Hevea is the most lovable stock. Shareholders should be happy with its achievement and it's commanding RM 950 millions market cap now. Breaching the RM 1 billion mark soon!
Hi free2invest, congrats to u and our fellow stakeholders. It needs to be 1.86 and above to breach the billion market cap! HL and JF gave TP 2.19 and 2.12 respectively so we still have more upside to go being courtesy to their expectations.
Evergreen has nothing to do with Hevea. Look at the financial statements. YoY all past 5 quarters in the red for Evergreen. Hevea meanwhile has been going from strength to strength.
Hevea is fully Malaysian, Evergreen is majority Thailand. Hevea particleboard is less than 50% of their top/bottomline (RTA is largest contributor). Hevea has higher value products with superior margins, and relies less on raw labour.
To me it is pointless to compare the two.
Also, Evergreen had plant maintenance. Read the explanations.
Also, to have confidence that Hevea will not suffer the same fate as Evergreen, look at the inventory size relative to revenue. For Evergreen it is almost 1:1 ratio, which is very bad. Their inventories are rising. Meanwhile Hevea's inventory to revenue ratio is just merely 0.4:1...which is extremely healthy, plus inventories have been on a downward trajectory.
Do not lose hope and faith guys! Just a few days to go...
This is Hevea and it's incomparable to others. Bear in mind that it's the only company in Malaysia that produces Super-E0 and E0 highest grades particleboards. Secondly, it's also the only company in Malaysia that produces eco-friendly kids furniture with "low formaldehyde" contents for the health conscious & eco-friendly target markets/customers, not to mention it's also the largest RTA furniture maker in the whole Asia region. Thirdly, it's also the only company in Malaysia to cultivate "King Oyster Mushroom" in large scale initially with RM 10.5 millions for the first phase out of the total three phases. Just these 3 key overviews of their businesses and product offerings are enough to tell u its MOAT is one of a kind and strong with no competitors. Q2 results will be announced anytime this week or next so what are u waiting for? :)
To be fair I've never been this excited for a Q report before. I think the excitement stems from the fact that either it will surprise on the upside (>RM25mil) or downside (<RM20mil). The former will lead to a rally above RM1.80, the latter will cause a fall into the low RM1.60s.
@Godhand, problem is 20-30% YoY is likely not enough to maintain the stock price above RM1.70. Recall we are coming from a low base last year due to prolonged plant shutdown, which escalated costs and reduced topline production.
It's never a best time to sell. Problem is whether there are enough buying interests waiting? Maybe I should sell some of mine to test the market and see if it sends price lower than my expectations :)
I bought 1.27-1.32 and I sold a lot in batches in order to get the best selling price ranging 1.73-1.77 and no foul plays but purely market demand absorbing. Then I bought back 1.62-1.65 and sold 1.73-1.75 yesterday. Currently buying back averaging down to make another killing. Now u see if u invest (not trade) based on solid fundamentals, u can make really good gains. Remember not to follow blindly but practice due diligence before u invest.
I still like and prefer Hevea for long term investment due to strong fundamental prospects, solid balance sheet, and near term catalysts is materializing very soon (gourmet mushroom venture). I've shared my views on the vast potentials of mushroom fungi as an export commodity such as canned foods/snacks and health supplements in the forms of pills/tablets, etc.
Good morning, yfchong. If you hold a lot of Hevea, you may reduce it to some as its competitor evergreen is not doing well due to high cost of log (shortage) and glue. There is a higher risk as we do not know its impact on Hevea coming result. Just my 2 cents.
I was quietly accumulating a lot & managed to have averaged my costs best to 1.3047 when most people were bashing Hevea or uninterested while they overlooked this gem. At that time, the main reason that I dare to buy so much was due to the reason that I knew its earning capability in each quarter was still consistent & sustainable and its stock price will definitely fly later fueled by their 2 major catalysts (Next door land expansion for RTA and Gourmet fungi) will commence since they set up the HEVEAGRO registered with 2 directors the Yoong siblings. I felt relieved because this action announced by the company somewhat tells me the 2 siblings are in the main driver seats steering the pilot project so that assures me as a shareholder that their commitment instead of putting others as directors. No one knows whether it will materialize or succeed but judging from Heveaboard's past multi-years struggles, now they are in net cash and strong business position so do u think they will want to screw up the company? A definite no. Same case as China which endured decades of poverty and now it prospered and it feared to fall back into the same struggles in the past.
There are many companies listed in Bursa that like to register new subsidiaries under the umbrella but do nothing or progress to nowhere. The key is to understand the management styles and their track records in order to know if they are serious and their setting up new subsidiaries/companies means real business with proper capex to inject into it. I'm not an expert in accounting or able to juggle all the financial jargons like many sifu in this forum but I view things mainly in a business perspectives and find out their feasibility and operations in details. Since Hevea has very strong balance sheet among its peers, I channeled my focus on its SWOT analysis.
I know it's easier to be said than done. There was no coverage by research houses back then and people were bashing about Hevea while some others do have Hevea shares on hand but not much so I believe that I was one of the few who keeps taking in the shares at attractive prices. I reaped what I sowed and it's not easy but u must have a good eye and patience.
The only thing that still excites me in Hevea is how well the Gourmet fungi business will perform domestically at first in 1H 2018. Secondly, the Japanese market fueled by the Olympic 2020 to be held in Japan which in turn indicates stronger demand for Heveaboard's high grades & eco-friendly products.
Beza, from what u said that shows me u really don't understand Hevea's strength. Its peers/competitors do not have what Hevea possesses. Just watch how it sprints pass the RM 1 billion mark @ 1.86 :)
Peers/competitors have posted bad quarterly results. Some who hold Hevea may opt to sell and buy to average down their other fallen wood-based stocks but I don't agree on that if a company is unable to improve earnings but should at least sustain the earnings without dramatic drop that means they are not competent. Fallen stock price does not mean bargain if it's not competent. Most of those who do that will most likely lose money in the near to long terms because business situations will become even more competitive or possibly worsened due to challenging operating environment & policy changes (recent one being rubberwood export ban) so if they couldn't even sustain themselves in this quarter, how well do u think they will perform in the next few quarters? Think very wisely. Heveaboard will have its Q2 result to show how competent it is as a niche and dominant company in its own fields so we hope for the best for its Q2FY2018 result :)
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....
flytothemoon
4,836 posts
Posted by flytothemoon > 2017-08-21 13:55 | Report Abuse
if big boss really wanna push, 10 mins can reach RM2 already lo, but what's the point to let ppl who not determine earn so much?