stockraider, your maggi mee noodle is more toxic. Ayamas hot dog also toxic. Read the labels with addictive and preservatives added into them. Go search on internet, if edible mushroom grown on toxic waste, it will not succeed. Will Hevea invest RM 10.5 millions to fail? Don't worry lah Hevea knows better than outsiders.

Why so many conmen here today?

Organic mah....Hahahahaha

Oh....u know how to highlight it out for us ya. Didn't u read the WORD...."ORGANIC COMPOUND"? Hahahhahaaha Organic ......

One important point I want to highlight and counter the naysayer:

Who tells you that Heveaboard is using toxic waste to cultivate mushroom? MD or you made up a story? Which parts or which batch of the wood waste are being used to cultivate mushroom can be different.

If it is really toxic, do u think the mushroom will grow meh? Got logic right there? I laughing very hard at the moment on stockraider.

Didn't most eatery out there use recycled oil which is more hazardous and contains cancer-causing agents? Still no one dies. Cannot be compared to Hevea's eco-friendly motto.

Hevea's furniture even received stringent international certifications like JIS. Its mushroom products will definitely be tested and certified also because Hevea believes and always use stringent international certifications to export them. If its own non-food wood products also so safe to be certified then its food products will be even safer.

flytothemoon, read the latest interview in FocusM and in MD Yoong's own words here https://ufile.io/wn1m3 This is the proven management and key people that brought a successful turnaround for Hevea back in years ago. Most people know the people inside Iris has no integrity and clouded with scandals so u cannot compare it with Heveaboard.

The new article covering the latest interview with MD Yoong on FocusMalaysia is downloadable here https://ufile.io/wn1m3 as shared by our fellow contributor "simonc". Good job!

Some compelling key info on the new "Gourmet Fungi" business which really caught my attention (*from the latest interview):

1) Group managing director Yoong Hau Chun says profit margins from the mushroom cultivation will be better than its core business of manufacturing particleboards and ready-to-assemble (RTA) products. This [earnings margin] is what prompted us to look into the new business.

2) The project is divided into three phases. At the moment we are only in the first phase. If things are encouraging and we see growth prospects, we are able to triple capacity. The business plan [of mushroom cultivation] seems to point towards this direction and may be something quite encouraging.

3) "The return on investment is rather short [in terms of payback period] and the margin is impressive on paper. This is why we decided to go into it." Yoong tells FocusM.

4) Heveaboard produces up to 100 tonnes per day of low-quality raw materials, which are organic compounds that are usually sold to boiler users at a discount.

5) "We have been thinking what to do with this low-quality raw material. Actually, there are a few uses for it, one of which is to cultivate the mushroom." Yoong says.

6) Despite not having prior experience and knowledge in mushroom cultivation, he says Heveaboard has done research on it and found that no one in the country is growing the King Oyster mushroom.

7) "We thought it will be good because there is a market here, and we can utilise our waste product. Most importantly, we have a group of people that are already in mushroom cultivation activities, although it's not the same fungi. Still, the technique is more or less the same, and we have purchased the knowledge transfer from China. In fact, our people have gone to China for the relevant training. I think it should be fine, it is something we should be able to master." Yoong says.

Let us pin it down here for evidence in future:

paperplane2016: Venture into funny business that management don't have expertise,a warning sign
10/07/2017 22:38

So let's see in the near future whether Hevea's mushroom cultivation business or paperplane2016 is the "funny" subject later.

No one company will invest RM 10.5 millions into a new venture without due diligence.

Found a research paper on mushroom cultivation titled:

Prospects for Increasing Commercial Mushroom Production in Malaysia:
Challenges and Opportunities

http://www.mcser.org/journal/index.php/mjss/article/view/8766

Simonc tq for sharing. We appreciate your useful contribution.

