Koon Yew Yin's Blog
The Edge reported Supermax is the top gainer in 2020 - Koon Yew Yin
Koon Yew Yin
Publish date: Sat, 02 Jan 2021, 12:48 PM
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
All materials published here are prepared by Mr. Koon Yew Yin
KUALA LUMPUR (Dec 31): Although the battle with Covid-19 pandemic is still ongoing, Bursa Malaysia certainly has good reasons to celebrate the year 2020.
Firstly, the local market has outperformed its neighbouring bourses with its benchmark index ending the year in the positive zone, except for Vietnam. The FBM KLCI gained 3.5% year-to-date (YTD) to reach 1,644.41 points on Dec 30, while Vietnam's VNINDEX has climbed 14.2% YTD. It is worth noting that the FBM KLCI had declined for two consecutive years since 2017.
In contrast, Singapore's Straits Times Index dropped 11% YTD, followed by the Philippines' PSE Composite Index -8.6%, Thailand's SET Index -8.3%, and Indonesia's Jakarta Composite Index -5.1%.
Share prices went higher in the broader market, as reflected by the bigger gains on Bursa Malaysia Small Cap Index, which went up 10.09%, while FTSE Bursa Malaysia ACE Index, which exceeded the 10,000 mark, has soared 103.5% YTD.
The market capitalisation of all listed entities has ballooned as much as RM104.74 billion against end-2019's, according to Bloomberg data.
Secondly, the stock exchange should also cheer for the return of retail investors who have been absent for over a decade, if not longer. Given the surge in retail interest, the exchange's daily trading volume ballooned to an all-time high of 27.8 billion in August compared with last year's high of 2.51 billion shares.
Bursa's total trading volume swelled to 1.81 trillion as at Dec 30, nearly triple of 2019's annual volume of 613.59 billion. This speaks well for Bursa Malaysia Bhd's earnings.
Rubber glove makers, semiconductor-related counters and vaccine distributors — these are the main theme plays in 2020.
The Edge is taking a closer look at this year's top winners and top losers, which have been grouped according to market capitalisation.
Super big cap (market cap of more than RM10 billion)
There are 37 companies in this category. Supermax Corp Bhd and Kossan Rubber Industries Bhd were not in this category last year. Likewise, so was not the newly listed Mr DIY Group (M) Bhd.
The top four best performers are the big four rubber glove makers, namely Supermax (+802% YTD), Top Glove Corp Bhd (+291% YTD), Kossan (+130% YTD) and Hartalega Holdings Bhd (+120% YTD). They would have recorded higher gains this year if it were not for the news about the roll-out of Covid-19 vaccines most recently. They have collectively gained RM79.42 billion worth of market cap, which is equivalent to 76% of the total market cap increases from all the stocks listed on Bursa Malaysia.
My comment: Due to the Covid 19 pandemic, the demand for medical gloves far exceeds supply. As a result, all the glove maker can easily continue to increase their selling prices to make more and more profit. The number of Covid 19 cases are still increasing more and more every day as shown by the chart below.
Currently US has a total of 20.45 million cases and 354,215 deaths. These figures are still surging.
Supermax is the top performer in 2020
From this report, you can see that Supermax has gained 802% and Top Glove has gained 291% in 2020. Supermax is the top gainer among all the 1,100 listed companies because it has the best profit growth rate. Its EPS was 30.58 sen for its 1st quarter ending September. Its EPS was 15.29 sen for its previous quarter. It made 100% more profit than its previous quarter. It is most likely its 2nd quarter profit will be another new record high which will be announced in Mid-January.
Even if I assume that Supermax cannot increase its selling price for the 3 quarters, its annual EPS will be 30.58 sen X 4 = Rm 1.22. Based on PE 15 its share price should Rm 18.30.
These photos below are showing that all the medical staff are wearing glove to do the vaccination and testing for coronavirus. In fact, additional glove will be required. Unfortunate, many less informed investors are rushing to sell their holdings as if the vaccine will reduce the demand for gloves.
I am obliged to inform you that 90% of my investment is Supermax and 10% is Top Glove. I am not encouraging you to buy or sell because your trading volume will not affect the share price as the daily traded volume is tens of million shares.
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Discussions
Be the first to like this. Showing 50 of 63 comments
Gloves....winter liao.
Many new factories now producing gloves ... Overproduction!
Price of gloves going to drop!
Will drop by 30%
Vaccine in the air....
Soon will be 5G theme play, oil n gas n tourism!
2021-01-02 21:10
Show us your account first before I can trust that you bought it . Maybe promote n sell your holding.
2021-01-02 21:21
We will all grow old one day. We also have parents and grand parents. So respect the elderly irrespective of one’s investment style. There is something to learn from every episode.
2021-01-02 21:27
Must promote ma. 80% of his portfolio on supermax... If Supermin lausai, all his hard work profit on Tguan, Jaks, etc will disappear on thin air... My advise to uncle is hold 2 more months
2021-01-02 23:43
Still writing the same old shit which is public knowledge. The golden rule in the stock market is to avoid down trending stock especially when you're on margin. Like they say, no money don't try to play big. Anyway, the SC should probe these articles written by those with vested interest without any investment licence to promote their shares. This infringes the new regulations issued recently by the authorities. Someone should alert the SC on this.
