Some comments here: The Board published in the AR 2016 that the total projected capex is RM48mil but look in the cash flows now, the total capex spent is RM58mil but there still got capital commitment of RM27mil as at reporting date. I suspect that they are doing additional investments to enhance more automation efficiency in RTA division to mitigate labor shortage issue. Since the Board saying that shortage of workers in RTA division is currently being solved, we can expect FY2018 PBT margin can be recovered back at double digit % (2017: 9.55% vs 2016: 14.49%)
Meanwhile Particleboard PBT margin also improved from 9.19%at 3Q17 to 13.10% at 4Q17. I would think the impact of rising raw material cost is being minimised as they can pass-on costs to customers due to high-graded product and value-added product. Currently RM/USD rate is stabilizing at 3.90. It can help those exporters to reduce the risk of forex fluctuation. But the main concern is overcapacity caused the production efficiency not achieved. It should be the big challenge to Hevea in the coming year 2018.
Unexciting of 1.6 sen dividend per share declared following the QR release, but investors should be patient to wait for final dividend to be proposed soon in April or May.
"So the market is keying off this idea of thinking maybe it won't be three rate hikes, but maybe four," Ware said, referring to the Fed's forecast for 2018.
Actually this qtr quite a decent result. Coupled with business diversification, current price which at the lowest, and high dividend. Decided to enter.
KUALA LUMPUR (Mar 21): PublicInvest Research said without making new low, Heveaboard Bhd’s price could be poised for some upside during its consolidation phase.
In a trading ideas note today, the research house said improving relative strength index and MACD indicators currently signal reasonable entry level, with anticipation of continuous improvement in both momentum and trend in near term that may continue to lift price higher to subsequent resistance level of RM1.00.
“However, failure to hold onto support level of 90 sen may indicate weakness in the share price and hence, a cut-loss signal,” it said.
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....
Avangelice
216 posts
Posted by Avangelice > 2018-02-27 23:11 | Report Abuse
lol suddenly so many wise analyst come here and sing praises about hevea. they making you hold do they can dump. don't be stupid.