Posted by nikicheong > 2017-09-05 09:53 | Report Abuse

http://www.theedgemarkets.com/article/heveaboard-faces-challenges-sustain-growth

Posted by nikicheong > 2017-09-05 09:54 | Report Abuse

Seems more like the MD just wants to keep expectations in check. I might bail soon. See if I find other better opportunities or not.

Posted by nich0las > 2017-09-05 10:32 | Report Abuse

aiyo, market drop. cipek punya North Korea. damm it, should kill kim jung on first!

Posted by flytothemoon > 2017-09-05 10:36 | Report Abuse

market no drop, the drop one is hevea

Posted by nikicheong > 2017-09-05 10:37 | Report Abuse

Today Hevea drop not to market, but due to unclear/uncertain future growth sustainability.

Posted by Patrick13 > 2017-09-05 11:04 | Report Abuse

The interview is just based on current Hevea's situation to elaborate the challenges and limitation. But it didn't reveal any profit estimate once RTA new plant and Particleboard upgrading works are done.

But 2 things to know:
1) Hevea will focus on high profit margin products eg. Super E0 and NAF (no other manufacturer produces in Malaysia)
2) Gourmet fungi is expected to contribute in FY2018: Target RM10 million revenue and RM3 million profit (30% profit margin).

Posted by nikicheong > 2017-09-05 11:15 | Report Abuse

Yeah Patrick, not sure how much of it is down to media sensationalization. Direct quotes from the Hevea head honcho don't sound so bad/depressing.

Posted by minghong > 2017-09-05 12:30 | Report Abuse

http://www.theedgemarkets.com/article/heveaboard-faces-challenges-sustain-growth

anyone can explain why director said the ban of exportation of rubber wood not benefit hevea? when ban the supply should be more hence the raw material (rubber wood) should drop?

Posted by Patrick13 > 2017-09-05 13:01 | Report Abuse

Hi minghong, the MD already explained as below:

Yoong noted that the sharp rise in rubber wood cost certainly does not bode well for HeveaBoard as rubber wood makes up 30% of the particle board’s raw material costs.

Posted by minghong > 2017-09-05 13:28 | Report Abuse

hi partick, what i means is export ban on rubber wood doesnt cause rubber wood price to come down?

Posted by Patrick13 > 2017-09-05 13:31 | Report Abuse

Hi minghong, pls refer below:

He also explained that the rainy weather has affected rubber wood supply, which caused prices to climb.

Posted by nikicheong > 2017-09-05 13:34 | Report Abuse

Patrick you are not answering the good sir's question.

Answer from the article:

"HeveaBoard isn’t benefiting much from the export ban on rubber wood [sawn timber] mainly because the company consumes rubber wood [logs] as raw materials. And that log export has been banned a long while ago."

Posted by nikicheong > 2017-09-05 13:36 | Report Abuse

It is the export of sawn timber that has been banned. Hevea uses the logs. Logs have always been banned. Hevea is an upstream customer of rubber wood, they will not benefit. The benefit in terms of production costs will be seen by downstream users of sawn timber.

Posted by sasword > 2017-09-05 13:36 | Report Abuse

Why so cibai ?? A lot of smart ppl queue to buy at lower and lower price ma...

Posted by bsngpg > 2017-09-05 13:47 | Report Abuse

Added another 10 lots at 1.62

Posted by bsngpg > 2017-09-05 13:48 | Report Abuse

Now, the holding of hevea is significant

Posted by 888newbie > 2017-09-05 13:54 | Report Abuse

aiyo, Edge article not very encouraging.

Posted by Patrick13 > 2017-09-05 13:59 | Report Abuse

Yo nikicheong, this article inside already provide answer A, B and C which quite straightforward. I posted 2 answers as hint, so is my problem or the good sir good question? XD

Posted by Dark_Knight > 2017-09-05 15:18 | Report Abuse

Batman was asking superman one question: Do you bleed? and so does Superman bleed to death!

Posted by minghong > 2017-09-05 15:26 | Report Abuse

thanks everyone..roughly get

Posted by yfchong > 2017-09-05 16:06 | Report Abuse

ok ok 1.60... on the way

Posted by yfchong > 2017-09-05 16:06 | Report Abuse

bro bsngpg.. loaded leh...

Posted by flytothemoon > 2017-09-05 17:28 | Report Abuse

specter leh?

Posted by nich0las > 2017-09-05 18:20 | Report Abuse

EPF acquire HEVEA, http://www.bursamalaysia.com/market/listed-companies/company-announcements/5535525

Posted by bsngpg > 2017-09-05 18:22 | Report Abuse

Since I have collected enough Hevea, I will stop here. I will start the second phase of collection below 1.55.

Posted by bsngpg > 2017-09-05 18:23 | Report Abuse

Just buy for div and buy time for company to grow.

Posted by meistsk3134 > 2017-09-05 18:32 | Report Abuse

keep for long term... when time coming, it will up again. the proce is cheaper than liihen. going buy it.

Posted by nikicheong > 2017-09-05 18:40 | Report Abuse

Walao, that means EPF is not a substantial shareholder in Hevea. This explains the fast move from ~RM1.45 to RM1.65 one or two months back. EPF was aggressively collecting.

Usually if EPF buy or sell it doesn't mean much lah to be honest, cause EPF's stock market performance is pretty poor in general terms. But it does mean that the institutions have taken interest in Hevea, and they tend to have a longer term view, so share prices may be supported at RM1.60 by these very same institutions.

