This article first appeared in The Edge Financial Daily, on February 7, 2017.
Evergreen Fibreboard Bhd (-ve)
SHARES in Evergreen Fibreboard Bhd (fundamental: 1.8/3, valuation: 1.4/3) triggered our momentum algorithm yesterday for the first time since June 2015.
The counter closed down half a sen or 0.51% at 98.5 sen, with 4.52 million shares traded, compared with its 200-day average volume of 3.36 million shares.
The particle board manufacturer’s net profit tumbled 38.8% to RM16.88 million in the third quarter ended Sept 30, 2016 from RM27.59 million a year ago, on lower average selling price of the group’s products.
The group said its quarterly profit was also affected by higher operating expenses, which mainly consisted of lower foreign exchange gain and impairment of goodwill.
Evergreen Fibreboard is currently trading at 0.77 times its book value, and has a market capitalisation of RM837.54 million.
The stock currently has a 12-months price-earnings ratio of 11.17 times.
Evergreen earns only RM 17.86m per qtr but with RM 205.257m of debt borrowings. Now buys subsidiary to do RTA. Current payables amounting RM 149.521m also have to pay so where got money to pay so many things?
RAIDER SAYS...IF EVERGREEN EARN RM 17.86M PER QTR....PER ANNUM MEANS X 4 LOH = RM 71.44M PER YEAR....!!
THIS MEANS....THE RETURN ON MONIES BORROWED IS RM 71.44M DIVIDE BY RM 206M DEBTS LOH = 35% RETURN PA....VERY EFFICIENT ON DEBTS LOH..!! COST OF DEBTS ONLY 6% PA
THIS NOT COUNT THE RM 160m CASH EVERGREEN IS HOLDING AS AT 31-12-2016 LOH......!!
SO HOW COULD EVERGREEN BANKRUPT BCOS OF ITS MASSIVE DEBTS AS STAR CLAIMED LEH ??
THATS WHY RAIDER & GANG BUY....BUY...BUY LOH.....!!
STILL ACCUMULATING LOH....!! BIG MARGIN OF SAFETY MAH....!!
Evergreen5101 is angry loh because she is losing a lot of money gambling in Evergreen mah. Later her bets are being FORCED SELL and no one picks it up for her. LOL
Must be happy mah ah Birdie5101....unless u pawned all your 5 properties to play stock market??? Didn't u mentioned u OWED A LOT OF MONEY ???? Look below for evidence what Evergreen5101 said loh:
Mar 8, 2017 12:02 PM | Report Abuse
your skills is only humping on the debts.....i also in debts cause i owe bank alot of money, oh shittttttttttttt.
Afternoon session starts in 15 mins time loh. Those who don't want to get hurt better sell it quick loh. DOn't be like Dolly, stockraider and Evergreen5101 going to suffer BIG LOSSES.
U don't know EVERGREEN is in the Regulated-Short-Selling (RSS) list meh? Look here mah:
Seii Fohh Lohh.....suicide loh....Evergreen5101 just revealed that she used her 5 properties as COLLATERALS at 60% ahhh.....Don't play loh.....later Banks LELONG all your properties then u know. Ur parents know or not? LOL
LOL Evergreen5101's personal gearing so HIGH loh at 60%. Why u borrowed so much lah. Property gluts everywhere. Not Singaporean property prices falling meh? LOL probably u cannot unload some assets and look to gamble in Evergreen for quick bucks. Told u don't play and gamble loh.
4Q16 core net profit of RM13.8m (qoq: -27.6%, yoy: -46.1%) took FY16 core net profit to RM73.6m (-14.5%) The results came in within our expectation, accounting for 97% our full year forecast.
Highlights:
YoY… Core net profit in 4Q16 declined by 46.1% to RM13.8m, affected by lower sales volumes and ASP for MDF products, the absence of deferred tax assets recognition (in 4Q15) and likely losses from sawmill division.
