Technical tracker - HLIB Retail Research – 31 March 2022 Th | HLeBroking

Technical tracker - HLIB Retail Research – 31 March 2022

Thematic: WOOD MANUFACTURING - Sustainable bull cycle for 2022

As China, Canada and Russia were ranked top five exporters of wood products worldwide in 2019, earlier trade wars between US-China, US-Canada and the latest Russia-Ukraine conflict (leading Russia to ban the export of wood and forest products to the West) have exacerbated the global supply demand imbalances. The combination of restricted supply and robust demand from the US had pushed up the price of panel boards, including medium-density fiberboard and plywood. Despite skyrocketing raw material costs due to ongoing supply disruptions, as well as the foreign labour shortage due to border closures, we note that the increasing quantum of wood products ASPs had mostly offset the hike of raw material prices. All in, we believe the strong profits from the panel board players are here to stay, at least for 2022. We tactically prefer companies producing panel boards as they are deemed to be the prime beneficiaries from the commodities upcycle.

Stock picks:

EVERGRN- A prosperous year ahead
Technical Outlook: Creating higher high
Collection range: RM0.60-0.62-0.65
Upside targets: RM0.76-0.80-0.83
Cut loss: RM0.58

FLBHD-Still overlooked by the market
Technical Outlook: Pending a new wave
Collection range: RM1.33-1.37-1.41
Upside targets: RM1.64-1.74-1.87
Cut loss: RM1.28

HEVEA: A blowout FY22; Poised for a bullish LT downtrend line breakout
Technical Outlook: Pending a bullish downtrend line breakout
Collection range: RM0.45-0.47-0.50
Upside targets: RM0.54-0.58-0.62
Cut loss: RM0.43

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Technical tracker - HLIB Retail Research – 31 March 2022

主题：木材制造 - 2022 年可持续牛市周期

由于中国、加拿大和俄罗斯在 2019 年位居全球木材产品出口前五名，美中、美加之间的贸易战以及最近的俄乌冲突（导致俄罗斯禁止向美国出口木材和林产品）加剧了全球供需失衡。在供应受限但美国强劲的需求下，木板价格被推高其中包括中密度纤维板和胶合板。尽管供应中断导致部分原材料成本飙升，以及边境关闭导致外国劳动力短缺，但我们注意到木制品平均售价的上涨幅度足够抵消原材料价格的上涨。我们认为木板厂商的强劲利润将持续存在，至少到2022 年。因此，我们更倾看好生产木板的公司，因为它们被认为是大宗商品上升周期的主要受益者。

选股：

EVERGRN-繁荣之年
技术展望：创造更高的高点
买范围：RM0.60-0.62-0.65
上行目标：RM0.76-0.80-0.83
止损：RM0.58

FLBHD-仍被市场忽视
技术展望：等待新一波涨势
买入范围：RM1.33-1.37-1.41
上行目标：RM1.64-1.74-1.87
止损：RM1.28

HEVEA：22 财年业绩标青；准备突破看涨的 LT 下降趋势线
技术展望：等待突破下降趋势线
买入范围：RM0.45-0.47-0.50
上行目标：RM0.54-0.58-0.62
止损：RM0.43

FULL REPORT : https://www.hlib.hongleong.com.my/Published/Download.ashx?ArticleId=18533&mode=view

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