Dropped in share price cause by external factors ie DJ correction, recession and inflation fear. Evergreen manage to back to profitable by both internal/external factors. External -increase of ASP and external factors -company restructure, cost control efficiency and increase production of higher margin products. Currently share was traded at 0.685 translate to 0.57 x BV which still at huge discount.
I think drop in lumber price should not effect Evergreen as it produce 75% of MDF/PB and 25% of RTA/value added product. MDF was made up by 82% wood fibre, 9% of urea 9% of paraffin wax + water.Drop in lumber price shall benefits Evergreen as raw materials are getting cheaper.
I think investor are more willing to pay higher for Mieco as it's current profit margin of (7.38) is higher than Evergreen (3.81). Evergreen after restructure, disposing its loss making business and back to normal after COVID-19 restrictions with higher ASP Evergreen profit margin will rise higher. Stronger USD will also strengthen its earnings. As current Ukraine war not ending soon commodities will still remains high. I believe Evergreen is on the right path of recovery. Hopefully it can create new high of earnings surpass previous high of 71.44M in 2016 prior BI.
Texchem sushi king is back, currently it was traded at 1.25 x BV. Evergreen which will benefits from Indonesia capital shifting from Jakarta to new capital Nusantara where millions of new house will be built shall also be traded above its BV.
Both Texchem and Evergreen are having similar case but currently Texchem share price was traded at 0.98xBV while for Evergreen it's share price was still traded at 0.59xBV which still at huge discount on their share price therefore Evergreen price movement shall be similar to Texchem which to be traded around 1.0xBV.