Evergreen – Dividend payment to continue Outperform

Evergreen – Dividend payment to continue Outperform
Visit Note- 4Q09 capacity utilisation is estimated to be at 78% (+5% qoq) while its current capacity utilisation stands%D�bove 80%. The improvement was due to rising demand mainly from supply shortages. Evergreen remains%D�onfident of achieving more than 80% capacity utilisation in FY10.- Average selling prices increased by US$5/m3 from 4Q09 for 1Q10 orders. Average selling prices for orders received in Dec 09 increased by US$5/m3, which implies that 1Q10’s average selling prices could hover%D�round the US$245/m3 to US$250/m3 levels. Given the current outlook, management is confident thatprices would hold firm at current levels.- Rising commodity prices not a concern. Evergreen expects rubber wood log and glue prices to remain firm%D�uring the year, as historically, these raw materials have generally been relatively stable.- Currently dormant Indonesian plant would restart its operations in 2Q10 given that Evergreen is in final negotiations with its 49% JV.