HeveaBoard moves to ensure sustainability
Ho Chung Teng | 06 Apr 2018 00:30
COMPETITION, price war, labour shortage, high raw material prices and a stronger ringgit against the US dollar are the main factors which dragged particleboard manufacturer HeveaBoard Bhd’s net profit down by 20.28% in the financial year ended Dec 31, 2017.

HeveaBoard’s MD Yoong Hau Choon finds it difficult to predict earnings growth for the next few years, especially with the ringgit to-date (April 3) having strengthened 12.72% against the US dollar. 

This does not augur well for the company as a stronger ringgit translates to lower revenue, which is derived in the US dollar. Currently, more than 90% of its products are exported.

Despite that, Yoong says the company plans to differentiate itself to ensure sustainable profits. “Although (at the current point) the selling price (of particle board) is going down in an irrational way, we still maintain our selling prices or increase some of the prices.

“These are external factors that we can’t control, but doing this should help us mitigate the impact to a certain extent,” Yoong tells FocusM.