Posted by free2invest > 2017-05-31 14:21 | Report Abuse

Specter ...thanks for the detailed update and analysis.

Posted by Cornerstone > 2017-05-31 14:24 | Report Abuse

yes agreed...

Posted by nikicheong > 2017-05-31 14:29 | Report Abuse

Thank you Knownfact and Specter.

@Knownfact, actually I was wondering, the RTA in the new building when will become operational? They just buy the land in January. Did the MD not speak about it?

Posted by specter > 2017-05-31 14:31 | Report Abuse

Some warrants conversion today:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5446853

Posted by stockraider > 2017-05-31 14:32 | Report Abuse

Do not be over bullish on Hevea loh....!!
It is going to make a huge forex losses going Fwd mah...!!

Posted by free2invest > 2017-05-31 14:33 | Report Abuse

Specter, do you know how much warrants still outstanding?

Posted by free2invest > 2017-05-31 14:37 | Report Abuse

Stockraider, Heaveboard's management has many years of experience in export sales. Do you think they have no expertise or idea to deal with forex risk?

Posted by specter > 2017-05-31 14:43 | Report Abuse

After today's conversion...here's the latest outstanding figures:

HEVEA: 538,663,190
HEVEA-WB: 29,763,474

Posted by specter > 2017-05-31 14:48 | Report Abuse

Stockraider, u escape the hiding inside cave? How's ur evergreen? It looks like a messy disaster to me lol.

Posted by free2invest > 2017-05-31 14:51 | Report Abuse

Specter....thanks

Posted by Cornerstone > 2017-05-31 14:51 | Report Abuse

evergreen is another pui counter la..

Posted by Knownfact > 2017-05-31 15:05 | Report Abuse

niki, the RTA in the new building when will become operational? - no idea!

I did managed to talked to Peh Ju Chai (executive director of HeveaPac). He did admit that they failed to cope with the local demand of RTA. Most items are sold out in the local outlets. The demand is far exceed the supply.

Posted by Knownfact > 2017-05-31 15:16 | Report Abuse

I'm not overly concern about the weakening USD. The MD rightly mentioned that all export orientated companies will be confronted by this. Since the demand is still very strong, the company can pass on the cost to the end users when the time call for such an action. The company has no problem turning more to the local market also.

Posted by Knownfact > 2017-05-31 15:32 | Report Abuse

In the AR, "With a much stronger financial performance,
the Company had announced in the
previous AGM a dividend policy of not
less than 30% of the Group’s PAT to be
used for distribution as dividend. The
Board had since declared three (3) interim
dividends which totalled 4.6 sen per share,
or RM23.5 million for FY2016. The Board is
recommending a final dividend of 2.5 sen
per share to be approved at the forthcoming
Annual General Meeting (AGM), thus
bringing the total dividends for FY2016 to
7.1 sen, representing approximately 45%
of the Group’s PAT for FY2016."

The MD is fully aware of what they promised and did say they will stick to it. MINIMUM 30% and try to keep to 45%.

Posted by Knownfact > 2017-05-31 15:52 | Report Abuse

We did briefly touched on the subject of the share being undervalue and what is the level he will start buying back.

Posted by free2invest > 2017-05-31 17:24 | Report Abuse

So what they said?

Posted by cjlim > 2017-05-31 18:16 | Report Abuse

Copy from Invesalks.

Hevea 23 th AGM 简介

公司强调继续专注为公司的产品add value ，增加quality 和更eco-friendly. 尽量避免以价竞争，management 也看好Industry 的前景，现有厂房已经almost full capacity。 Particle board和RTA 的 demand 还是很高所以买地来expand capacity. 就2017 的RM48 million capex 有33.5 million 花在了新厂和地， 没错的话是专做RTA 的。现在厂已经70% completed. 今年年尾就会complete,为2018 contribute 多20% 的revenue, 108million (RM540 million x20/100)。Management 承诺会把revenue 做好，net profit 则不敢保证因为会受exchange rate, labour cost, tax, raw material 影响。在raw material 方面，hevea 有好像有自己的upstream (不知有没有听错)， 所以Q1 的profit 没受很大的影响尽管wood price 提高20-30%

Management 也说到不会想要拼购别的公司尽管hevea 开始net cash position. Hevea 和同行有不同的positioning, 专注的markets 和products 也不同，所以想简单些，先把自己做到最好。

Krea kid 的 B to C model, 还不成型，还需要多几年，近期对hevea 的impact 不会很大。

很多人很好奇hevea 会不会和全世界家私的龙头老大， IKEA 合作。原来，IKEA 找过hevea 洽谈几次，但因为IKEA 要很大的volume 和control, 很high risk, 所以都谈不成。但Hevea 还是IKEA 的潜在 business partner。
有一项不得提到的是hevea total export contribution 有50 % 是由日本和中国这两个国家贡献。日本和中国是进口很严的国家，但是hevea 可以penetrate进去，是不容易的。至于japan Olympic 2020 对hevea 的影响不是直接的受惠，现在Japan 的屋子也比较少用particle board 做的。
For 新的mushroom business, 现在还是摸索的阶段，估计会分3 个stages 来做，first stage 会带RM 10million ，不知是revenue 还是sales。短期对group 的帮助不大，但margin 很高，有40 % 左右。

Posted by Ghostliker > 2017-05-31 19:26 | Report Abuse

Good

Posted by ShareRich > 2017-05-31 21:21 | Report Abuse

Very GOOD,long term sure make money,will buy more on weakness!

