Evergreen Fibreboard Berhad is a Malaysia-based company engaged in the manufacturing of medium density fiberboard (MDF) and wooden furniture (knockdown). The Company has four geographical segments: Malaysia, which involves manufacture of medium density fibreboard, wooden furniture (knock down), particleboard, glue, resin, as well as trading and managing of plantation; Thailand, which involves production and distribution of medium density fibreboard; Indonesia, which involves manufacturing of medium density fibreboard, glue and resin, and Singapore, which involves manufacturing, trading and sales of wood products. Its subsidiaries include Allgreen Timber Products Sdn. Bhd., Siam Fibreboard Company Limited, GRE Energy Co. Ltd, ECO Generation Co. Ltd., Evergreen Hevea Resources Sdn. Bhd. and Evergreen Adhesive & Chemicals Sdn. Bhd. On November 1, 2011, its subsidiary Evergreen Decor Products (M) Sdn Bhd, was placed under voluntary winding up.
The company has suffer on numerous calamities both financially and operationally in the past year.
The company will turn-a-round because of
One The government announced that it will ban the exports of rubberwood effective 1 Jul 2017, to address the shortage of raw materials faced by Malaysia’s furniture industry.
Two Malaysia’s rubberwood exports have grown by a CAGR of 13.9% from 2010-2016. Apart from rising rubberwood exports, we note that the rise in rubberwood prices YTD was also driven by less-than-favourable weather condition, which has resulted in rubberwood shortage and higher rubberwood prices YTD. This has, in turn, resulted in higher production cost among the wood-manufacturing players in Malaysia.
Three Strengthening of the greenback (further tightening by the US Fed).
Verdict
I have sold my all my portfolio shares, including Liihen, Protasco, Jaks, Eversendai, Century Logistics to go all in on Evergreen. I am very confident Evergreen will rise by 3 folds.
3 reasons why I bought Evergreen
One Evergreen's share price is all-time-low.
Two Evergreen's financial results will improve significantly in 2H 2017.
Three There is only one share in Bursa Malaysia that meet both criteria One and Two above. The answer is Evergreen.
Conclusion
I am very very rich. I do not need you to buy to push up Evergreen's price. If you wish to buy, you are buying at your own risk. This is not written to promote my stock pick. I am egoistic and rich, but I write this article with noble intention to teach people how to earn money.
http://klse.i3investor.com/blogs/veryveryrich/126501.jsp
