MIECO (5001) MIECO CHIPBOARD BHD
Mieco - Riding on Typhoon
Japan had been a country that is plagued with typhoons, however, typhoon that is of this quarter of the year had been seemingly more destructive and more dangerous than the previous typhoons that Japan had encountered this year. With Typhoon Phanfone just sweep through Japan, Typhoon VongFong had made is debut in Okinawa, and will be looking to visit Tokyo in Tuesday.
While the gloves sector had been seeing as a beneficial sector due to the ebola widespread, with Japan stricken with a couple of destructive typhoons, it will never be too late to look into the timber chipboard that will be an imminent ingredient in the reconstruction of the typhoon stricken area.
Topping the chipboard manufacturer will be Mieco Chipboard Berhad (Mieco - 5001)
Mieco - Roaring with Typhoon
Mieco, incorporated 41 years back then, had been envisioned to see it as a world leader in the manufacturing of particleboards with a special emphasis in high quality and value added wood based products. Till date, Mieco had one of the single largest particleboards line in the Asia Pacific region, located at Kechau Tul which had started operations in 2005. The plant had attained the MS ISO 9001:2008 Quality Management System and had it's product marketed to more than 20 different countries around the world.
On 2009, Mieco put another breakthrough after it's product had been certified the Japanese Industrial Standards, JIS 5908 on April 2009, putting a strong confidence on the quality and reliability of products. Then Mieco went further to be certified with California Air Resource Board (CARB) Phase II in January 2011, demonstrating the compliance of Mieco's composite wood products with California Code of Regulations for the US Market.
As of the 2Q of 2014, Mieco's revenue shot up to RM 88million, which is a RM12 million increase from the previous corresponding quarter. Mieco had netted an EPS of 1.44 cents, and will be looking to return into the black for FYE 2014 soon. With Mieco trading at a 62% discount from it's NTA of RM 1.21, Mieco definitely had a great prospects for a row of capital growth.
Mieco's fortune came when weather forecast analysis had predicted on a destructive typhoon that could be visiting Japan after a deadly Typhoon Haiyan that had stormed parts of Philippines into a wreck. The forecast had sparked the higher orders of chipboard that will be needed in the wake of the reconstruction after the aftermath.While Typhoon Phanfone had done it's damage, another follow up by Typhoon VongFong had definitely added salt into the wounds as more than 200,000 citizen staying at Okinawa island had been ordered to evacuate their houses as the huge storm rip the roofs and walls of the houses. Although the storm had seen a reduce in speed, it is still destructive enough to uproot trees and put more than 60,000 homes without power supply.
A space view on the Typhoon VongFong heading towards Tokyo which will be landing on Tuesday.
I believe that Mieco will be an interesting counter to be look at currently before the mass media starts to unveil the damage that had brought to Japan from Typhoon Phanfone and Typhoon VongFong. Japan is prepared and ready to rebuild their cities after the aftermath from the typhoons.
Mieco will be of a good outlook with the following pointers
- Strong beneficiaries of the reconstruction of typhoon stricken cities and town.
- Certified industrial products by Japanese Industrial Standard - JIS 5908.
- Stronger revenue on 2Q 2014 with higher book orders, Mieco looking to turn into the black for FYE 2014.
- Trading at 62% discount from NTA of RM 1.21.
Mieco will be looking to see a quick challenge at RM 0.50, and a short term price will see Mieco looking at RM 0.55 to RM 0.60. Should Mieco being able to maintain and continue to grow it's sales, Mieco will be looking to settle at the range of RM 0.80 in a longer term outlook.
Join the typhoon? You decide.
Bone's short term TP: RM 0.55
Cheers and have a nice day
Regards,
Bone
http://bonescythe.blogspot.com
