrinsic value...

i am glad i made the right decision to buy Zhulian during its early recovery stage...

insane monkey thinks that all other human beings are of the same species as him... sad sad...

monkey sxckperformer is a typical monkey who eats too much bananas until he went insane...

idixt.....

i told u already right, they have >160M cash!!!

wxf... still with the massive debt grandma story.. haha