Posted by specter > 2017-07-28 09:09 | Report Abuse

If u are so not interested with Hevea then what are u doing here? Can answer? Please I'm dying for your answer lol

Posted by specter > 2017-07-28 09:15 | Report Abuse

If u hold no shares, better stop barking. We're going to receive another round of dividends while the uptrend continues. Everyday whistling~.....

Posted by godhand > 2017-07-28 09:16 | Report Abuse

just sick of u misdirecting people

Posted by specter > 2017-07-28 09:25 | Report Abuse

Focus on stocks that u interested and keep an eye on quarterly results. Earnings, profits & rewards to shareholders are everything to shareholders. Understand?

Posted by ChartMaster > 2017-07-28 09:45 | Report Abuse

i dont think specter is misdirecting ppl.

Posted by flytothemoon > 2017-07-28 10:09 | Report Abuse

arguing is meaningless, share price will always reflect the story and truth

Posted by specter > 2017-07-28 10:19 | Report Abuse

Thks ChartMaster. I don't recall if anything that I posted is misdirecting. Only some irrelevant ppl talking gibberish.

Posted by free2invest > 2017-07-28 10:20 | Report Abuse

Agreed with ChartMaster, in fact Specter had shared with us many in depth analysis and his business points of view, which I think much better than many Investment bankers.

Posted by specter > 2017-07-28 10:50 | Report Abuse

Their points of argument are very weak. Once was stockraider accusing poisonous mushrooms & here comes this godhand accusing Hevea's mushroom venture being "irrelevant". It uses the waste by-products from its 2 main core businesses is pretty "self-explanatory". I'd suggest them to really find some better debate points before barking.

Posted by specter > 2017-07-28 11:16 | Report Abuse

Thks free2invest. We're sharing for the benefits of fellow shareholders & those who are interested only. We publish our opinions & findings openly here but we can't choose our audience because this platform is not an exclusive club.

Posted by Patrick13 > 2017-07-28 11:19 | Report Abuse

Some ppl is comparing Hevea & Mieco.. But my understanding is Mieco latest QR improved due to plainboard sales while they are going to less focus on particleboard & medium-density fiberboard.. is it they're still consider as direct competitor?

Posted by TF Tan > 2017-07-28 12:58 | Report Abuse

beware of black swan while swimming .... nothing to do with companies performance.

Posted by gogogogo > 2017-07-28 15:28 | Report Abuse

Where is salty buckbunny harimau..without them no fun here

Posted by Beza > 2017-07-28 16:35 | Report Abuse

Thanks CharMaster for your wonderful info about Hevea.

Posted by iwanreply > 2017-07-28 23:30 | Report Abuse

keep on maintain 1.68 its a good sigh i feel...half month to go

Posted by specter > 2017-07-29 09:13 | Report Abuse

Patrick13, the Mieco's latest acquisition deal is going to acquire SYF's furniture & boards making arm. Mieco is not making the highest 2 grades of particleboards whereas Hevea is focusing mainly on that highest grades of Super-E0 and E0 with only minimal of E1 still persist. Mieco produces both "plainboards" and "melamine-faced boards" which are still being lower grades and toxic at the same time hence not being eco-friendly products.

Mieco had discontinued its own furniture-making segment since last year end due to being "non-profitable" as told by mentioned in the AR2016. So I don't think they will want to continue SYF's furniture-making arm after the acquisition. The only attraction is SYF's particleboard/MDF arms but I believe they would instill to dominate the particleboard production capacity in the country & hope to diversify with a mixture of MDF from SYF's MDF arm though it's less profitable and with lower margins than particleboard. This is evidently proven with Mieco's own profit margins commanding double-digits from particleboards alone.

With that acquisition, it will increase its particleboard production capacity significantly but this is just volume increase effectively and it may not mean the quality grades. It still depends on their new directions so u can keep a watch on that. They have to even consider future shortage supply of raw materials, in which Hevea is tackling by not investing into a new production line to increase capacity but instead diversifying into other related business segments (mushroom venture) & using new-tech cleaning equipments to to recover more of that suppose to go into wastage raw materials.

The Malaysian government banned exports of rubberwoods effective 01-July-2017 is a boost to short to mid terms but in the longer terms it may pose a rubberwood supply shortage threat to local wood-based product manufacturers. In the long term outlook, the demand will "outstrip" the supply. The wild rubberwood stocks are depleting or almost none to be found so the industry will be looking into the rubberwood plantations & how many acreage of those are available or being planted/replanted concurrently? Most major land acreages still prefer oil palm trees for it being more profitable and less labour intensive than rubberwood plantations. Perhaps the furniture-making industry should be sourcing alternative raw materials or adopting new technologies or creative ways to reduce dependency on bare rubberwood. So it's still "wise" to grow product qualities being offered into the local/export markets & other related segments to sustain future earnings which could command higher profit margins than capacities/volumes alone.

