I have been holding Hevea for more than a year. Apart from dividen received, the share price is not exciting. In fact, dropping due to interest rate hike, rising resin price and inflation pressure.
However,
it is not all that bad if we look into the fundamental. Company is cash rich
and no issue with interest rate hike. Strong USD only benefit HEVEA as they are
exporter. The input costs such as rubber wood and resin (glue) are in MYR.
Bulk
of the business is from East Asia (Japan) and very small portion from USA.
Hence, the impact on Hevea is very small.
The
Jan- May 2022 fibreboard export is increasing.
Source
from MTC
I anticipate
good 2nd quarter result from Hevea. Let’s see.
Down side risk seems limited.
At time of writing I own some Hevea shares. Buy at your own risk.
