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Supermax has the best profit growth rate - Koon Yew Yin

Koon Yew Yin
Publish date: Mon, 14 Sep 2020, 08:28 AM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.

All materials published here are prepared by Mr. Koon Yew Yin

Comfort recently announced its EPS of 7.17 sen in its 2nd quarter ending July. Its performance was Q on Q 162% and Y on Y 501%.

Rubberex’s EPS 8.69 in its 2nd quarter ending June. Its performance was Q on Q 148% and Y on Y 858%. 

Top Glove’ EPS 13.59 in its 3rd quarter ending May. Its performance was Q on Q 200% and Y on Y 366%.

Supermax’s EPS 30.58 sen in its 4th quarter ending June. Its performance was Q on Q 462% and Y on Y 2,552%.

This comparison shows that Supermax has the best profit growth rate. Supermax has its own brand and sale outlets in many major US cities and in several other major cities around the world. It can easily increase its selling price. 

Comfort and Rubberex could not increase their selling price for its gloves so easily because they both are selling their gloves through their agents. At Comfort’s AGM, the CEO said that the company sold all its gloves to its agents with a price increase of 5 to10% every month.  

Comfort and Rubberex should collaborate with Supermax for mutual benefit. To make more profit, Comfort and Rubberex should sell their gloves to Supermax at a higher price than they are selling to their agents and Supermax would have more gloves to sell to make more profit. 

Explanation note: to calculate the profit % increase for example:

Supermax 4th quarter EPS 30.58 sen and its 3rd quarter EPS 5.42. 30.58 divided by 5.42 = 564%. Net profit Q on Q increase 564% – 100% = 464%. 

Supermax 4th quarter EPS 30.58 and its 4th quarter of previous year EPS 1.15. 30.58 divided by 1.15 = 2659%. Net profit Y on Y increase 2659% - 100% = 2559%.

You can use the same method to calculate the profit % increase for Comfort, Rubberex and Top Glove.     

 

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