I am not so desperate to see tomorrow prices as i hv decided to hold for long term till another bonus issue announce, so long it is still the same existing quality management who run the business. if profit is good, the prices will go up naturally . Q3 ringgit depreciated further, so the early settlement of loan and trading in USD will benefit Hevea.
HeveaBoard Bhd Another round of earnings upgrade ■ 9MFY15 core EPS beat expectations, at 84% of previous full-year forecast. ■ Hevea has beaten our earnings estimates for three consecutive quarters. ■ Balance sheet has turned net cash in 3Q; surprise 3Q interim dividend signals quarterly dividend trend, that could be a re-rating catalyst. ■ We raise FY15-17F EPS by 17-23% on weaker ringgit of RM4.00/US$1, mitigated by slightly higher effective tax rate. ■ Target price raised to RM2.00 on rollover to FY17 EPS and higher target P/E.
Dividend of 0.5 cents, is equal to 2 % for the quarter. Last quarter was also O.5 cents, also. So in total 4% for the last 2 quarters. If one has bought it earlier before split, the dividend return would be higher. My dividend return is 6.65% for the last 2 quarters because I bought shares earlier/cheaper and have kept it longer.
HeveaBoard Bhd Another round of earnings upgrade ■ 9MFY15 core EPS beat expectations, at 84% of previous full-year forecast. ■ Hevea has beaten our earnings estimates for three consecutive quarters. ■ Balance sheet has turned net cash in 3Q; surprise 3Q interim dividend signals quarterly dividend trend, that could be a re-rating catalyst. ■ We raise FY15-17F EPS by 17-23% on weaker ringgit of RM4.00/US$1, mitigated by slightly higher effective tax rate. ■ Target price raised to RM2.00 on rollover to FY17 EPS and higher target P/E.
Hevea’s net gearing fell qoq from 4.6% at end 2Q15 to net cash (3 sen/share) at end-3Q15, three months ahead of expectations as we had expected Hevea to turn net cash by end-15. We expect Hevea to fully settle its US$ term loan and other RM-denominated debt by end-16, which puts it in a strong position to hike dividends substantially.
Quarterly DPS to commence?
A 3Q interim dividend of 0.5sen was declared, a positive surprise. We believe that Hevea is in a very comfortable position to commence quarterly dividends, a re-rating catalyst, in our view. We make no changes to our DPS forecast (we had raised it by 100-200% in Sep 15).
Maintain Add; EPS and target price raised
We raise our FY15-17 EPS forecasts by 17-23% after raising our average RM/US$ rate from 3.70 to 4.00. This is mitigated by slightly higher effective tax rate in FY16-17 as some of Heveapac’s (the furniture division) tax allowances have expired. We raise our target P/E from 10.5x to 11x for improved trading liquidity. Hevea’s trading liquidity has risen four-fold from US$0.3m/day to US$1.3m/day since initiation. Re-rating catalysts are continued weakness of the ringgit and payment of quarterly dividends.
I just bot Hevea warrant . undervalue. :) as long as the management is good team, company continuously produce record breaking result, the share price eventually will be rocketed.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
win2win
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Posted by win2win > 2015-11-17 21:42 | Report Abuse
We will know the target price tomorrow!!