Top 25 shareholders own 53.97% of HeveaBoard Berhad
HeveaWood Industries Sdn Bhd 20.63% Firama Holdings Sdn Bhd 5.35% Hau Yoong 3.13% Keng Chung Chan 2.97% Firama Engineering Bhd 2.55% Kiew Yap 1.78% Public Mutual Berhad 1.7% Tein Yoong 1.52% Hock Gee Chua 1.4% Ka Yong Lee 1.36% Sundra Moorthi 1.06% Hong Leong Asset Management Bhd 1.06% Norges Bank Investment Management 1.01% Kwee Hiong Chong 0.97% KAF Investment Funds Berhad 0.83% Kee Sin Yoong 0.82% Swee Loo 0.76% Dimensional Fund Advisors L.P. 0.74% Gemas Ria Sdn Bhd 0.72% Kayu Moy Ah 0.71% Employees Provident Fund of Malaysia 0.69% AmIslamic Funds Management Sdn Bhd 0.6% Amanah Raya Investment Management Sdn Bhd 0.59% Liau Choon Hwa & Sons Sdn Bhd 0.52% UOB-OSK Asset Management Sdn. Bhd. 0.52%
Stop paying quarterly dividend is strong evidence that mgt lack confidence in the future. Under normal practice, CEO should step down. How can a general without confidence win a battle?
Whenever results proved analysis of Research Analysts are wrong, they always cover it with remarks like : results are below our expectations. They never admit poor judgement!
The company managed to achieve a positive RM3m operating cash flow for the latest quarter, despite a one-month FMCO. In the coming quarterly reporting in Nov 2021, there would be a 1.5 months of FMCO. I expect a loss after tax of RM7m, which makes for a break-even at operating cash flow level (ie add back depreciation expense).
That means the company did not bleed from its cash reserves and FMCO merely wiped out its cash profits earned during the period. The company still has a net cash balance of RM100m, post FMCO.
To stop paying dividend quarterly of RM3m when it easily can is hugely disappointing as some investors bought the company for its dividend. Yes, some investors will take the pessimism as lack of confidence by the management in tackling challenges.
All said, for the quarter beginning 1 Oct, operating environment should be substantially back to normal, unaffected by FMCO. The company should be able to return to profit after tax from then on.
Mieco moved up from the lowest of 41sen in past 52 weeks to 59sen, Evergreen moved up from 34sen to 50.5sen, Hevea rose from 41.5sen to 45sen only. There’s no reason it does not catch up and move to 60sen to keep up with its peers now.
A good turnaround and with RM115m net cash, shareholders expect a good final dividend. In question is whether they can expect sustained recovery in profits. Assuming in 2022, the company makes RM29m net profits a year, RM10m capex, and pays RM4m income tax, it will generate RM44m or RM0.077 additional cash a share. This makes the current valuation attractive.
The controlling shareholders again sold more than bought the company’s shares, even at around 45sen, a lowish price level. The company has stopped paying dividends for 3 quarters by now, although it has RM115m net cash. The management asked that shareholders invest in this company for the long run, but have been punishing them with both zero dividend and collapse in the company’s market capitalisation. What kind of signals the controlling shareholders are giving to the market? They are essentially asking the shareholders to bear the pain or otherwise sell off their shares.
their buy sell amount is insignificant to their holdings, both the siblings takes a million in salary+ benefit. buy selling few hundred thousands shares with movement of 10 cents is just a 100k up down, no big deal.
Most company dont pay dividend during pandemic unless they are pro-covid.
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....
fortunefire
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Posted by fortunefire > 2021-07-15 14:19 | Report Abuse
lining up for 0.40