Company : Heveaboard Bhd
Business
:
Manufacturing
particleboard, Fungi business (King Oyster mushroom) & manufacturing of RTA
(Ready to Assemble) furniture. Business peak in 2017 and 2016 with turnover of
540 million revenue.
Fundamental
:
Cash
rich company. The 2019 annual report shows that other investment is 66 mil and
short term deposit is 62 mil. Non current liability is only 7.5 mil. Healthy
cash flow from operating is 64 mil and bulk is used to pay dividen.
Share
Price:
Price
peaks at RM0.80 in December 2020 then trending down to RM0.62 in Apr 2021. Number
of share is 567 million and have some institutional investors (Pheim & AM
for EPF – less than 1%). 5 years price chart shows peak of RM1.80 somewhere mid
2017.
Last
2 quarters of 2020 showing profitability 8.2 mil and 10.3mil – good sign. Assuming
8 million per quarter in 2021 then total projected profit is 32 million. Forecast
3 cents dividen over price of 73 cent. This will translate to 4% dividen
(better than bank FD rate). Company has dividen payout policy of 30%
Prospect:
Company
export to China, Japan, South Korea, India, Australia, Europe and USA amongst
others. Risk is RTA segment face shortage of foreign workers. Other risks
include raw material price of rubberwood, glues prices and oversupply from
Thailand, Vietnam producers? Monitor the financial results for 2 quarters.
Please
note that particleboard is not the same as plywood.
No comments:
Post a Comment