But if they are not good enough, both will lose money.... in which case the investor will lose much more than the trader. The market is fair and impartial.
Texchem sushi king is back, currently it was traded at 1.25 x BV. Evergreen which will benefits from Indonesia capital shifting from Jakarta to new capital Nusantara where millions of new house will be built shall also be traded above its BV.
Evergreen has one more huge advantage.... the rising dollar. All its sales are in dollars and its production costs are in ringgit.... hence double whammy positive profit impact .
I think investor are more willing to pay higher for Mieco as it's current profit margin of (7.38) is higher than Evergreen (3.81). Evergreen after restructure, disposing its loss making business and back to normal after COVID-19 restrictions with higher ASP Evergreen profit margin will rise higher. Stronger USD will also strengthen its earnings. As current Ukraine war not ending soon commodities will still remains high. I believe Evergreen is on the right path of recovery. Hopefully it can create new high of earnings surpass previous high of 71.44M in 2016 prior BI.
KUALA LUMPUR: Evergreen Fibreboard Bhd is well-positioned to weather near-term headwinds, driven mainly by adverse weather and global macro events, Hong Leong Investment Bank Bhd (HLIB) said.
The bank-backed research firm said this was due to the wood-based manufacturer's well-integrated operations and its diversified production bases.
While the company has noted some tightness in log supply in Malaysia due to the longer than usual wet season since the end of 2021, which caused two major floods, it has diversified into using mixed tropical wood and wood chips instead of solely using rubberwood to help alleviate the shortage in rubberwood log supply.
HLIB Research said this had helped Evergreen to maintain near-full utilisation of its particleboard (PB) and ready-to-assemble (RTA) plants except for the medium density fibreboard (MDF) plant due to log supply shortage.
"We are not overly concerned about this as these challenges are not structural or permanent in nature.
"Overall, the company is still riding on a positive momentum driven by recovering demand in the panel board and furniture market," it said in a note.
Meanwhile, HLIB Research said Evergreen was also in the midst of installing solar panels across three of its major Malaysian plants.
"The structure for installing these solar panels is 'zero capex' whereby Evergreen does not incur any cash outflows.
"The solar panel operators entirely bear the installation and maintenance costs.
"Evergreen only pays a fixed tariff for the next 25 years at a substantially lower rate than Tenaga Nasional Bhd's standard tariff, thus resulting in cost savings for the company," it added.
HLIB Research has maintained its 'Buy' call on Evergreen with an unchanged target price of 94 sen.
Still short term traders are disposing while value investor are collecting. Recent share holder changes can see EPF is adding 1,402,600 shares while JP Morgan bought 14,156,215 shares.
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....
007007
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Posted by 007007 > 2022-04-21 11:59 | Report Abuse
But if they are not good enough, both will lose money.... in which case the investor will lose much more than the trader. The market is fair and impartial.