KLSE: RUBEREX (7803)       RUBBEREX CORP (M) BHD MAIN : Industrial Products
Last Price Today's Change   Day's Range   Trading Volume
0.65   +0.025 (4.00%)  0.615 - 0.66  2,264,000
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Market Cap: 164 Million
NOSH: 252 Million
Avg Volume (4 weeks):5,509,815
4 Weeks Range:0.555 - 0.79
4 Weeks Price Volatility (%):
52 Weeks Range:0.42 - 0.79
52 Weeks Price Volatility (%):
Average Price Target: 0.67
Price Target Upside/Downside: +0.02

Financial Highlight

Latest Quarter | Ann. Date 30-Sep-2019 [#3]  |  26-Nov-2019
Next QR | Est. Ann. Date: 31-Dec-2019  |  26-Feb-2020
T4Q P/E | EY: 22.22  |  4.50%
T4Q DY | Payout %: 1.54%  |  34.18%
T4Q NAPS | P/NAPS: 0.8  |  0.81
T4Q NP Margin | ROE: 3.32%  |  3.66%


Date Subject
26-Nov-2019 COMMENTS ON RUBBEREX CORPORATION (M) BERHAD (7803) - louisesinvesting

Business Background

Rubberex Corp (M) Bhd is principally involved in an investment holding. The company through its subsidiaries manufactures and sells rubber gloves. The company offers a wide range of industrial and safety gloves, nitrile gloves, household rubber gloves and disposable vinyl and nitrile gloves. It operates in three principal geographical areas - Europe, North and South America, Asia and rest of the world. Europe contributes the vast majority of total revenue.
Analyze this stock with MQ Trader system

  3 people like this.
Lim Tek Wai Lets make it happen, keep on buying ! Slowly but surely yeah
17/08/2018 11:31 AM
Jolin Lai Chi Pet will hit 75 cents soon...............
17/08/2018 12:42 PM
Jordan Khoo Wow! earn more again! good stock, i have earned a lot to pay my bills.
20/08/2018 11:36 AM
YgAriff I am going to buy this counter bit by bit.
17/09/2018 11:04 AM
freddiehero mayb good idea
17/09/2018 11:52 AM
Jolin Lai Chi Pet very high chances.............b'cos rubberex got very big production plant in malaysia and also china
26/10/2018 12:55 PM
William Tan The plant in China will close and shift back to ipoh you don't know?
01/11/2018 5:43 PM
Jeffreyteck Disposal of China investment at a loss. TP35.
03/01/2019 7:35 AM
commonsense Ruberex is the cheapest nitrile glove manufacturing company in Malaysia with a PE multiple of only 8.5x (using 12 months profit to shareholder). However, please take note that their production output is really small compared to other glove makers with capacity output of only 1.5bil pieces annually vs Kossan (smallest among the top 4) of around 25bil pieces annually. With the small capacity there is a limit to the type of clients that the company can approach mainly due to its higher per unit cost compared to other bigger players, which limit the company’s ability to compete on pricing.

In terms of financials, it seems that the company earnings peaked back in FY16 with PAT of RM21mil. In FY17 profit fell to only RM13.3mi and in FY18, the company is expected to only able to reach a profit of around RM10mil. At the current price, the PE valuation is actually at 11.5x which is still not that expensive vs the gloves industry average. However, it is still to be seen if the company can record any growth in FY19 given that all the big players are expected to bring in new capacity supply this year (almost 20bil pieces per year of new capacity combined). All gloves maker might need to compete in terms of pricing to attract new customers to fill in their now bigger capacity and in general the one that usually lose out are the smaller players.

The company has actually a quite strong balance sheet with only RM 49.7mil debt vs a cash reserve of RM23.6mil. This brings the total net gearing to only 9.5%. The company can easily expend its capacity or undertake any new project by taking more debt in the future. In addition, the companies also have shown abilities to generate very good cash flow from its operation (almost RM30mil in 9m18).

If you are looking to diversify your portfolio outside of Rubberex (due to its weak earnings growth outlook) I would recommend you to look at MBMR.

MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.7x PE (based on target FY18 profit of RM145mil. 9m profit is already RM106mil). PB is low at only 0.6x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.

For FY19 growth will be driven by the still high demand of new Myvi and the newly launched SUV Aruz and also the newly revamp Alza in 2H19. I am projecting a profit to shareholder of RM160 mil for FY19 which at the current price values MBMR at only 6x PE.

Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. Most analysts have a TP of above RM3 for the company with Hong Leong being the lowest at RM3.13 and Maybank the highest at RM4.50.

Good luck.
17/01/2019 12:13 PM
LouiseS Rubberex's earning performance has been declining in last five years, whereby its earning per share overall decreased from 4.46 sen to 3.44 sen. At current share price, P/E ratio is high (20.55). Notably its closure and sale of manufacturing plant in China in 2018 also led to losses of ~RM68million.

