HeveaBoard Berhad (5095)

HeveaBoard Berhad (5095)

Malaysia's First JIS Certified Particleboard Manufacturer

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.

HeveaBoard was incorporated in 1993 as a private limited company under the name of HeveaBoard Sdn Bhd. The Company was converted into a public limited company in 2004 and assumed its present name, and was subsequently listed on the main board of Bursa Malaysia Securities Berhad in January 2005.

Hevea's share price has gone ex for 4:1 share split. This enlarges its share base from 100mil to 400mil shares, & reduce the par value of ordinary shares from RM1 each to 25sen each.
Share split i think is positive to help increasing the trading liquidity of Hevea.

With the continued weakness of MYR, Hevea will be able to achieve better FY15 earning results.
Besides, expect Hevea to turn net cash by the end of FY15, putting it in dividends substantially.

From the data above, we can see NTA is 2.86 which is undervalued. 

Besides, the revenue & profit trend is increasing, this is growth stock and Hevea's dividend yield is 3.7% and improving yearly. The average ROE is 15.9%. 

CIMB target price: RM 1.34

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