Above expectation. Evergreen’s 1HFY12/10 net profit of RM69.6m came in above our and consensus expectations, accounting for 64% of our and 63% of consensus expectations respectively. Key variances to our earnings were higher average selling price and better EBIT margin (17.3% in 1HFY12/10 vs. our full year forecast of 14.1%) arising from improved efficiency. As expected, 2 sen interim tax-exempt dividend was declared during the quarter, bringing total dividend declared YTD to 4 sen.
Evergreen Fibreboard Berhad : Stellar Results Due To Higher ASP And Improved Efficiency -17/08/2010
Showing posts with label Evergreen. Show all posts
Showing posts with label Evergreen. Show all posts
Tuesday, August 17, 2010
Wednesday, June 2, 2010
RHB Equity 360° - 2 June 2010 (Evergreen, Semicon, AFG, SapuraCrest; Technical: AMMB) - 2/6/2010
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♦ 2Q10 results expected to be stronger by around 5% qoq, from higher sales volume coupled with higher ASP. Current capacity utilisation rate is >80% while ASP strengthened by 3% in 2Q10 vs. 1Q10. Total cost of production has dropped by 2.5% in 2Q10 vs. 1Q10.
♦ Indonesia operations to be commissioned in 2H10. To be conservative, we have only assumed contributions to start from FY11 onwards. However, if the plant is commissioned on time, this could potentially raise our FY10 EPS forecast by 5%.
♦ Growth is expected to mainly come from an improvement of market share and reduction in cost of production. Plans to grow both its Thailand and Indonesia market shares to 5% (from <2%) and 10% (from 6%), respectively in the near term. May try to further reduce cost of production through the securing of rubberwood log supply (by acquisition) and ownership of third glue plant. Any acquisitions of existing MDF players would only take place earliest in 2012.
♦ FY10-11 net dividend payout assumptions of 40-45% translate to an attractive net yield of 6-7% p.a..
♦ FY10-12 earnings forecasts reduced by 1.4-3.2% p.a. after updating US$/MYR assumptions, FY09 numbers, and increasing dividend payout assumptions.
♦ Fair value of RM2.30 (from RM2.35) based on unchanged target PER of 11x FY12/10 earnings.
RHB Equity 360° - 2 June 2010 (Evergreen, Semicon, AFG, SapuraCrest; Technical: AMMB) - 2/6/2010
♦ 2Q10 results expected to be stronger by around 5% qoq, from higher sales volume coupled with higher ASP. Current capacity utilisation rate is >80% while ASP strengthened by 3% in 2Q10 vs. 1Q10. Total cost of production has dropped by 2.5% in 2Q10 vs. 1Q10.
♦ Indonesia operations to be commissioned in 2H10. To be conservative, we have only assumed contributions to start from FY11 onwards. However, if the plant is commissioned on time, this could potentially raise our FY10 EPS forecast by 5%.
♦ Growth is expected to mainly come from an improvement of market share and reduction in cost of production. Plans to grow both its Thailand and Indonesia market shares to 5% (from <2%) and 10% (from 6%), respectively in the near term. May try to further reduce cost of production through the securing of rubberwood log supply (by acquisition) and ownership of third glue plant. Any acquisitions of existing MDF players would only take place earliest in 2012.
♦ FY10-11 net dividend payout assumptions of 40-45% translate to an attractive net yield of 6-7% p.a..
♦ FY10-12 earnings forecasts reduced by 1.4-3.2% p.a. after updating US$/MYR assumptions, FY09 numbers, and increasing dividend payout assumptions.
♦ Fair value of RM2.30 (from RM2.35) based on unchanged target PER of 11x FY12/10 earnings.
RHB Equity 360° - 2 June 2010 (Evergreen, Semicon, AFG, SapuraCrest; Technical: AMMB) - 2/6/2010
Tuesday, May 18, 2010
Evergreen Fibreboard Berhad : Still Strong 1QFY12/10 Results - 18/5/2010
In line. Evergreen’s 1QFY12/10 net profit of RM33.1m came in within our expectations but above consensus, accounting for 30% and 35% of our and consensus expectations respectively. As expected, no dividend was declared during the quarter.
Corporate Highlights - 18/5/2010
Corporate Highlights - 18/5/2010
RHB Equity 360° - 18 May 2010 (LPI, EON Cap, Sunway, Kencana, MISC, Evergreen, MAHB, KLCCP, Sino Hua-An, MAS;Technical: KLK)
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♦ We believe that LPI will be able to grow its gross premium by 21%, underpinned by the improvement in the property market, further expansion of its agency force and continued premium contribution from its bancassurance tie-up with Public Bank.
♦ For FY10, we are not expecting significant changes from FY09’s gross premium breakdown as management indicated that they expect to maintain the composition of its business portfolio.
♦ Number of agents has increased from 1,388 in FY09 to 1,400 currently. LPI has also introduced three different classes of elite agents that are determined by the respective agent’s ability to achieve and maintain a minimum level of profitable premium income.