However, I do not like the Mieco's acquisition deal because it will weigh down further on its own balance sheets for another RM 58 millions. Always keep an eye on the balance sheets and not to do over-expanding. If a company does not have a strong balance sheets, when it borrows more during economic downturn and it's going to be very tough to manage and even harder to execute & reap from its turnaround plans and capital expenditures (capex).

Back to the initial discussion, Mieco is not making any furniture currently after its own furniture-making segment cessation since last year end but it "might" be after acquiring the SYF's furniture-making & boards-making arms. Even if Mieco chooses to restart its furniture-making segment, the only difference is that SYF's furniture-making arm produces non-RTA furniture but fully assembled furniture. So Hevea and Mieco are not direct competitors.

Posted by free2invest > 2017-07-29 10:46 | Report Abuse

Good morning Specter, your analysis is very informative and impressive. Again, I don't think any investment banker can come out that good analysis like yours. If you have invested other counters, I hope you can share with me (want to follow you :). Thank you.

Posted by specter > 2017-07-29 11:27 | Report Abuse

Thks free2invest. We're all sharing and gaining together. I wish to change my last line to the following:

"...........the only difference is that SYF's furniture-making arm produces non eco-friendly low formaldehyde furniture except that affordable range of Hevea's user DIY RTA furniture. So Hevea and Mieco are not direct competitors."

Posted by specter > 2017-07-29 11:47 | Report Abuse

free2invest, to me the first and foremost importance is the business acumen when I review and pick a business to pursue. I see the other skills, methods and techniques taught at schools/academic institutions by good teachers being just nothing more than tools to verify and affirming my beliefs. Hk's LikaShing and China's JackMa both emphasise on education so equip yourself with sound understanding on the things u want to pursue.

LiKaShing in the past mentioned that when he first start & doing the plastic flower manufacturing business, he would read an american magazine named "modern plastics" just to learn the know-hows and to improve his plastic-flowers business. He made his first fortune from that plastic-flower business.

JackMa mentioned about himself that he too also learned in the similar ways about his own business trade of establishing his online marketplace trading platform known as Alibaba today.

What are the similarities that put these 2 men on top of their own games if u notice it? So there is no limitation to oneself even if you're not from the industry or discipline that u are interested in but u must have the passion to learn what is needed and be versatile and flexible.

Posted by choochen > 2017-07-29 14:04 | Report Abuse

https://asia.nikkei.com/Markets/Nikkei-Markets/Malaysia-Heveaboard-Estimates-Fungi-Project-To-Add-Up-To-MYR10-Million-In-Revenue-Official?page=1

Posted by SuperPanda > 2017-07-29 14:40 | Report Abuse

Hevea venture into mushroom still relate..
its not a 1 night plan.. mngrs are taught with SWOT analysis.. & mushroom is in the O aspect.. if u get wat i mean..

but if u against it, just leave and dont blame the mngr who their deposits are millions cmpare to us here only small cup but loud like empty tin

Posted by godhand > 2017-07-29 15:04 | Report Abuse

Huh which part of what I said are against what they do. Alternative is a must if there's a restrain cap on what your company can earn and make your company impossible to grow . But should this be a "basis" of your investment. The main business or the unproven business?

Posted by godhand > 2017-07-29 15:17 | Report Abuse

Would u invest in Coca Cola because they are venturing into cheese. And would u invest in kraft because they are venturing into soft drink

Posted by free2invest > 2017-07-29 18:17 | Report Abuse

Specter, agreed with you. I like this company's management, who can turn the company's net debt to net cash position in such a short time. Also, I can see they are eager to expand their main core business, but cautious at the same time to avoid over supply and shortage of materials situation which may cause idle of machineries. Company's managements are prudent and innovative too, they turning by products or waste into revenue. Even the revenue from mushroom venture may not be significant at near term, but as an investor of heaveboard, I'm proud with them. The growing of net cash position will translate to higher dividend and I'm enjoying that :). Heaveboard will be my long term investment.

Posted by wajatimur_28 > 2017-07-29 19:59 | Report Abuse

Agreed with superpanda

Posted by wajatimur_28 > 2017-07-29 20:01 | Report Abuse

Looks like godhand have psycho problem... ignore him...maybe he just envy with hevea performance...kikiki

Posted by nikicheong > 2017-07-29 22:04 | Report Abuse

Guys, you're missing the point. Hevea isn't going into a totally 100% different business with the fungi mushroom project.

They ALREADY have the necessary raw products needed to manufacture/cultivate the fungi - i.e. the sawdust, which is a USELESS by-product. So why not put that USELESS sawdust to good use in the fungi manufacturing process?

It's risky, and it will likely not live up to lofty expectations of certain people, but to me it will be a net value add with respectable profit margins, simply because a large part of the raw material cost will be effectively FREE for Hevea.

Posted by yfchong > 2017-07-30 09:37 | Report Abuse

relax lah mushroom only 20 mil paling kuat next q no dividend only mah...if impairment occurs

Posted by wajatimur_28 > 2017-07-30 16:27 | Report Abuse

yeah...new added value that's what you mean nikicheong...

