By Hong Leong writeup, excerpt; "In 2019, low particleboard ASPs from oversupply in the region and high raw material price resulted in an abysmal year for particleboard makers. However, amongst furniture makers, weak ringgit fuelled profitability of furniture exporters. With unfavourable macro factors for particleboard makers that plagued the industry in 2019 (low ASPs, high rubberwood prices, rising glue price) to continue into 2020. Due to this, we downgrade our rating from Neutral to UNDERWEIGHT as we do not see these issues changing in the near term. Despite this, we expect weak ringgit to continue to fuel Lii Hen’s already robust sales growth." "Another trying year for board makers. Overcapacity of particleboards in the region is a continued plague for particleboard makers. We believe selling prices of engineered wood products will continue to remain depressed in 2020 given the oversupply in neighbouring countries, particularly Thailand. Furthermore, chronically high rubberwood prices in Malaysia, Indonesia and Indonesia in addition to rising glue prices (in line with higher crude oil prices) is expected to continue to put pressure on particleboard makers. Evergreen Fibreboard (SELL; TP RM0.22)."
GREAT NEWS GUYS, JUST FOR SHARING AND NO MEAN TO OFFEND ANYONE, TODAY ARBB 7181 AND AGESON 7145 ALSO SUDDEN SHOOT UP PRICE, INVEST NOW CAUSE ARBB BIG PROJECT GONNA ANNOUNCE WITHIN 10 DAYS! CHEERS GUYS
Loss before tax for the quarter ended 31 March 2020 increased by 34.9% to RM6.80 million from RM5.04 million recorded in the corresponding quarter of the preceding year. The increase in loss before tax was mainly due to foreign exchange loss suffered in current quarter and higher operational cost caused by low productivity.
u tau kah, tahun 2015-2017, usd/rm peak, masa tu glove untung gila kemudian giliran furniture/chipboard, sekarang usd/rm peak balik. glove sudah kembang, sekarang furniture dan chipboard baru nak kembang. cerita baru mula
u tau kah, tahun 2015-2017, usd/rm peak, masa tu glove untung gila kemudian giliran furniture/chipboard, sekarang usd/rm peak balik. glove sudah kembang, sekarang furniture dan chipboard baru nak kembang. cerita baru mula
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....
Kevin Tam
538 posts
Posted by Kevin Tam > 2019-11-14 17:48 | Report Abuse
Bottom is about 26-28cents n the risk is not high when Evergreen is below 30 cents....