Saturday, January 18, 2020

Did HeveaBoard CEO execute what he planned?


Behind the Numbers —— Have a story.

By getting a clue from the below statement, it states that HeveaBoard CEO Mr. Yoong Hau Chun said that HeveaGro Sdn Bhd (a new business venture, cultivation of King Oyster mushroom) is aiming for a RM 3 million profit on the back of RM 10 million revenue for FY18.

Did HeveaBoard CEO execute what he planned? Let's see the Figure 1.0 that the cultivation of King Oyster mushroom segment recorded a RM 0.418 million revenue for FY18 (against the budgeted revenue of RM 10 million —— the actual result was very far behind the budgeted result). Was his business venture plan viable?


『Extract』The Edge, 5th September 2017


Going forward, HeveaBoard is seeking to add value to its existing core business by venturing into cultivation of gourmet fungi, through its new wholly-owned subsidiary HeveaGro Sdn Bhd.


With the company currently producing 100 tonnes of low-quality raw materials daily, which are currently sold to boiler users at a discount, Yoong said the company plans to utilise its existing waste for King Oyster mushroom cultivation.

“It (mushroom cultivation) not going to be a very big revenue [or] profit generator, but I think, on the margin side, it’s quite attractive because we are able to use our own raw materials. I also think that there’s a very good prospect for healthy food [and] organic produce,” said Yoong.

While HeveaBoard has allocated about RM10.5 million for factory and equipment to cultivate King Oyster mushroom, Yoong said the company is aiming for a RM10 million revenue and RM3 million profit for FY18.

Yoong said the factory should be ready by year end and HeveaBoard is hoping to start production in the first quarter of 2018.

Source: HeveaBoard faces challenges to sustain growth


Figure 1.0 Cultivation and Trading of Fungi Segment


2 comments:

  1. Hi M.Rao,

    As at 1st April 2019, the CEO, Yoong Hau Chun's shareholding was direct: 0.14% and indirect: 33.05% respectively.

    Source: Annual Report 2018 | page 168

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