Posted by free2invest > 2017-05-31 21:40 | Report Abuse

Agreed

Posted by cjlim > 2017-05-31 21:56 | Report Abuse

Possible one day HEVEA supply E0 standard RTA to IKEA?

Posted by 10bagger10 > 2017-06-01 06:44 | Report Abuse

可以有点志气吗?

Posted by specter > 2017-06-01 07:26 | Report Abuse

cjlim, it is possible. Ikea will have 3 stores in malaysia namely in damansara, cheras & the one in Johor will be opened end of this year.

Hevea is the only one particleboard manufacturer in malaysia to produce the highest grades of particleboards namely "E0" and "Super-E0". They discontinued the rest of the lower grades due to lower profit margins & focus on these 2 grades because they've shifted focus to use it to make their own premium RTA products which are commanding higher profit margins. They still produce "E1" grade but focus of selling raw particleboards mainly will be exported to China where the Chinese furniture makers will in turn use Hevea's particleboards to make their own locally assembled furniture. Even the world's low cost manufacturer namely the China's smart chinese exporters are sourcing & importing particleboards from Hevea. How influential do u think Hevea's position in the industry? Hevea's revenues in China's market grew +13.38% y-o-y in 2016. China is still its largest market for its particleboards division.

Posted by specter > 2017-06-01 07:44 | Report Abuse

I've always speculated the gourmet fungi business Heveagro to have high profit margins at least double-digits anything above 20% otherwise they won't start fresh a new venture if it doesn't command super high margins.

I'm just surprised from cjlim's shared transcripts that stated the management mentioned the gourmet fungi business will have 40% profit margins. That is extremely high and I hope the management can provide some official announcements soon.

Posted by nikicheong > 2017-06-01 08:56 | Report Abuse

What cjlim's shared transcripts?

Posted by nikicheong > 2017-06-01 08:58 | Report Abuse

I can't read the chinese stuff, sadly :(

Posted by Snoopy仔 > 2017-06-01 08:59 | Report Abuse

Thanks cjlim share information to us. From coming years, management Hevea manage company growth slowly and steady. It can let me sleep tight at night. Continue hold, coming ex-divide date on 13 Jun. Pocket money secure~~

Posted by Bizfuneng > 2017-06-01 09:31 | Report Abuse

Tq for so much info. Still holding tight.

Posted by ahson > 2017-06-01 09:39 | Report Abuse

Introduction to Hevea 23 th AGM

The company stressed the continued focus on the company's product add value, increase the quality and more eco-friendly. Try to avoid price competition, management is also optimistic about the prospects of the industry, the existing plant has almost full capacity. Particle board and RTA demand is still very high so to buy land to expand capacity. 2017 RM48 million capex, 33.5 million spent in the new plant and the land, and if not wrong it is dedicated to the RTA. Now the status is 70% completed, and expected to be complete by the end of this year, and add 20% more revenue for the 2018, around 108million (RM540 million x20 / 100). Management is committed to doing revenue, net profit is not guaranteed because it will be affected by exchange rate, labor cost, tax, raw material impact. In raw material, hevea seems to have their own upstream (I am not sure if i mishear), so Q1's profit will not have any negative big impact despite the wood price increased 20-30%

Management does not want to fight another company though hevea starts net cash position. Hevea and peers have different positioning, focused markets and products are different, so want to be simple, first to do their best.

Krea kid's B to C model, not yet mature, it will take several years, so the contribution from Krea on hevea will not be great.

Many people are curious if hevea will team up with the world's leading furniture, IKEA. They said, IKEA looked hevea to negotiate several times, but because IKEA demand to a lot of volume and control, thus very high risk and can not make the deal. But Hevea is still the potential business partner of IKEA.

Another point to mention is that hevea total export contribution 50% is contributed by the two countries of Japan and China. Japan and China have very tight rules in importing , but hevea can penetrate into, it is not easy. As for the japan Olympic 2020, it has little positive impact on hevea, and it is not a direct benefit, and now Japan's house is also use less particle board to build.

For the new mushroom business, now is still in exploring stage, it is estimated that it will be divided into three stages, first stage will bring in RM 10million, I do not know if it is revenue or sales. Short-term the impact is little to the group, but the margin is very high, about 40%.

