GREENYB (0136) - Greenyb - A Greener Touch
Green Yield Berhad is primarily involved in the sector of providing agro-technology to rubber plantation and also the manufacturing and marketing of artstone plant pots.
However, it had not been way now as Greenyb is currently heading for an expansion exercise and growth that will start to bring the company into greater heights in the coming day ahead under the lead of group managing director, Mr Tham Foo Keong.
Let's have a look at the current share price of Greenyb.
A quick look at the share price of Greenyb will be seeing Greenyb is currently trading at the solid support trading range of RM 0.27 to RM 0.30. Greenyb had saw a strong going momentum back then which had started since July 2014, and hit a peak at RM 0.495. Once Greenyb successfully crack above the RM 0.30 mark, Greenyb will be looking to channel it's way towards the range of RM 0.40 before testing further.
Currently, the momentum on Greenyb is starting to set it's mark again. With the start of the monetary boost program from the European region, the Asian market will be going to see an inflow of funds to participate in the Asian capital markets.
Greenyb - Of Rubber and Pots
Green Yield Berhad had been always striving to expand their business greater and tap into different products and services in the agricultural sector. Under the careful leading of Group MD, Mr Tham Foo Keong, Greenyb had been very careful in their dealing and expansion, making sure that every move is good and within their means of control. Currently, Greenyb had tapped into developing their own rubber plantation as well with a joint venture of 3000 acre in Kelantan in which Greenyb had a 30% share of it, while another 1000 acre is solely own by them, totaling 4000 acre of land, in which 2400 acre of it are developed and will be starting to see yield starting end of 2016.
With their implied agro technology in the rubber plantation, Greenyb can be seeing around 2.4 ton from 1 hectare (1 hectare = 2.47 acre), which can generate around RM 25000 a year. A full grown 4000 acre of rubber plantation could be able to bring a potential RM 40 million in revenue a year.
According to estimation, Greenyb will be seeing an additional RM 6m of revenue from the developed rubber land come 2017.
With Greenyb yield enhancer, this will further increase the rubber plantation yield because of the effectiveness it brings to the tapper. While a conventional method will see a rubber tapper tapping 300 to 400 trees a day, with Greenyb yield enhancer, the rubber tapper can tap 900 to 1000 rubber trees, boosting the productivity by more than 150%. However, the yield enhancer will only be effective for older trees.
Greenyb is also currently actively expanding it's art stone plant pot production that had been highly sought after in the export markets.
Currently, the production of the art stone plant pot had been running in a full scale, and the latest acquisition of factory land in Selagor will be used cater for more demands in the market as well as for other production line.
The wide range of art stone plant pot had been a hot demand in the US and European market. With the European quantitative easing measure adopt by the ECB, Europe will be looking to see more economical activities, which will be indirectly helping to bring up the sales of these art stone plant pots in the foreign land.
According to Mr Tham Foo Keong, he view the rubber market as a gold mine as he sees the continuous rising demand of natural rubber in line with the rising highway mileage as more highway are builds around the world and more cars are driven as well. The production of natural rubber still need to catch up with the rising demand on the rubber.
On the other side, the company had also a good property valuation reserved that is dated back to as long as 1997.
With Greenyb current net cash position of approx RM 12 million sitting in it's bank, Greenyb will be an interesting take in the coming days with its good prospect in the coming future. Greenyb will also be anticipating a stronger quarter that is going to be released around the corner.
Bone's short term TP : RM 0.35
Cheers and have a nice day
Regards,
Bone
http://bonescythe.blogspot.com/
