Board business add new production line, at least another 10% production for China demand. RTA business doing very good, Japan Olympic is coming, will become mini IKEA soon. Mushrooms business is another bonus.
There are bunny, fish and now...cat! All are hamka binatang 不人道的野獸 Now u guys can see what they are. Also maybe creatures want to eat Hevea's new mushroom fungi lol
Mieco is somewhat overvalued due to their factory disposal grain, while Hevea is not.
The correlation is not much. Mieco's business focuses on domestic market, while Hevea focuses on overseas market. Their source of income is different. Mieco does have a bigger capacity than Hevea though.
A year ago, rumours circulated that Hevea wants to acquire Mieco. Now Hevea's financial muscle is able to do just that easily. However, I believe there are synergies to be created with such acquisition. Maybe that's why Hevea doesn't want to increase its own particleboard production line that much as said by CEO in the interview last year. That could be the reason Hevea has been saving up money and increase cash holdings in its balance sheets to-date. I believe the cash will be used smartly at the right time but for now Mieco's share valuation is on the upper side.
Mieco could do a share split in near term to boost share trading liquidity in the market. If that's achievable, we could see some price actions and takeover by Hevea may be more likely. Just my 2 cents....
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....
buckbunny
1,217 posts
Posted by buckbunny > 2017-05-19 22:46 | Report Abuse
last chance to sell,,better jump ship before too late..