Stock Name: EVERGRN
Company Name: EVERGREEN FIBREBOARD BHD
Research House: HWANGDBS
Company Name: EVERGREEN FIBREBOARD BHD
Research House: HWANGDBS
HwangDBS Vickers Research is maintaining its "buy" recommendation on Evergreen Fibreboard Bhd with a target price of RM2 despite the company recording lower profits in the fourth-quarter of last year.
The research firm said the company was well positioned to benefit from the economic recovery, as it was the fifth largest medium-density fibreboard (MDF) producer in the world.
It expects MDF prices to rise, going forward, in line with expected stronger demand. "Looking ahead, we expect earnings to improve as glue price should normalise," it said in a research note today.
For the financial year ended Dec 31, 2010, Evergreen posted a higher pre-tax profit of RM115.151 million compared with RM80.752 million chalked up previously.
Revenue increased to RM951.186 million, for the period under review, from RM771.514 million previously.
Meanwhile, OSK Research raised Evergreen's revenue forecast on the back of higher sales and average selling prices.
The research firm said sales would be backed by both local and offshore demand, which would drive up the average utilisation rate to 85 per cent.
"We also see selling prices tick up by five per cent in financial year 2011 as management increases selling prices to pass on the higher cost to customers and to match market demand," it added. -- Bernama
The research firm said the company was well positioned to benefit from the economic recovery, as it was the fifth largest medium-density fibreboard (MDF) producer in the world.
It expects MDF prices to rise, going forward, in line with expected stronger demand. "Looking ahead, we expect earnings to improve as glue price should normalise," it said in a research note today.
For the financial year ended Dec 31, 2010, Evergreen posted a higher pre-tax profit of RM115.151 million compared with RM80.752 million chalked up previously.
Revenue increased to RM951.186 million, for the period under review, from RM771.514 million previously.
Meanwhile, OSK Research raised Evergreen's revenue forecast on the back of higher sales and average selling prices.
The research firm said sales would be backed by both local and offshore demand, which would drive up the average utilisation rate to 85 per cent.
"We also see selling prices tick up by five per cent in financial year 2011 as management increases selling prices to pass on the higher cost to customers and to match market demand," it added. -- Bernama
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