26/11/2019 4:48 PM
LouiseS Based on comparison of 7 major glove manufacturers in Malaysia, it is found that currently Rubberex is not ranked as the TOP 3 glove manufacturers worthy to invest in. Rubberex’s performance indicators mostly lag behind other glove manufacturers such as Top Glove, Hartalega and Kossan Rubber. More improvement is needed to increase its competitiveness.

27/11/2019 5:27 PM
Hush77 Still low price compare to other rubber stock....
Rubberex can become T-rex and move much higher soon
28/01/2020 11:14 AM
Zahir1999 dah flyyy
28/01/2020 4:03 PM
STUPIDPUNCAKKPS BOUGHT RUBEREX 0,67..by friday will be 0.85
28/01/2020 4:06 PM
STUPIDPUNCAKKPS by friday more deaths and once first victim out of America announced ruberex will jump pretty high!
28/01/2020 4:07 PM
Zahir1999 hahahaha hope can reach 0.90 soon
28/01/2020 4:48 PM
Hush77 Mmg bagus..
28/01/2020 5:45 PM
ramada Comparison P/E ratio among glove makers in Malaysia.
28/01/2020 5:53 PM
GooShem tp 2
28/01/2020 6:17 PM
Hush77 just hold till mid of year... the virus not gonna hilang or go away overnight
29/01/2020 9:59 AM
PresidentRotiCanai Buy some to hedge my portfolio.. Virus still around
29/01/2020 12:05 PM
abcb Take quick profits and very sure will come down to 0.65 soon
29/01/2020 12:09 PM
abcb 80% of manufacture products are use for industrial only nothing related with coronavirus
29/01/2020 12:13 PM
abcb what goes up must come down
29/01/2020 12:25 PM
abcb TP 0.60
29/01/2020 12:26 PM
ramada Buy low sell high. Looks like people already forgot this rule, especially at yesterday.
29/01/2020 12:27 PM
abcb Profit margin only single digit nothing worth to chase
29/01/2020 12:29 PM
Squirtle wuhan virus increase kau kau
need buy more rubber
30/01/2020 3:53 PM
Squirtle where Khazanah Epf kwap
All fund manager sleeping
Malisia dieing fund manager sleeping
31/01/2020 4:10 PM
Junqi This share is going to fall to 50-60 ct.
Another dull company.
01/02/2020 6:42 PM
ramada Sold at RM0.71. I thank to you, RUBEREX.
03/02/2020 9:12 PM
abcb Manufacturing of industrial gloves product and nothing deal with surgical gloves
05/02/2020 10:51 AM
Trouble Huat wonder tsh will promote this on today fb live. haha. dint buy but watching show.
10/02/2020 6:44 PM
Newbieinshare Haha i bet this counter last friday. Terkejut it shot up last min. Lol
10/02/2020 6:55 PM
Trouble Huat nice luck u have. haha
10/02/2020 7:13 PM
Bennychua007 What u guys think for tmr ?
10/02/2020 9:09 PM
kytan According to him, the company currently has orders in hand exceeding six months of full capacity. It is considering further factory expansion in 2021 if business is good.

10/02/2020 9:11 PM
GooShem tp 2
10/02/2020 10:39 PM
Newbieinshare Cheers and good luck guys. Tomorrow may have some profit takers
10/02/2020 10:42 PM
Bennychua007 No target price .....Up down up down ..Don't know what is the best TP
11/02/2020 12:01 AM
Thinkcarefully PE >23. Not attractive
Dividend 1.4%.No attractive
NAPS 80cts. Not attractive. I will give this company a miss.
Also it is not into making surgical gloves.
11/02/2020 6:37 PM
jackfruit Buying Rubberex is for future earing growth not yesterday earing. With the coronavirus going on what you think of their earing. Your guess.
11/02/2020 7:10 PM
12/02/2020 8:08 AM
EatCoconutCanWin ruberex PE still low if compare to others glove counter. at least PE30
12/02/2020 9:45 AM
abcb Oil prices rise about 1% ,up from 13 month low as coronavirus cases slowed in China,easing some concern over the potential for lengthy oil demand destruction
12/02/2020 3:54 PM
abcb President Xi Jinping urges Chinese to have confidence in their ability to fight coronavirus outbreak in short term
12/02/2020 4:03 PM
abcb China reported its lowest number new cases of coronavirus since late January
Leading some to suggest the outbreak may plateau soon
12/02/2020 10:24 PM
Bigbull99 Don't based on 1 day result to determine. Take a look at today's results yet?
13/02/2020 5:47 PM
Trouble Huat Something coming. Hehe
14/02/2020 2:33 PM
MingGoon collected 0.66
TP 0.75
17/02/2020 4:16 PM


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