Not a big deal as their Gemas plant is fully operating and it has been priced in since 20th Feb. Looking forward for QR result this week at 12m net profit
Sungai Gadut Industrial Park, KM11 , that's heveapac on the map. Hopefully its minimal impact since furniture factory orderbook are all loaded up till year end.
FY20 Q4 met expectation considered sharp increased of shipping cost (2-3 times) in Q4 which might not be able to pass thru. to customers. If not 12mil not an issues at all.
Good decision la.. Hevea is prudent in paying out Dividend during pandemic periods for FY2020.
Excess free cash flows can always be used to invest in more automation and products innovation.
Mushroom biz (not bad) is seemed growing well even though during multiple state MCO, CMCO and A-Z MCO..
Awaiting engine to re-ignite (once Heveapac quarantine is lifted), Target Price PB x 1.10 = 0.76 x 1.10 = 84c.
In corporate finance, the objective is to maximise shareholders wealth. Wealth= mkt price x number of shares. Keeping excess cash and refusal to pay appropriate dividend has shaken confidence of shareholders. Banking stocks such maybk, pbbank are paying good dividends despite decline in profits. The mgt of Hevea...!!!!!?????
Why should i accept DY about 3.2 % when Tenaga offers more than double the yield? Remember Tenaga is in essential services with inelastic demand and a mkt monopoly. I regret did not switch all hevea to Tenaga last week.
when i check tenaga, the price when down after dividend ann. until ex-date then price climb back to its original price during dividen ann. date. Is it normal for price to move down after dividen ann. ?
Dunno why ppl here keep on talking about Dividend and hold grudge on it..
Any tech stock pay a good dividend.. look at those tech stock's price.. Tech firm use profit to invest for growth.. So do HeveaBoard need to change..
The most important in Biz is always continue to invest for growth.. in which will reflect in share price eventually. Temporary bad news can be a good news to others..
What if Hevea going to invest in Glove Sector or Invest in fully automated furniture production line (to resolve foreign workers issue), Are you telling me the Dividend cut is a madness.
Free cash flows generated moving forwards is going to be very very attractive.
Many sectors can be explored with that kind of free cash flows, it is time HeveaBoard shall step forward to invest for growth. I am fully support. Ha.. ha..
Hibernation mode due to Industri Sungai Gadut covid 19 string ?
My guess this week onwards plant utilization shall be back to full swing for both RTA & PB.
Q1 slightly impacted by (But price already factors in temporary weakness):
1. RTA plant shutdown for 10 days or plus due to Zombie Virus 2. Conservative 3rd Interim Dividend payout (partly lead to share price weakness) 3. As usual PB will also shutdown 7-10 days for maintenance in Q1
The goods, company buy back at 62.5c to give you signal :
1. No loss in orders (it is just a deferment of deliveries in March21 to April21) 2. Orders remain encouraging and operation can catch up its production in later stage 3. Ringgit in downtrend mode against USD 4. My guess Q1 will still better than last year while the shortfall will defer to show in Q2 since no loss in orders 5. Free cash flows can use to invest more automation in RTA segments (less headache compared to having more foreign workers). Move to Robotic line will be a good start.
Awaiting next month, Hevea's propose Final Dividend for FY2020 and its annual reports.
Next week is time wake up lol Hevea bcoz no more clouded with Temporary bad news. I am waiting Japan to start the Olympic torch on 25th March. Don't ding ding dong.
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....
sasword
1,169 posts
Posted by sasword > 2021-02-22 11:02 | Report Abuse
now selling rotten mushroom, no more good furniture