Based on numerous previous quarterly result reporting dates, my guess is the Q2 Result should be announced on 26th or 27th August 2014

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!

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.

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.

Based on the analysis I am presently working on (which I will post upon the release of Q4 and the Full Year Result announcement on 25/2/14), it won't be a surprise to see HEVEA at $1.55 and HEVEA-WB at $0.90 by 7/3/2014.

4) Bullish Outlook : Well, it must be said that with the strengthening of USD, it augurs well for exporters like POHUAT and HEVEA. One man's gain is another man's loss, the stronger USD translates into a weaker RM, consequently a stronger Euro, JPY and Renminbi which benefitted HEVEA.

Due to the nature of small furnitures manufactured by HEVEA, it is easier, cheaper and much more possible to adopt manufacturing plant automations than large furnitures which POHUAT makes. In this respect, HEVEA has already embarked on the automation to replace human labours in its Gemas plant 2 years ago. The result is dashing with a >30% cut in foreign labours requirements. Plans are afoot to gradually identify processes which can be automated without the need of human.

Combining point 3 above and the "automation theme" outlook, my money is with HEVEA in a long term horizons, without any doubt.

X
JhoLow 3) Good Future Prospect : POHUAT has a direct nemesis in the name of LIIHEN which makes identical products and compete in the same USA market which accounts for more than 90+% of their revenue. However, both are OEM manufacturer without establishing a brand name of its own. HEVEA on the other hand has a more diverse clienteles with almost equal footprints in Japan, China, the Middle East, Europe and the USA. I will spare to reason out the benefits of a diverse clients base here, for the plus points far exceed the negative points. On top of this, HEVEA has already embarked on its own branding a few years back and the same has been gaining momentum in Japan and China. To add another feather to the cap, HEVEA is now the largest PCB manufacturer in Asia with a German TUV technology and it's products has been widely recognized to be of superior quality, judging by the "Sole Supplier" status by AEON Japan. Further, the DIY and versatile natures of PCB small furnitures are more nimble than the large furniture business model undertaken by POHUAT. So a STAR is deserved by HEVEA in terms of future prospect.
17/02/2014 08:40

Hi brendonyeap, comparing apple to apple between POHUAT and HEVEA :

1) Company Management : both have shown professional management and good corporate governance since listing without any scandalous or major misstep, unlike LIIHEN which is now deeply entangled with a legal suit brought by a disgruntled and professional shareholder where the case can drag on for years and destroy the company's image totally. However, HEVEA has the added advantage of a real-world major crisis management experience in 2009 which almost brought the company to the brink of extinction. After seeing the shares price of HEVEA dipped to an all time low of 9 sen and how it managed to crawled back to where it is now, henceforth the massive improvement of its balance sheet, I am astounded at how awesome the management of HEVEA. POHUAT on the other hand was on a smooth sailing, as such we are not sure if they too can stand that kind of stress test. For this, I will give HEVEA a STAR.

2) It is arguable if selling by the insiders / directors is the sole root to the softening of its shares price. An opposing view suggests that this type of insiders selling actually improve the liquidity of the company's shares. In the case of selling by the directors of HEVEA for less than 500,000 shares during the last two months period which really is chicken feet considering HEVEA's 90.4 million issued shares. For this, I will give no STAR to the two.

Years ago MAS had a very successful and profitable flight kitchen. Its food was so good that even other airlines purchased their inflight meals from MAS. During Abdullah Badawi's reign MAS closed down its flight kitchen and gave a 25 year contract to purchase its in-flight meals from Abdullah Badawi's brother. There is no need to wonder why MAS loses billions of ringgit when it implements policies like this. UMNO Youth calls this a part of the "Malay agenda". In UMNO-speak it means enriching a chosen few while keeping this GLC afloat at all costs with tax payers funds.

From the Brahim's Group website: "In 2003, Brahim's Airline Catering (formerly known as LSGB) entered into a catering agreement with MAS, for the exclusive right to supply and provide in-flight catering and cabin handling services to MAS at both the KLIA and Penang Airport." BAC is 70% owned by Brahim's and 30% by MAS. It's founder and executive chairman is listed as "Datuk Ibrahim Hj Ahmad" but his full name is Datuk Hj Ibrahim bin Hj Ahmad Badawi, he's the brother of Tun Abdullah Badawi.

Long ago, there was an airline called Malayan Airways. Then it became Malaysian-Singapore Airlines (MSA). For political reasons later it split into Malaysian Airline System (MAS) and Singapore Airlines (SIA). MAS operates domestic n int'l flights whereas SIA only has intn'l flights as its country is too small. MAS domestic flights were always full as AirAsia wasn't born yet. Now, abt 40 years later MAS had become a losing money airline due to poor management, cronysm, nepotism, and CORRUPTION. Yet it could claim to have been given awards. Wonder who were behind all these awards? Passengers of MAS (other than VVIPs who would receive better service and treatment) can vouch for the lousy quality. No wonder PM and wife will travel in private jets only. On the other hand, the no-nonsense management of SIA was given an ultimatum by their then prime minister - either they make it or break it. And they made it to be REALLY the best airline. Sad story for Malaysians.

BTW, three different occasions we flew KL_Beijing route...and all the three times MAS flight air-cond rosak...and that was a newish plane with over 350 people on board...so friends, fly any airlines you like except MAS, an airline that does not care for passenger comfort, and totally dependent on support of people with misplaced patriotism...

No wonder the share price of MAS is in the dumps- Less than a ringgit would you believe it? They are losing money every day and has to resort to cutting costs by serving low quality food! If ordinary folks complained about MAS service they will get the silent treatment; but thanks to Chef Wan, MAS has to "look into it".

TDM Plantation Sdn Bhd expects its Indonesian operations to contribute between 40 and 45% to the group’s earnings over the next five years.

Syarikat Takaful Malaysia Bhd today introduced a medical plan, myHealth Protector, to help ease the financial burden of expensive medical treatment.

SP Setia achieved RM8.24 billion in sales in financial year 2013, almost double what it recorded in the previous financial year.
As at October 31, 2013, it had RM9.6 billion in unbilled sales to be realised over the next few years which stands it in good stead to achieve record profits in the years to come.
The Group also has 4,782 acres (1935 ha.) of undeveloped land bank worth RM102 billion in remaining Gross Development Value of which SP Setia’s effective stake is RM71 billion