Koon Yew Yin's Blog

Author: Koon Yew Yin   |   Latest post: Mon, 25 Jan 2021, 10:41 PM


Supermax’s easily achievable target price - Koon Yew Yin

Author:   |    Publish date:

Supermax recently reported its 1st quarter, ending September, earning per share (EPS) of 30.58 sen. Its EPS for the previous quarter, ending June was 15.29 sen. The reason for the company to be able to increase its profit by 100% is due to surge in demand for medical glove for the coronavirus prevention.

Due to Covid 19 pandemic, the demand for medical gloves far exceeds supply and all the glove makers can easily increase their selling prices to make more and more profit.

Supermax is making more earning per share (EPS) in every quarter since the pandemic began in March, than any of its peers, namely Top Glove, Kossan, Hartalega, Comfort Glove, Care Plus and Rubberex, etc. as you can see from their price charts.

The reason why Supermax can make more EPS in every quarter than any of its peers is because it has its own brand and sale outlets in many cities in US and in many other countries around the world. Smaller glove makers cannot sell their glove at higher price than Supermax because they have to sell their gloves through agents or middle men.  

To be very safe and sure of making money, as an investor, I assume the company does not increase its selling price for the whole financial year.

Its total EPS will be 4 X 30.58 sen = Rm 1.22

My target price, based on PE 10, will be Rm 12.20 which is easily achievable.

Statistics record shows that 80% of the investors in the stock market lose money, 10% can break even and only 10% are real winners. In fact, since the current pandemic is affecting almost all the listed companies except medical glove and medical products for the coronavirus prevention, there should be more losers.  Consequently, all the big institutional investors and investment banks which have to invest in many counters in their portfolio would be losing badly. They would have to sell all their non performing counters to buy medical glove and medical product stocks.

I have taken extra effort to explain clearly why investors should buy Supermax so that even all the losers can make back some money.

I am sure its profit for the 2nd quarter will be better than its 1st quarter which should be announced in about 2 months.

Currently Supermax is selling at Rm 8.16. Investors should just buy and wait patiently     


Share this

Related Stocks

Chart Stock Name Last Change Volume 
SUPERMX 6.56 -0.09 (1.35%) 14,049,000 

  Be the first to like this.
areef67 What do you think about Cypark? I feel it’s strong fundamentally with the only concern that it’s very high geared
24/11/2020 11:17 AM
Ricky Yeo There's probably more ppl end up dead trying to EPS x 4 x 10 than profit from it.
24/11/2020 11:22 AM
CCCL Your countless relentless effort fails to move the gloves stocks. Like mencurah garam di laut. Why? These are all Mega counters. If you try to go back to your past record, small cap with your golden rule works well...
24/11/2020 11:47 AM
freeze789 How about your wonderful prediction on AT??
24/11/2020 11:54 AM
jackfruit KYY spend so much time on glove stocks and he is going miss plantation, furniture and oil n gas stocks rally.
24/11/2020 11:58 AM
CCCL No horse power. A single horse can’t moves a mega carriage. You needs an army of horses to do it.
24/11/2020 12:03 PM
mf MP PAS bagi 3 pilihan buat Muhyiddin

Diterbitkan Hari ini 9:06 pm
Dikemaskini Hari ini 9:12 pm
Seorang anggota parlimen PAS menggariskan tiga pilihan buat Perdana Menteri Muhyiddin Yassin sekiranya Belanjawan 2021 tidak diluluskan di Dewan Rakyat, Khamis ini.

Menurut Ahmad Fadli Shaari, pilihan pertama adalah mendapatkan perkenan daripada Yang di-Pertuan Agong untuk membubarkan Parlimen, sekali gus mengadakan pilihan raya mengejut.
24/11/2020 9:50 PM
newbie8080 @KYY
Higher EPS of Supermax does not mean, the company is better than Hartalega , Topglove or Kossan.

Factors such as no of share issued is also a consideration. Topglove issued more shares which has a larger denominator than Supermax, thus the lower EPS.
If Topglove has the same no of shares issued as Supermax, the current EPS would be more than RM1.0.

Rather the focus should be the company's annual net profit
25/11/2020 3:34 PM

I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Stock Screener using Technical and Fundamental criteria
MQ Affiliate
Join the MQ Affiliate Program today to earn rewards

574  435  584  558 

Top 10 Active Counters
 PA 0.20+0.015 
 IRIS 0.395+0.025 
 PA-WB 0.14+0.03 
 AT 0.170.00 
 VIVOCOM 0.965+0.13 
 DNEX 0.285+0.005 
 JAKS 0.69+0.015 
 SCIB 2.99+0.45 
 KSTAR 0.115-0.03 
 DNEX-WD 0.055-0.005 


1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!