Earnings wise, both companies are similar. One sells medium density, another one deals with chipboards. Chipboard is just another iteration of low density chipboards. It all boils down on the type of building materials contractors need and what furniture makers want. Raw materials cost will keep going up no matter what. Hevea is obviously the worst since revenue is only 127 million There's one caveat to this. Chipboards are generally much more versatile than plywoods as it is both more environmentally friendly and flexible than the stronger, sturdier plywoods. ESG-wise, Mieco and Evergreen is a strong winner.
Furthermore, based on supply chain analysis, the biggest customer for Mieco is obviously Seng Yip Furniture and Spring Art Holdings. Furniture stocks have been doing great until recently. Mieco will continue to outperform under the right market condition as it slowly tracks its industry peers such as Century Plyboards India (currently trading at 47.61x PER) and Greenpanel Industries Limited (trading at 32.01x PER). However, these are the competitors since they manufacture plywoods, not chipboards.
Technical wise, insiders bought close to 1% of the total volume. There only exists 19 other companies with similar profiles based on extensive screening such as positive earnings, sector cyclicality and more.
Therefore, my short term price target for Mieco Chipboard remains at RM1.20 based on ratios and earnings-driven indicators. If all catalysts align with the macroeconomic factors/trends and with a possible market risk-on sentiment happening in second half of 2022, Mieco could hit
Evergreen Fiberboard is not a good company, but people like to play the rebound. Just look at the revenue segment for Evergreen. Mieco has better drivers
Yes, but I really should stop posting comments from now onwards. Some people are using me as a reverse indicator. Time to take a break from forums. Thankless job honestly
This is one of the few stocks to own in this difficult market. USD still strengthening until today as Nasdaq and S&P500 slides. Investors still buying cash and rotating out of all risk assets
Buy on every pullback, management dumping for fear of "retail sentiment" They probably read i3 comments and try to inverse retail investors. Do not donate your shares to management. Keep holding
Insiders trying to dump their shares on retail before the next earnings. Do not donate your shares. The trend will last until the start of Q3 2022. This is a long term hold
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 2938 views | 2 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
wallstreetrookie
9,784 posts
Posted by wallstreetrookie > 2022-04-05 20:00 | Report Abuse
Mieco has better catalysts, trust me