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Evergreen Fiberboard Bhd
Evergreen (Fundamental: 0.75/3, Valuation: 1.2/3) was picked by The Edge Market’s Stocks with Momentum three times since December 31, 2014. Its share price has risen a whopping 46.3% over this period while volume has also far exceeded its 200 trading days average.

Evergreen is one of the world’s largest producers and exporters of wood-based medium density fibreboard (MDF) and particleboard, with annual production of over 1.3 million cubic metres. It has manufacturing plants in Malaysia, Thailand and Indonesia. 

With export — mainly to the Middle East and Southeast Asia — accounting for over 70% of sales, the company is likely seen as a beneficiary of the strengthening US dollar.

It bears to note though that the industry is very competitive. Despite having a strong management team, Evergreen made a net loss of RM43 million in 2013 and cumulative losses of RM14 million in 9M2014. It has net debt totaling RM252 million.

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This article first appeared in The Edge Financial Daily, on January 27, 2015.

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