HeveaBoard Berhad
HeveaBoard and its subsidiaries manufacture, trade and distribute a wide range of particleboard and particleboard-based products. HeveaBoard takes the lead in the manufacturing of particleboard – a reconstituted wood panel derived from rubberwood residues, while its subsidiaries are involved in down stream particleboard based Ready-to-Assemble furniture manufacturing, trading and distribution of particleboard and wood panel related products.
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Just today, Heveaboard (5095) had released its 2014 Q4 report. With a whopping 188% gain over its preceding counter, this counter is definitely noteworthy.
A net profit increase of 188%, this sets Hevea’s EPS to 6.27 for the current quarter.
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As the quarter report is reflective up till December 2015, this shows the period during the strengthening of USD against MYR. At the time of writing, USD is 4.22 against the MYR. This will further benefit HEVEA in its coming quarter report due to the high USD. (Note 1)
About a month ago, HEVEA had a controversy which had led to its stock losing more than 40% to a low of RM1.1. However, it had since rebounded to its current level of RM 1.4. I believe that this is still a panic sell by many of the investors. I highly doubt that the company’s earnings would be affected due to the scandal.
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Having that said, I think that this is a great time to collect some HEVEA shares due to the weak sentiment of many of the investors.
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Why? Following its 3rd and 4th Quarter EPS of 6.27 cents and 4.63 cents respectively, the fair value of HEVEA should be around the RM 1.83 level. However, I am still being slightly conservative as the strong USD will further push HEVEA’s EPS to higher levels.
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At the current time of writing, I am owning shares of HEVEA.
Disclaimer: This is NOT a recommendation to BUY or SELL. If you wish to do so, trade at YOUR OWN RISK.
K.H.Jian Invests 