QoQ…. Although revenue rising by 8.4% to RM262.8m (due to higher sales volumes and ASP), 4Q16 core net profit declined by 27.6% to RM13.8m. This was due mainly to higher costs of rubber log wood and glue (which account for about 2/3 of MDF production cost).
YTD… FY16 core net profit declined by 14.5% to RM73.6m, dragged by higher rubber wood log cost, lower ASP for Malaysian operations and higher tax expense, which more than offset improved performance from Thailand operation (due to higher plant utilization rate and lower production costs).
Risks:
Escalating raw material and labour costs; Weaker-than-expected demand and selling prices for MDF; and Delay in commencement of new production lines (in particularly, RTA and particleboard).
Forecasts:
We lower our FY17-18 core net profit forecasts by 25.6% and 14% largely to reflect for higher rubber log wood and adhesive price assumptions (which prices have increased by ~20% YTD on the back of weather-induced shortage and higher crude oil price).
haha... blxxdy hell sxckperformer only showed part of the HLBank report...
what is their target price???
let me show u...
Results 4Q16 core net profit of RM13.8m (qoq: -27.6%, yoy: -46.1%) took FY16 core net profit to RM73.6m (-14.5%) The results came in within our expectation, accounting for 97% our full year forecast. Deviations None. Highlights YoY… Core net profit in 4Q16 declined by 46.1% to RM13.8m, affected by lower sales volumes and ASP for MDF products, the absence of deferred tax assets recognition (in 4Q15) and likely losses from sawmill division. QoQ…. Although revenue rising by 8.4% to RM262.8m (due to higher sales volumes and ASP), 4Q16 core net profit declined by 27.6% to RM13.8m. This was due mainly to higher costs of rubber log wood and glue (which account for about 2/3 of MDF production cost). YTD… FY16 core net profit declined by 14.5% to RM73.6m, dragged by higher rubber wood log cost, lower ASP for Malaysian operations and higher tax expense, which more than offset improved performance from Thailand operation (due to higher plant utilization rate and lower production costs). Risks Escalating raw material and labour costs; Weaker-than-expected demand and selling prices for MDF; and Delay in commencement of new production lines (in particularly, RTA and particleboard). Forecasts We lower our FY17-18 core net profit forecasts by 25.6% and 14% largely to reflect for higher rubber log wood and adhesive price assumptions (which prices have increased by ~20% YTD on the back of weather-induced shortage and higher crude oil price). Rating BUY ( ↔ )
Despite the downward revision in our earnings forecasts, we still see earnings growth potential for the next 2 years, as we believe higher raw material costs will be mitigated by: (1) Strong US$ (HLIB forecast: RM4.30/US$ in FY17-18 from an average of RM4.00/US$ in FY16); (2) The commissioning of second RTA line and new particleboard line (which are expected to contribute to Evergreen’s bottom lines from 2H17 onwards). Besides, valuations are undemanding, at FY17-18 P/E of 8.8x and 8.1x respectively (assuming our earnings forecasts are met). Valuation Post earnings adjustment, our TP is lowered to RM1.20 (from RM1.51 previously) based on unchanged 11x revised FY17 core EPS of 10.7 sen. Maintain BUY rating on the stock. Source: Hong Leong Investment Bank Research - 24 Feb 2017
i3 admin... we investors at Evergreen forum here would like to request you to ban this starperformer for giving manipulated info to mislead forumers here...
we have shown him every single proof / calculation / valuation but he still injects nonsense...
U talked vulgar using Dolly_Chai ID and have to register another one with a pathetic number "2" on it. Why use Evergreen5101 to talk vulgar suddenly yesterday? i3 admin banned Evergreen5101 again? U must be playing with a lot of ID. Serves u right loh.
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....
Evergreen5101
288 posts
Posted by Evergreen5101 > 2017-03-08 12:31 | Report Abuse
Waaaa new skills can simply put words in people mouth geng ah yiu