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3 comment(s). Last comment by Jupiter 2016-04-14 08:04

Posted by MillionInMaking > 2016-04-13 11:45 | Report Abuse

Is this export stock?

Max Yong

276 posts

Posted by Max Yong > 2016-04-13 21:38 | Report Abuse

Part of it :)


73 posts

Posted by Jupiter > 2016-04-14 08:04 | Report Abuse

Yes, export stock but that's not all it has going for it. Hevea is 100% export, EVG is 70%. Hevea is pretty much maxed out in terms of performance but EVG is unlocking earnings potential via 1) heavy capex investment in past bearing fruits now in terms of cost savings 2) restart of 2 plants previously shut down thereby creating a drag to its earnings 3) going downstream into furniture (similar to Hevea) which will create a new income stream and enhance its margins. CIMB is projected PATAMI of RM95m, RM120m and RM150m for FY15,, FY16 and FY17 respectively. EVG met earnings in FY15. Now awaiting 1Q2016 to see how they fare with lower forex compared to 4Q15.

Hevea is not committing to a dividend policy. EVG has committed to a min 25% payout from PAT. At current pricing, EVG is both a growth stock and a decent dividend yield stock. Using FY17 forecast, at 10x PE, EVG has TP of RM1.77 and dividend yield of 4.45%.

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