Heveaboard Bhd has released Q1 result on 20 May 2021 with loss of RM 831K. This is unexpected as the forecast is profitable of RM 8-10 million which is similar to peer of Evergreen.
The loss was mainly due to 10 days shutdown of RTA department due to COVID positive case of their employees. Shipments and production plan have to rescheduled. RTA is the biggest topline contributor to company revenue (65%) and Japan is the biggest customer (>78% as reported in 2019 report).
However, it is good to note that revenue actually increase for all segments. Particleboard is still profitable despite preventive maintenance shutdown. Particleboard is 30% of the company revenue and export to China (29%) and Japan (20%).
Price drop below SMA200 (RM0.604) to RM0.575 as 20 May 2021. No sign of moving upward in near term.
Prospect:
Company fundamental still remain intact. Outlook for particleboard and RTA remain strong. Will hold and monitor till second quarter. Forecast profit revised to RM24 million for full year 2021.
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