Recently, two companies have reported their quarter result with profit dropped due to loss in foreign exchange - Chin Teck plantation and Malaysian Pacific Industry.
@biskuti, I think Paktua73 has cut loss and adopts wait and see now.
I warned before, we should wait for at least the coming QR report out first before making your investment decision, due to recent forex, shortage of labour and material issues.
This company's shares bring a lot of good memories to me.
@omgimnoob, Heveaboard used to buy back own shares at much higher price (1.2 to 1.67). So it is made sense for them to buy now at 1.00, furthermore they have positive cash balance.
A furniture maker told StarBiz that for every 5% weakening in the US dollar, furniture manufacturers would see around RM2mil to RM3mil being shaved off from their profits. With very few of these furniture players undertaking hedging, the impact from the strengthening ringgit could be significant on the companies.
“The US dollar has dropped from RM4.50 to RM3.88 currently, so that is almost a drop of 15%. This means furniture makers can expect a RM10mil to RM15mil drop in earnings collectively,” he said.
Just take first 9 months FY2017 to extrapolate whole year EPS, shall be close to 12 cen per share. If PE 10, fair value is 1.20. If PE 8, fair value is 0.96, which close to current price now. And to remind that Heveaboard made profit is not bcoz of forex factor. Higher profit margin, production efficiencies, increased sales demand etc.. is the main contribution to their success these years.. Anyway, not suggest to buy or sell here. Bear risk on your own decision.
I not fully been convinced by those analyst's calculating on those forex impact. Somehow i think forex sensitivity analysis where disclosed in the AR is much correct. But everywhere, ppl believe weaken USD will hit the export counter, there is the trend I cannot deny.
short term no buying force ... expect 0.90 .... sell volume higher for previous trading day ... this co fundamental is ok ... so can buy when time is right.
EPF should be in deep shit on this counter now. You can roughly calculate its average price and see. But hevea's DY is so tempting. just wonder it can sustain or not.
@saltedfish, do you even know what "penny stock" actually means ah? Just cause a stock is <RM1, makes it not a penny stock. Market cap matters to give you context, otherwise even Sapura Energy will be called a penny stock despite being a multi-billion Ringgit company.
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....
shyityng
97 posts
Posted by shyityng > 2018-01-30 10:36 | Report Abuse
It will be going toward 80ct++ like it was in 2104