tax refund, gst refund expected in final quarter to improve cash balance further to maintain if not incease dividend payout. If mashroom breakeven in 4th quarter, profit will improve rm1 m viz a viz previous quarter. Effect of improment in labour supply first reported in Aug not reflected in 3rd quarter ended Sep understable due to time lag. ie. labor supply could be back to norm by Aug and impact wont be seen in 3rd Q ended Sept. No excuse if improvement still not seen in Q ended Dec.
mushroom business won't give any surprise, may be break-even or still loss a bit. Particleboard segment may be slightly impacted by price war. Labour issue solved should improve RTA segment, hope it can provide good result.
Mushroom not so fast, i don't expect it can contribute until 2020 or even further because too many issues need to be solved like build up brand name, market distribution, low volume and high depreciation, start-up cost, improve quality, improve yield, improve efficiency, cost efficiency and etc.
Quarter ended Dec, cash and cash equivalent increased by about rm22 million compared with quarter ended sept 2018. This is important for sustainable dividend payout. Total cash about rm104 million. quaterly dividend payment about rm6.7 million. Profit rend is encouraging
Revenue, profit margin and net CFFO are improving QoQ. Dividend is maintained. Couldn't ask for more in such challenging environment. Dont forget capex is significantly lot in the past few years. Hopefully all these will turn into good outputs very soon.
Overall Hevea posted a strong recovery in Q4 2018 :
- Revenue QoQ surged 24% from Q3 RM101.7mil to Q4 RM126.0mil - While PBT jumped 136% from RM3.4mil in Q3 to Q4 RM8.0mil (if you added back non-cash inventories written off RM4.57mil)
Management highlighted the shortage of foreign labour is now resolved. The company continue to focus developing higher value products, better cost management and efficiencies.
Q4 2018 result indicated that efforts from management was paid off with Strong Recovery Of Topline & Bottomline.
since 2015, company has been paying dividend 4 times a year. Final dividend for 2018 has not been made. think it should be announced in late April when audited acs are available for AGM. Improving quarterly financials and cash flows should help support this practice. Good luck to all fellow shareholders!
Fong SiLing was not appeared in the list of 30 largest shareholder as at 26 Apr2013. He appeared in the list on 25 Apr2014 @660K units, 22 Apr2015 @900Kunits+700K units Wa, 30 Mar2016 @3000K units+5000Kunits Wa, 30 Mar 2017 @8000K units, 3 Apr2018@8000K units.
demand for food for growing population could only get stronger! hevea needs to overcome the initial hicup before generating profit. it started only about 1 yr ago. too early to condemn! wait for your dividend end march. hopefully, it repeat last yr practice of declaring further dividend when 2018 audited acs ready for AGM. audited ac last day is 30th april.
hevea net cash co with high dividend yield and trust worthy mgt. can lay hong and QL match? i really dont know, need to spend time understanding the 2 companies u suggested.
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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....
azharhassan78
17 posts
Posted by azharhassan78 > 2019-01-25 10:02 | Report Abuse
slow and steady.