Posted by Snoopy仔 > 2017-06-01 09:56 | Report Abuse

Hi Nikicheong, please see the english version.

Hevea 23 th AGM

The company stressed the continued focus on the company's product add value, increase the quality and more eco-friendly. Try to avoid price competition, management is also optimistic about the prospects of the industry, the existing plant has almost full capacity. Particle board and RTA's demand is still very high so company to buy more land to expand capacity. In 2017, 33.5 million of 48 million capex will spent in the new plant and the land, it is dedicated to the RTA if not mistaken. Now the factory has 70% completed, end of this year will be completed. 20% more revenue can be contributed in year 2018, 108million (RM540 million x20 / 100).

Management is committed to increase revenue, net profit is not guaranteed because it will be affected by exchange rate, labor cost, tax, raw material impact. In raw material, hevea seems to have their own upstream (I do not know if there is no wrong), so Q1's profit is not a big impact despite the wood price increased 20-30%.

Management does not want acquire another company at this moment though hevea starts net cash position. Hevea and competitors have different positioning, focused markets and products are different. So they continue focus and do their best at their own fields first before go for next actions.

Krea kid's B to C model, not yet fully mature, it will take several years, the recent impact on hevea will not be much.

Many people are curious hevea will cooperation with the world's leading furniture, IKEA. Originally, IKEA looked for hevea to negotiate several times, but because IKEA require big volume and constant product control. It will become very high risk to hevea. So this is the key reason the deal is not successful. But Hevea is still the main potential business partner of IKEA.

There is to emphasis 50% of total export contribution is contributed by the two countries, Japan and China. As we know Japan and China are very strict on importing goods. It is not easy task but hevea manage to make it.

As for the impact of japan Olympic 2020 on hevea is not direct benefit company, and now Japan's house is also less use of particle board. However, for the new mushroom business, now still at groping stage, it is estimated to be divided into three stages to do, first stage will bring u in RM 10million, I do not know whether in revenue or sales. Short-term does not contribute much to the group, but the margin is very high, about 40%.

Posted by nikicheong > 2017-06-01 10:30 | Report Abuse

Sirs, many thanks. That is some good insight.

Posted by carilembu > 2017-06-01 10:58 | Report Abuse

Many thanks for the AGM brief

Posted by Ghostliker > 2017-06-01 12:03 | Report Abuse

Going up to 1.4 soon.. not enough capital to top up :(

Posted by nich0las > 2017-06-01 12:29 | Report Abuse

What? HEVEA = IKEA "will be" Partner? UP lor, dont wait.

Posted by ShareRich > 2017-06-01 12:46 | Report Abuse

Long term,short term so so only,buy and keep.

Posted by cjlim > 2017-06-01 14:31 | Report Abuse

If 2017 EPS is 18 cents and trade in P/E10 only. HEVEA price will be $1.80.
Like MD said, HEVEA share price is undervalue currently.

Posted by Farge168 > 2017-06-01 16:16 | Report Abuse

without the hand behind the scene "kacau-kacau",price can be easily pushed up with very small volume because hevea is a good counter afterall.

Posted by Farge168 > 2017-06-01 16:26 | Report Abuse

if want to push back to 1.40 level,better do it today,nobody "kacau-kacau",smooth sailing all the way!

Posted by support1234 > 2017-06-01 16:26 | Report Abuse

RM 1.80 coming soon...

Posted by nikicheong > 2017-06-01 17:00 | Report Abuse

In the short run, the market value may diverge from the intrinsic value. But in the long run, the market value will always diverge with the intrinsic value.

Posted by specter > 2017-06-01 21:21 | Report Abuse

Once clarification is given on the happenings and direction of the company, Hevea's share price momentum will speed up its uptrend trajectory.

Posted by free2invest > 2017-06-01 21:51 | Report Abuse

Agreed

Posted by godofgamble > 2017-06-02 00:21 | Report Abuse

Uptrend

Posted by sarahdeaton > 2017-06-02 07:42 | Report Abuse

I buy hevea because the MD is handsome. Period.

Posted by AyamGatal > 2017-06-02 08:58 | Report Abuse

Rupanya ade ayam gatal ni customer nya kotex punya konon

Posted by specter > 2017-06-02 10:06 | Report Abuse

Ignore the noises. Study their export market destinations.....

Posted by loongzai2 > 2017-06-02 10:35 | Report Abuse

if i buy now can i still get dividend?

Posted by Ghostliker > 2017-06-02 11:25 | Report Abuse

Buy before ex 12/6

Posted by Farge168 > 2017-06-02 12:31 | Report Abuse

The 'hand' is back,so that's it for today,see you guys next week!!

Posted by markgor > 2017-06-02 15:31 | Report Abuse

sienz