Posted by wajatimur_28 > 2017-09-05 19:11 | Report Abuse

It's just good enough,bro

Posted by free2invest > 2017-09-05 21:06 | Report Abuse

Since management has hinted the challenges, I wonder what HLB and JF Apex will respond? Both's target price are above RM2.

If the two broker firms nodded with management's challenges and difficulties, they may sell off their stock. I wouldn't think they will top up further to support their price.

Posted by nikicheong > 2017-09-05 22:23 | Report Abuse

free2invest, those are sell side analysts lah. They don't do buying or selling. The buying and selling is done at the buy side, i.e. unit trust funds/EPF/PNB/insurance etc.

Management may be urging caution simply to avoid expectations running ahead. The TP for Apex/HLB is for end of FY2018. Management can't possibly know the direction of the Ringgit or the price of commodities, which tend to fluctuate for no reason at all.

There might be other strategic reasons for management to urge caution.

But still, it's worrying.

I wonder though...did Hevea head honcho call The Edge, or The Edge call him.

If he call, question is what's the motive? It doesn't necessarily seem like Hevea is totally overvalued...since it at least has a healthy dividend yield and is generating cash consistently on a yearly basis.

If The Edge call him, then they may have their own agenda one. The tone of the article is dictated by them. Business news reporters sometimes try to act funny and affect prices. Might be the writer missed the boat earlier and wants a second chance to buy in at ~RM1.50? ;)

Posted by flytothemoon > 2017-09-05 22:37 | Report Abuse

EPF buys, hevea gonna fly again la

Posted by Patrick13 > 2017-09-06 09:17 | Report Abuse

Drop again. Create the chance to grab for those long-term investors.

Posted by yfchong > 2017-09-06 09:18 | Report Abuse

now 1.58

Posted by free2invest > 2017-09-06 09:22 | Report Abuse

Hi Nikicheong, As hinted recent raining season will affect the supply of rubber logs and escalate the cost to Heaveboard. Couple with shortage of labour and geopolitical tension, QR3 will have challenges.

I also wonder his motive of telling these. Are these honest indications to investors? If you are following with this company, you know the answer.

Posted by Observant > 2017-09-06 09:23 | Report Abuse

The lesson is never fall in love with a stock. Still not the right time yet

Posted by free2invest > 2017-09-06 09:25 | Report Abuse

EPF buying or selling may not be the good indicator.

Posted by flytothemoon > 2017-09-06 10:13 | Report Abuse

why EPF buying not the good indicator?

Posted by free2invest > 2017-09-06 10:26 | Report Abuse

Hi Fly2moon, just my personal observation, sometimes it works but sometimes works the other way. As investor, we want to maximize our returns. Just be careful and prudent when you want to use it as indicator in your investment decision.

Posted by free2invest > 2017-09-06 10:31 | Report Abuse

Observant, agreed with you. Just treat them as your mistresses or lovers, and do dream about them at nght or day.....hahaha.

Sometimes you own them and sometimes you dump them. Then only fun, right? hahaha

Posted by free2invest > 2017-09-06 11:25 | Report Abuse

MYR strengthen against USD. Now at 4.2465. Another pulling factor for Heveaboard.

Posted by godhand > 2017-09-06 11:27 | Report Abuse

@free2invest The currency in trade is not USD...

YEN & CHINA YUAN is the major trade

Posted by godhand > 2017-09-06 11:39 | Report Abuse

for pohuat using USD is correct. in hevea calculation is not that simple

Posted by free2invest > 2017-09-06 11:51 | Report Abuse

Hi Godhand, you seem like do not really understand Heveaboard.

"As an export-oriented company, Yoong said the stronger ringgit also affects the company negatively as it mainly trades in US dollars."

Above is the extract from recent interview with Mr. Young (Managing Director of HBB) by TheEdgeMarkets. Below is the link of the interview that I'd like to share with you.

http://www.theedgemarkets.com/article/heveaboard-faces-challenges-sustain-growth

Posted by smartsing > 2017-09-06 12:15 | Report Abuse

dangerous.. Rm 1.60 Bye Bye

Posted by Keith Han > 2017-09-06 12:35 | Report Abuse

All export business use USD as their currency becAuse USD is international currency, even i business with china company, item all calculate in USD. So if ringgit grow, not good to hevea.

Posted by Keith Han > 2017-09-06 12:54 | Report Abuse

Although I'm quite disappointed that hevea doesn't get much profit in rubber wood export policy.But quite surprise CEO willing tell the truth which shown that their management is honest n transparent enough. Good management may be can't bring company run faster but I believe they can bring company walk longer and stable.

I just lower down my share and may buy back more if it drop to my target buy back price.

Posted by ys2k > 2017-09-06 14:02 | Report Abuse

i am happy to see the CEO telling some fact which are not "known" by public. i do not understand why people take it as "some motive behind the scene". if you are the one lead the game, you know how to control the game. what i mean is you can answer it much more worst than actual, or you can sound it very positive if you want to push the price high..maybe you will disagree with me, .the sentiment i got from the interview is somewhere neutral...

we can't deny on the stronger ringgit will further drag the profit because this is by nature of export company. if you compare the efficiency of the management of control the cost vs other wooden company, you can easily identify some has reported lower profit in this quarter.

if we view it from a different perspective, although HEVEA didn't gain much advantage by rubber wood export policy and yet it still able to growth on top line and bottom line in this quarter despite the increase of 50% rubber wood cost since early of the year.

Posted by godhand > 2017-09-06 14:41 | Report Abuse

thx for your input.i presume 'mainly' doesnt mean 100%

Posted by godhand > 2017-09-06 14:42 | Report Abuse

appreciate u backing up with facts