They will have a new focus on "veneer-based" furniture products. This simplistic method of making furniture easily raise the premiums not only to the aesthetic quality but the selling prices as well thus it improves profit margin to a few notches up.

http://jacsonsveneers.com/wp-content/uploads/2015/02/veneer.jpg

http://cdnimages.buyonlinenow.com/siteIcons/VeneerLayers.gif

cjlim, domestic election is looming therefore we may see another wave of MYR depreciating again. Go for export oriented stocks theme play!

Hevea still reign supreme! Only companies with the strongest balance sheet + double-digit profit margin upcoming catalysts ("Gourmet fungi") can weather the storms. What a proven theory with strong demand for Hevea shares. Thumbs up!

HLIB: Stronger earnings on stream (Heveaboard)
http://www.bursamarketplace.com/mkt/tools/research/ch=research&pg=research&ac=169049&bb=172500

Good solid growth company like Hevea always soaring high like an eagle when it flexes its wings!

At the meantime, collect dividends each quarter :)

I'm looking out for Hevea to attain a RM 1 billion market cap @ RM 1.86 based on current outstanding issued shares before anymore conversions as of today.

My prediction of 15% upside is officially realized from 1.30-1.50 for first upward surge. Second wave will be supported by near term catalysts as mentioned which will add another 24% upside from 1.50-1.86 to achieve RM 1 billion market cap mark.

15% + 24% = 39% in total (*Quite reasonable for an investment less than a year performance)

The public is keeping up with the "Just Do It" attitude. Since there are more analysts coverage reports on Hevea for these past few days, how much more extra money that fund managers are pouring into Hevea?

Still soaring like an eagle. My first prediction of a 15% upside from 1.30 has been achieved. Now we're waiting for more info on that new venture to boost stock price further.

Hold on to your horses! We're waiting for exciting announcements on shareholder rewards and gourmet fungi venture.

So gay

If a company can expand its current facility on an extra piece of land just right next to the current one, it is the best piece of land that money can buy. It saves on logistics coupled with best synergies.

Wow just reached RM 800m market cap once again! Another 200m to go. Today's top volume and # of trades.

Market forces are now more inclined to forward earnings expectations. I'm waiting its market cap to reach RM 1 bil mark @ RM 1.86 based on current outstanding shares.

It gave TP 2.19 with 50% upside which is still lower than I expected. Collect dividends all the way hehe

Why so many unrelated 垃圾 posted? Unnecessary

Voila!

I do not think the rubberwood export ban could have a big impact on earnings but it just ensure a steadier and better supply to local makers hence that eases the bidding price for those raw materials and availability. It's still comes down to the management's ability to manage production costs through improved operational and production techniques. Production efficiency tweaks is the simplest form of profit margins improvement hence increased profitability even with the same amount of revenues as before. Logistics also may affect its overall costs but Hevea has solved it by purchasing the land for expansion next to its current factory in seremban for expansion. I've observed these 2 main efforts by the management based on my swot analysis which have increased its profit margins considerably.

Moving forward, the most anticipated catalyst for Hevea will be the "gourmet fungi" venture as indicated by the management in the recent AGM which is able to command above 40% profit margins. Please take note that the gourmet fungi venture will be a comprehensive business-to-consumer (B2C) chain, which is good so that Hevea is not susceptible to any disruptions in this entire venture chain. This will be own-brand-manufacturer (OBM) for Hevea. This will add to its branding stable of the existing Heveapac/Bocowood and KreaKids, all commanding double-digit profit margins.

http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=78127&name=EA_GA_ATTACHMENTS

The principal activity of HEVEAGRO is the cultivation of gourmet fungi, packing,
distribution and trading of all kind of edible fungi and agro products.


Hevea will be spending RM 48m on CAPEX this year 2017. The breakdown is as the following:

- RM 20m will be used in the RTA sector to build a new factory and to acquire new machineries for the 7.7 acre industrial land that we had just acquired for RM13.5 million.
- RM 13.5m to pay for the purchase of 7.7 acres land for expansion
- RM 10.5m to build new climate controlled gourmet fungi cultivation facility
- RM 4m will be allocated for further upgrading works for our particleboard sector.