♦ We believe LPI may undertake a corporate exercise in FY12/10 to increase the liquidity of its stock. The options include a bonus issue or a share split, both of which would not require any more capital commitments by investors. We estimate that it could potentially issue bonus shares of 3-for-4 based on its reserves as at the latest quarterly results.
♦ We have changed our forecast assumptions to incorporate: 1) higher gross premium growth of 21%; 2) higher claims ratio of 48%; and 3) lower management expense ratio of 18.5%. As a result, we have raised our FY10-12 earnings forecast by 0.3-3.6% p.a..
♦ Maintain Outperform, with a new fair value of RM16.70 (RM16.65 previously)
RHB Equity 360° - 18 May 2010 (LPI, EON Cap, Sunway, Kencana, MISC, Evergreen, MAHB, KLCCP, Sino Hua-An, MA...
♦ We believe that LPI will be able to grow its gross premium by 21%, underpinned by the improvement in the property market, further expansion of its agency force and continued premium contribution from its bancassurance tie-up with Public Bank.
♦ For FY10, we are not expecting significant changes from FY09’s gross premium breakdown as management indicated that they expect to maintain the composition of its business portfolio.
♦ Number of agents has increased from 1,388 in FY09 to 1,400 currently. LPI has also introduced three different classes of elite agents that are determined by the respective agent’s ability to achieve and maintain a minimum level of profitable premium income.
♦ We believe LPI may undertake a corporate exercise in FY12/10 to increase the liquidity of its stock. The options include a bonus issue or a share split, both of which would not require any more capital commitments by investors. We estimate that it could potentially issue bonus shares of 3-for-4 based on its reserves as at the latest quarterly results.
♦ We have changed our forecast assumptions to incorporate: 1) higher gross premium growth of 21%; 2) higher claims ratio of 48%; and 3) lower management expense ratio of 18.5%. As a result, we have raised our FY10-12 earnings forecast by 0.3-3.6% p.a..
♦ Maintain Outperform, with a new fair value of RM16.70 (RM16.65 previously)
RHB Equity 360° - 18 May 2010 (LPI, EON Cap, Sunway, Kencana, MISC, Evergreen, MAHB, KLCCP, Sino Hua-An, MA...
Thursday, May 6, 2010
RHB Equity 360° - 6 May 2010 (Hiap Teck, Construction, Unisem, Faber; Technical: Evergreen)
Top Story : Hiap Teck – Focus remains on domestic demand
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♦ Despite demand and margins for pipes in the domestic market have improved significantly, Hiap Teck’s capacity utilisation is currently constrained by inconsistent HRC supply domestically. To ensure consistent HRC supply, Hiap Teck is now planning to secure local HRC by giving advance payment to the Megasteel.
♦ Management indicates that export demand is likely to remain weak in the near term, as:
1) Demand in the US market has yet to gain traction; and
2) The ongoing investigation by the Australian government into the imports of steel pipes from Malaysia will result in Australian stockists staying away.
♦ Management believes that there will be a few more months (likely to involve a few more rounds of technical audits) before Hiap Teck can become the approved vendor to MITCO for high-grade ERW pipes, given the stringent quality control required as well as the company’s lack of experience for these pipes.
♦ Management indicated construction of the blast furnace would start by end-2010 and complete by 2013.
♦ We are lowering our FY07/10-12 net profit forecasts by 5.5-6.7% p.a., to reflect higher interest expense arising from its RM110m investment into a 55% stake in Eastern Steel.
♦ Fair value is lowered by 6.7% from RM1.80 to RM1.68 based on 9x revised CY10 EPS of 18.7 sen.
RHB Equity 360° - 6 May 2010 (Hiap Teck, Construction, Unisem, Faber; Technical: Evergreen)
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♦ Despite demand and margins for pipes in the domestic market have improved significantly, Hiap Teck’s capacity utilisation is currently constrained by inconsistent HRC supply domestically. To ensure consistent HRC supply, Hiap Teck is now planning to secure local HRC by giving advance payment to the Megasteel.
♦ Management indicates that export demand is likely to remain weak in the near term, as:
1) Demand in the US market has yet to gain traction; and
2) The ongoing investigation by the Australian government into the imports of steel pipes from Malaysia will result in Australian stockists staying away.
♦ Management believes that there will be a few more months (likely to involve a few more rounds of technical audits) before Hiap Teck can become the approved vendor to MITCO for high-grade ERW pipes, given the stringent quality control required as well as the company’s lack of experience for these pipes.
♦ Management indicated construction of the blast furnace would start by end-2010 and complete by 2013.
♦ We are lowering our FY07/10-12 net profit forecasts by 5.5-6.7% p.a., to reflect higher interest expense arising from its RM110m investment into a 55% stake in Eastern Steel.
♦ Fair value is lowered by 6.7% from RM1.80 to RM1.68 based on 9x revised CY10 EPS of 18.7 sen.
RHB Equity 360° - 6 May 2010 (Hiap Teck, Construction, Unisem, Faber; Technical: Evergreen)