Icon8888 Gossips About Stocks
(Icon) Hevea (2) - The Poster Boy of Export Play
1. Introduction
Hevea is a dynamic stock. When things are going its way, it can really shine. Between 2014 and 2015, boosted by strong USD, its share price went up by more than 300%.
Recently, several people have written about the stock. However, I will still like to do a proper analysis of its past few quarters' results. That will allow us to have a better feel of where we stand in terms of valuation.
2. Historical Profitability
Note : PB = Particleboard, RTA = Ready to assemble furniture
The table is self explanatory. I don't really have much to comment.
As we all know, the group's June 2016 EPS was dragged down by line shutdown for maintenance. If you ask me to make a prediction for coming quarter result, I will nominate September 2015 quarter as the best proxy.
During that quarter, USD was 4.054, similar to September 2016 quarter's 4.051. Hevea reported core earning of RM19.4 mil in that quarter. Based on 456 mil shares, EPS works out to be 4.3 sen.
The company will be releasing its result in next one to two weeks. We will soon find out whether it meets our expectation.
Beyond the September quarter, all eyes are on the USD : RM exchange rate. If USD stays strong for extended period of time, Hevea will become a cash machine. With little debt, limited capex requirement and healthy operating cash flow, it will be in position to pay out strong dividend to reward its shareholders.
Interesting time ahead.
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Discussions
3 people like this. Showing 19 of 19 comments
Agree. Why those buying furniture every year must buy?
Posted by PlsGiveBonus > Nov 19, 2016 03:14 PM | Report Abuse
Every year furniture?
2016-11-19 15:26
means hevea now is full value ...if q no so good .. eps cannot improve ..then prise will be drop
2016-11-19 16:46
Wait and see its upcoming QR to see if there is grow in revenue or profits.
2016-11-19 16:54
Hevea is the best among furniture play because it benefits from weak rm and the most insulated from any Trump protectionist policy because it doesn't export to the US.
2016-11-19 17:19
Most of the sifu here icon paperplane jinhou....up down....lets see next week
2016-11-19 18:02
Calvin input ?
He better be sure of what really he want to comments are genuinely and truth.
2016-11-19 18:47
Is an eye opener for me, Sifu Icon......analysis by means of USD effect and a new lesson to be learned. Thks for sharing.
2016-11-20 10:35
bro icon8888, would like to get your advice why Hevea still have forex loss at the USD=RM4.285 & 4.189 but posted gain on USD=RM3.658?
I always get confused....
thanks!
2016-11-21 09:32
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Tq for sharing icon...how about PENTA..KESM AND TGUAN...
2016-11-19 14:01