"The revenue received in USD goes entirely toward paying off KfW Bank whilst Hevea gets to enjoy the sweet fruits of a weakening Ringgit. This is evidenced by the record of an unrealized gain in foreign exchange of RM 4.897m in FY2013 against a loss of RM 4.417m in FY2012"
Actually the RM4.9mil is an unrelaized forex loss FY2013 against a forex gain in FY2012 as stated in the notes of the 4Q report. With that said, it still looks very positve for the Particle board section since it was still able to record a significant improvement in its bottom line despite the forex loss. So as its loan gets paid back, this number will only compound higher assuming it can maintain its high margins and strong cashflow...
burnt before in 2011 by hevea. They reported good profit but suddenly the next quarter went into losses. Sold at big losses. Extremely difficult to get out also as the stock illiquid.
Once bitten, forever shy. So this round when it returned to profitability I didnt take any position at all. Sigh... what a miss
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
houseofordos
936 posts
Posted by houseofordos > 2014-03-02 22:55 | Report Abuse
"The revenue received in USD goes entirely toward paying off KfW Bank whilst Hevea gets to enjoy the sweet fruits of a weakening Ringgit. This is evidenced by the record of an unrealized gain in foreign exchange of RM 4.897m in FY2013 against a loss of RM 4.417m in FY2012"
Actually the RM4.9mil is an unrelaized forex loss FY2013 against a forex gain in FY2012 as stated in the notes of the 4Q report. With that said, it still looks very positve for the Particle board section since it was still able to record a significant improvement in its bottom line despite the forex loss. So as its loan gets paid back, this number will only compound higher assuming it can maintain its high margins and strong cashflow...