Highlights

Worthy Stocks

Author: dollardollarbill   |   Latest post: Mon, 1 Jun 2020, 2:06 PM

 

RGTBHD (9954), the newly discovered Covid-19 thematic play [$$bill]

Author:   |    Publish date:


RGTBHD (9954), the newly discovered Covid-19 thematic play [$$bill]

 

Covid-19 has created a new normal with people now having to live a more hygienic lifestyle.

 

Companies around the world (shopping malls, offices, factories, etc.) are following suit with this new normal by installing hygiene care products such as sanitiser dispensers and hand soap dispensers.

 

RGT Bhd (9954, not RGTECH) latest 3Q quarterly report (announced 19 May 2020) shows that it is set to benefit from this new normal:

 

Source: https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3051171

 

RGT Bhd’s Rapid Growth Technology Sdn Bhd is already an established front runner in these hygiene care products.

 

Rapid Growth Technology makes those products for its key customer Newell Brands Inc, which owns Rubbermaid Commercial Products:

Source: https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=2816960

 

 

The hygiene care products that RGT makes:

See: https://www.rubbermaidcommercial.com/washroom/wall-mount-automatic-skin-care/

 

 

 

 

RGT has a good and long standing relationship with that key client.

 

Source: https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=2816960

 

RGT acquired 60% of Rapid Growth Technology in May 2018 and is currently in the final stages of acquiring the remaining 40% stake. This would allow RGT to fully consolidate the profits.

 

 

Medical devices

Another interesting angle with RGT is its venture into the medical device industry, a favourable and hot sector amid the current Covid-19 pandemic.

 

Source: https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=2980448

 

RGT looks ready to bank on these antidote injection devices for a US customer (Read: https://www.thestar.com.my/business/business-news/2019/11/25/rgt-to-spend-rm20mil-on-plant-expansion)

 

This somehow brings back memories of Supercomnet Technologies (Scomnet), which is now seeing good fortunes from its medical segment.

 

RGT’s capacity expansion into medical is in progress with its recent 57k sq ft land acquisition situated next to its existing factory in Bukit Mertajam, Penang (https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3020091)

 

This should auger well for RGT's future growth.

 

 

Fundamentally decent

 

Rapid Growth Tech is actually quite a fundamentally sound company. In FY2019 ended June, it had strong balance sheet with RM21.3mil cash against RM5.95mil debt. Also, net profit margin and cash flow from operations are decent.

 

Source: https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=2980448

 

 

Likewise, RGT Bhd latest balance sheet is good too with cash of RM29.3mil and total borrowings of RM3.8mil. That’s a net cash of RM25.5mil which is attractive relative to its RM100+mil market cap.

 

All in all, RGT Bhd is an interesting stock to monitor especially amid the new normal.

 

 

 

 

 

 

Share this
Labels: RGTBHD

Related Stocks

Chart Stock Name Last Change Volume 
RGTBHD 0.325 0.00 (0.00%)

  Ckk2266 likes this.
 
wakarimas touched medical field now is such a brilliant company policy.
22/05/2020 2:05 PM
profit profits why no coffin maker stock ? so many people died .
22/05/2020 5:03 PM
stockraider Last time got Nirvana stock...now already privatise, did u buy ah ??

Posted by profit profits > May 22, 2020 5:03 PM | Report Abuse

why no coffin maker stock ? so many people died .
22/05/2020 6:09 PM
wakarimas aiyo....leave some money for others people lah you guys. hahhaha. This Rgtbhd enough for makan besar after next quarter report show explosive profit!
23/05/2020 3:55 PM
Heavenexile good to know that RGTBhd will do well despite their single major offtaker is not sounding too hot lately

https://www.businesswire.com/news/home/20200501005158/en/Newell-Brands-Announces-Quarter-2020-Results
25/05/2020 10:27 PM
dollardollarbill Newell Brands Inc 1Q 2020

Rubbermaid Commercial Products (sanitizer and hand soap dispenser) is under Newell's Commercial segment, which is doing well due to covid-19.

https://ir.newellbrands.com/events-and-presentations

"Consumer demand patterns. As the quarantine phase of the pandemic has taken hold, consumer purchasing behavior has strongly shifted to certain focused categories. While certain of the company’s businesses benefited from this shift in the first quarter, including food and Commercial"


Listen to their 1Q 2020 conference call webcast (https://ir.newellbrands.com/events/event-details/first-quarter-2020-earnings-webcast)

Go to 8:00:

"Rubbermaid Commercial Products also saw an improved topline trajectory in 1Q with strong demand for hand sanitizer and washroom products..."

15:14:
"Our Commercial business is also poised to have a strong second half. They have a strong order book and we believe we'll be able to fulfill these orders in Q3 and Q4 as supply constraints ease....."

57:33:
"Commercial in the first quarter was clearly a big winner..... the order book is very full. But there were especially on things like sanitizer and stuff......But as we are expanding capacity, we think that over time we'll be able to fulfill that."
26/05/2020 11:02 PM
paperplane shhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh
01/06/2020 2:15 PM


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
View candlestick stock charts with Technical indicators
MQ Affiliate
Be rewarded by being an MQ Affiliate
 
 

1868 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 SCOMNET 1.110.00 
 KOTRA 3.250.00 
 UCREST 0.180.00 
 EITA 1.250.00 
 PUC 0.1450.00 
 WILLOW 0.4750.00 
 EAH-WE 0.0050.00 
 IRIS 0.160.00 
 HSI-C9L 0.0150.00 
 HOOVER 0.450.00 

FEATURED POSTS

1. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!
2. MQ Affiliate – A smarter way to earn more rewards MQ Trader Affiliate Program
3. MQ Affiliate – How to become an effective affiliate MQ Trader Affiliate Program
4. MQ Affiliate – Upgrading to Affiliate Partner MQ Trader Affiliate Program
Partners & Brokers