Hevea Fungi business is starting to grow.

Last year 4 quarters: RM845k revenue

Q1 2020: RM357k revenue

Yes we know that the revenue is still insignificant, but if the Fungi business slowly pickup the momentum, Hevea will shine again. Even particleboard business, Hevea is the only one in Bursa that still reported Positive results in difficult times.

Management is creative and competent.

 hope for the best

The price has dropped by about half since a year ago. Has the business prospects dropped by half? Over the past 13 years, it achieved a mean ROA of 6% compared to the mean of the Bursa furniture sector that averaged 5% as per Which are the better stocks in Bursa Malaysia furniture sector? Of course you have to dig deeper but at first look, the company has a good track record. 

I have 2 reference companies with detailed analysis - Eksons and Taann - that I used when hunting for companies in the timber/wood-based sector. With this lens, I found that Hevea ROE pre-2018 was much better than these reference companies. But post-2018, Hevea ROE lies in between these 2. From a fundamental perspective, I would focus on Taann.