Hevea's has diversified already with up and running businesses. Cannot be compared to those just started. The profits keep improving each quarter means it will deliver key results in tandem with the stock. Congratulations to those smart who bought at low.

Once it tapped RM 1.85, we'll have RM 1 bil market cap!

Market cap just hit jackpot 777!

Beautiful gap-up first minute.

Yesterday, Hevea was volume leader. Today, Hevea recorded the highest transaction values. Officially the highest market cap 711m. We're on our way to break the RM 1 billion mark! Stay tune!

The "better" news are yet to come.

No reason it would not doubled in value. I'm too bullish on Heveaboard.

Q2 result coming. Second wave of Bull run!

How many chance u want?

Today enough first lah. Tired sleepy now

touch that 1.39 first

grab and grab

We're sitting on the bull now

Today it's highest among all peers. Should we push more?

Mountains of cash ready set. Should we draw up another straight line up tomorrow or..?

I heard the hilltop will have a nice view

Just quietly buy. Start competing for bargain buy hehe

Good for u. I received mine this morning 10am

When u reached to a point whereby everyone simply fighting for the same pie with less diversification options within same industry, you've just have to maneuver through various means to keep yourself at a competitive edge. Just look at most successful tycoons who diversified their empires unless u have a one-hit wonder patented product that no one is able to replicate or compete...u may need less of a reason to diversify. Is Bill gates one of this typical example? One OS can sell almost forever. Sadly, Hevea is not in that case and that is why it needs to continuously evolve to keep up with its competitive edge within certain markets at any one time.

If you're a restaurant fast-selling sushi or chicken rice, u don't have to go into rice cultivation business because that's just derailed focus on your main core business scope. Leave that to the suppliers and avoid the scope of that to others in the business chain. Focus on core business and mitigate the supply risks by means of product innovation and diversification. Heveaboard done just that within a short 3 years time span and the results are apparent. From these, u would have guessed how the management's thoughts and behaviours are.

I interpret Hevea's recent diversification into gourmet fungi business as the quick response to the future shortage of raw material supply (rubberwood). The best move was to use the same amount of raw materials to produce premium products which could command higher selling price hence higher profit margins. With that critical stage accomplished (E0 and Super-E0 particleboards & eco-friendly kids furniture, etc.) hence its profit margins ranging from 16% to 20%+, the company needs the next main catalyst to boost and sustain future earnings.

I believe that a detailed business plan on the gourmet fungi business will be circulated to shareholders once they are ready so just be patience. The gross profit margins of gourmet fungi venture commands as high as 40% margins as mentioned during recent AGM by management which is deemed to be very lucrative. You don't need high ground for fungi cultivation anymore because Hevea is building a "climate-controlled facility" so it can be located anywhere or just the newly purchased land beside its current factory.

They are still using mobile wood-chipping process which has very high rate of chips recovery and it can be mobilized easily anywhere. That should be able to mitigate the supply risks. If sourcing of materials is done well, there shouldn't be any shortage of raw materials for its productions.

You see that, Hevea uses "mobile wood-chipping" and "climate-controlled fungi cultivation facility". These 2 methods alone have shown u the critical thoughts of the management by not obstructed by geographical constraints. Another one is to focus only on high profit margin businesses, double-digits margin in preference. Balance sheets are passing with flying colours. So please find me some weaknesses to discuss about.

Lol...buckbunny, don't expect u can accumulate cheap. Next thursday I'm receiving a BIG paycheck and I'll pour back all the dividend money along with extra purchases. Let's see until then. Have a great day ahead! Be happy and nice then the good fortune will follow you.

Dividend means nothing? How about that dividend money flowing back into shareholders' hands and shareholders can make decisions all over again with that money. Simple as that.

If a company unable to earn good profits so how does it able to reward shareholders? This is a testament of Heveaboard's good governance, efficient and effective management. The 30% dividend payout policy is not a bold one and rest assured that it's a reasonably sustainable policy whereas the rest 70% of the annual profits are officially under obligation to be reinvested back into its various businesses.