Evergreen listed as one of the worlds top producers of Fibre Density Boards....after 2 years of losses....this company has started to turn around....2 quarters of profit.....with a substantial cash pile...Evergreen is poised to slowly......slowly move upwards....collection has already started in this company shares....with its recent upcycle to 43.5..... 52 week high of 53sens.....coming nearer......All the Best
1. Evergreen Fibreboard (JB) Sdn Bhd (EJB) is a wholly-owned subsidiary of Evergreen Fibreboard Bhd with operations in Pasir Gudang and Segamat, Johor. 2. The fire incident which occurred on 11 December 2021 happened in its Segamat premise, had damaged the wood fibre storage bin. Aside from this storage bin, the fire did not damage other sections of EJB's machineries which are currently in operations. 3. As the cause of the fire in the wood fibre storage bin is still under investigation by the Fire Brigade's forensic department, Management will commence repair works immediately after the Fire Brigade completes their investigation. It is estimated that the cost of repairs will not exceed RM500,000. 4. EJB's Segamat operations contributes less than 5% to the Group's turnover. Potential profit foregone from the downtime is estimated to be around RM100,000, based on the duration of downtime expected for repair works. Therefore, based on above estimates, the temporary disruption to EJB's Segamat operations is not expected to have any significant impact on the Group's financial result for the financial year 2021.
Commentary of Prospects There has been increased optimism as countries start opening up their economies. Even though Covid19 still remains a risk, countries are learning to live alongside it as we adapt an ‘endemic’ point of view, rather than a ‘pandemic’. Malaysia too, has better prospects as the country emerges from the Full Movement Control Order (FMCO) which has been restrictive on most business activities. Nonetheless, Covid19 remains a concern with an uptick in number of new cases being reported. During the 4 months of mandated shutdown from the Malaysian FMCO, it was the Group’s diversified base of operations in Thailand and Indonesia that gave it the resilience to remain profitable, with much improved contributions from its Thailand operations due to an increase in panel board prices, as general economic activities picked up around the world. Nonetheless, there remain headwinds. The quick resurgence of economic activities in China has put further strain on the logistics industry which continues to struggle with limited shipping capacities. The Chinese resurgence also resulted in higher costs of many commodities with supply-side playing catch up to high demand. The lack of sufficient electricity in China further limits supply of materials. Of particular concern is the increase in the price of raw materials used in the manufacture of glue which was on a sharp rise, in tandem with oil price increase. The price is currently stabilized. All these challenges are balanced with more positive economic outlook. With better overall demand in the Group’s key panel board product segment, the increase in average selling price has thus far, kept pace with the increase in cost. The Group will continue to work closely with its customers to optimize its pricing structure while maintaining a healthy order book. The Group’s operations in Thailand and Indonesia contributed positively to help alleviate the losses in Malaysia in the current quarter and looking forward, the Group is cautiously optimistic that after emerging from FMCO, its Malaysian operations too, will contribute positively to the overall result.
The Group’s operations in Thailand and Indonesia contributed positively to help alleviate the losses in Malaysia in the current quarter and looking forward, the Group is cautiously optimistic that after emerging from FMCO, its Malaysian operations too, will contribute positively to the overall result.
in Q2 & Q3, Evergreen's Malaysian operations were affected by FMCO and they were forced to shut down. Malaysian sales and profits were impacted (see a loss), but Thailand and Indonesia contributed positively to overall group, so we still see overall profit.
In Q4, no more FMCO in Malaysia, the company expects much better results ahead.
This is not pump and dump counter. Long term still bullish. Just because it break ma 20 doesnt mean it is pump and dump. Short term trader always get roasted because they have weak holding. Im still waiting for a rebound whether ma 50 or ma 200 because fundamentally this counter is very good
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