Posted by flytothemoon > 2017-07-30 18:38 | Report Abuse

hevea just wanna fully utilize all the raw material to create more income , give a like to his director, zero waste, save cost so that dont need to pay for throwing rubbish

Posted by shortinvestor77 > 2017-07-30 21:34 | Report Abuse

Thanks Spectar for your unceasing effort to share with us about Hevea.

Posted by specter > 2017-07-31 09:06 | Report Abuse

It's likened to being without first grating and squeezing the coconut meats, you won't be able to obtain the coconut milk & oil for further uses. The same with Heveaboard must maintain its highly profitable core businesses of particleboard & RTA in order to have the wood residues for its mushroom cultivation venture. Please really read everything u can about Heveaboard's businesses/operations & within the industry from any sources that u can find & get a good grasp knowledge on them.

If u don't already know or forgotten that Heveaboard uses of its own wood waste residues as biomass feedstock:

(1) "Currently, about 15% of HeveaBoard’s total wood requirement comes from mobile chipping in rubber plantation. This method has close to 100% recovery rate and will leave no residue for further open burning, thus saving more than 20,000 tonnes of Carbon Dioxide from being emitted into our atmosphere every year."
(2) "Our process heat requirement comes from biomass generation, without the use of fossil fuel."
Source: Heveaboard's AR2016

(3) "He says 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."
Source: FocusMalaysia weekly (08-July-2017)

So Heveaboard not only sells the wood waste to boiler users & it uses it 100% for its own heat requirements in its plants but....it finally uses more of that wood waste residues from its 2 main core businesses of particleboard & RTA manufacturing to cultivate gourmet mushroom. This is an obvious & logical choice to derive more revenues & profits from the excess wood residues. Why sell to other boiler users in the country when Heveaboard itself can utilizes the wood residues to earn more revenues & profits? That sounds great to me.

Posted by isupertrader > 2017-07-31 09:31 | Report Abuse

Thx specter for the research info.

Posted by free2invest > 2017-07-31 13:45 | Report Abuse

Specter, thanks for sharing the info and your points of view. It is really good to invest in Heveaboard.

Posted by Patrick13 > 2017-08-01 09:15 | Report Abuse

Read through many sources of information, just summarize the latest capex progress:

Particleboard division: 3rd manufacturing lines already commissioned in Apr'17, and would increase capacity by 10%. (existing two lines annual capacity is 405,000 cm^3)

RTA division: Nikkei mentioned that new plant is 85% complete and should be on track for trial run by 4th Quarter this year. While The Edge also highlighted that new RTA furniture line is 60% complete and on track for completion by end-2017. This new line would be customized for Japan customer order with higher profit margin.

Fungi cultivation division: target to start production in 1st Quater 2018 and with initial production of 3 tons per day. So annual production is about 3mt x 365 days = 1,095mt. Nikkei says annual revenue contribution could up to RM10 million in 2018. That's mean selling price is average RM9.13/mt for each Fungi?

Posted by cchng2 > 2017-08-01 10:20 | Report Abuse

Patrick13, it is good analysis. thanks for sharing

Posted by support1234 > 2017-08-01 17:28 | Report Abuse

亿维雅即将公布的同样是截至6月30日止的第2季业绩，按过往惯例，该公司会在8月中旬公布第2季业绩。同样会有惊喜.......

Posted by wan7075 > 2017-08-01 20:21 | Report Abuse

today topup a bit on 1.63. hope hevea no disappointed me.

Posted by Patrick13 > 2017-08-01 21:05 | Report Abuse

Hi Specter, your comment is really amazing. Thanks for your so detailed study. I have to take more time to study about Hevea :)

Posted by specter > 2017-08-02 08:56 | Report Abuse

Glad to share and help to get a better understanding on Hevea. Few more weeks to go until Q2 release. Stay tuned.

Posted by nikicheong > 2017-08-02 09:06 | Report Abuse

Still think this has room to run. Will start thinking about selling only at RM1.85 levels. Till then we should be safe.

Posted by Patrick13 > 2017-08-03 09:32 | Report Abuse

Reach 1.70. New high again. Market expects the coming QR result very good? Otherwise, the share price will move to another way.

Posted by free2invest > 2017-08-03 09:37 | Report Abuse

Agreed, coming QR should be good, as other timber furniture companies have reported good results already.

Posted by free2invest > 2017-08-03 09:38 | Report Abuse

Don't forget the dividend they should announce too in coming QR.

Posted by specter > 2017-08-03 09:40 | Report Abuse

Beautiful. A solid growth company with progressive upside.

Posted by Knownfact > 2017-08-03 09:41 | Report Abuse

http://klse.i3investor.com/blogs/jfapex/129109.jsp

Posted by FullTime > 2017-08-03 09:51 | Report Abuse

RM2 is coming

Posted by nich0las > 2017-08-03 09:55 | Report Abuse

FullTime, you are right! You ask for it!

Posted by FullTime > 2017-08-03 09:56 | Report Abuse

nic, great

Posted by Snoopy仔 > 2017-08-03 09:58 | Report Abuse

BULLISH ahead!!!! Sit down and continue drink coffee..relax saja~~