EVERGRN (5101) - RHB Research maintains Buy on Evergreen
KUALA LUMPUR: RHB Research has maintained its Buy call on Evergreen with a target price of RM1.11 and remained positive on the group as it could turn around this year.
In a note on Wednesday, the research house said Evergreen announced that it disposed of its wholly-owned subsidiary, Evergreen Heave Resources SB (EHR), to Muhammad Syafiq bin Zainal and Nurul Azleen binti Zainal for RM10.
EHR is Evergreen's arm to source for logs and is neither active in its business operation nor a key contributor to its profitability.
"We are upbeat on this development as it has removed the potential risk of a loss in a lawsuit that could have cost over RM21.7mil," it said.
To recap, Naza claimed that EHR breached the chip logs sales and purchase agreement for failing to harvest, purchase, take delivery and pay for chip logs of 300,000 metric tons (MT) at a fixed price of RM95/MT from Naza within 30 months from the date of the agreement.
"Naza is claiming for losses of over RM21.7mil from EHR. As the disposal came into effect, it has removed the uncertainties of a potential risk of a lawsuit for Evergreen," it noted.
http://www.thestar.com.my
KUALA LUMPUR: RHB Research has maintained its Buy call on Evergreen with a target price of RM1.11 and remained positive on the group as it could turn around this year.
In a note on Wednesday, the research house said Evergreen announced that it disposed of its wholly-owned subsidiary, Evergreen Heave Resources SB (EHR), to Muhammad Syafiq bin Zainal and Nurul Azleen binti Zainal for RM10.
EHR is Evergreen's arm to source for logs and is neither active in its business operation nor a key contributor to its profitability.
"We are upbeat on this development as it has removed the potential risk of a loss in a lawsuit that could have cost over RM21.7mil," it said.
To recap, Naza claimed that EHR breached the chip logs sales and purchase agreement for failing to harvest, purchase, take delivery and pay for chip logs of 300,000 metric tons (MT) at a fixed price of RM95/MT from Naza within 30 months from the date of the agreement.
"Naza is claiming for losses of over RM21.7mil from EHR. As the disposal came into effect, it has removed the uncertainties of a potential risk of a lawsuit for Evergreen," it noted.
http://www.thestar.com.my