2021-01-02 23:48
Very bad and rude, all bilises here.....trapping shark one leg up there
2021-01-02 23:53
Yy can borrow more to buy more glove shares, and doesn’t need to annoy the whole world repeating the same points 100 times. He is becoming pathetic.
2021-01-03 10:11
I am not encouraging you to buy or sell because your trading volume will not affect the share price as the daily traded volume is tens of million shares.
,................,...........................................................
Really sick of reading this lansi statement
2021-01-03 11:28
Glove stock not all doom when pandemic over ASP drop say 3 years later. By that time glove company might have billions in their balance sheet. You need to determine net cash per share by that time and with those cash glove companies can diversify into others sector say technology.
2021-01-03 11:55
No one has considered the effect of Inflation. At this time Government spending, which by the way they have to do, will spur inflation levels high. The general outlook is anaverage of 3-5% inflation yoy.
2021-01-03 12:08
Given that, there could be no drop in ASP, just flattening of the ASP growth. That will more than be covered by the increased production.
2021-01-03 12:09
U need to very becareful loh....company like topgloves, with about Rm 50b mkt cap...with nta per share of 70 sen or shareholder funds below Rm 5b loh!
Even if topgloves gain another Rm 5b, it is still a long way from the current mkt cap of Rm 50b mah...!!
Posted by gladiator > Jan 3, 2021 11:55 AM | Report Abuse
Glove stock not all doom when pandemic over ASP drop say 3 years later. By that time glove company might have billions in their balance sheet. You need to determine net cash per share by that time and with those cash glove companies can diversify into others sector say technology.
2021-01-03 12:14
The same thing applies to supermax too loh!
Posted by stockraider > Jan 3, 2021 12:14 PM | Report Abuse X
U need to very becareful loh....company like topgloves, with about Rm 50b mkt cap...with nta per share of 70 sen or shareholder funds below Rm 5b loh!
Even if topgloves gain another Rm 5b, it is still a long way from the current mkt cap of Rm 50b mah...!!
Posted by gladiator > Jan 3, 2021 11:55 AM | Report Abuse
Glove stock not all doom when pandemic over ASP drop say 3 years later. By that time glove company might have billions in their balance sheet. You need to determine net cash per share by that time and with those cash glove companies can diversify into others sector say technology.
2021-01-03 12:16
90% supermax and 10% top glove... woohooo..... no wonder he is extraordinary investor...
2021-01-03 16:18
I thought he say nothing is continue up one? That's not his own principle?
2021-01-03 18:19
Just keep for dividends. The dividend yield at least could beat FD rates. Good enough for a retiree uncle.
2021-01-03 19:53
What make he think more glove orders to come? Past orders could be stocked up by mid guys which can sustain usage without new orders for some time in the near future ..
2021-01-03 20:30
Please please please dont play me! This stock not for mid or long term! Its for theme play only. Keep for dividend!? Are you joke please!? This company never give out 50% of profit as dividend, good!? excellent!? bad!? lousy!? For me, this counter is game over when the day announce bonus issue! Excellent company no need to issue bonus or what ever donkey show! The most simple way is take care the business and give out 80% to 90% profit as dividend non stop!
2021-01-03 22:36
All sophisticated glove investors should consider diversifying their portfolio to true recovery stocks to protect their profits and grow them further
Top pick is Genting Berhad (3182) powered by the super catalysts: -
MA 20 > MA 50 on 17 Nov 20
MA 20 > MA 200 on 2 Dec 20
MA 50 > MA 200 on 28 Dec 20 Golden Cross
Confirming the long-term uptrend and the start of the multi year super cycle bull run and the Chinese New Year Rally in 2021
-----------------------------------------------
2009 Global Financial Crisis (GFC)
2020 Covid-19 Pandemic
2009 Year of the Ox (aka Super Bull)
2021 Year of the Ox (aka Super Bull)
2009 Mar RM3.08 (low) to 2011 Nov RM11.98 (high)
2020 Nov RM2.95 (low) to 2021 RM ????
There are many cycles which always repeat e.g. economic cycle and recession (10 years), stock market cycle, commodities cycle...
After every recession Genting goes on a super bull run as the economy accelerates
History always repeats itself
Sincerely,
EMSVSI
2021-01-04 09:41
The big sell-off has started on the very 1st trading day of 2021 for the glove big boys. Margin players will be running helter-skelter now. Let's see if they're still saying is illogical to sell.
2021-01-04 09:44
uncle KYY.. what happened to your 90% and 10% holdings?
question from another ordinary investor.
2021-01-04 10:22
Actually Top Glove dividend yield not bad la, unker can keep as FD-equivalent.
2021-01-04 10:50
Lucky follow his advice ( not encouraging you to buy or sell because your trading volume will not affect the share price....).
2021-01-04 11:49
Can also be;
Only those who cry last, cry the worse ?
Posted by ahbah > Jan 4, 2021 11:06 AM | Report Abuse
Onli those who laugh last, laugh the best ?
2021-01-04 11:51
I am obliged to inform you that 90% of my investment is Supermax and 10% is Top Glove. I am not encouraging you to buy or sell because your trading volume will not affect the share price as the daily traded volume is tens of million shares.
Who sell the share price down when you guys trading volume will not effects the share price? Fund? IB? He looked down on dairy traders, but he forgot that when people group up, he is smaller then anything. He himself is a trader claimed to be investor. But true, he got money but no integrity.
2021-01-04 12:33
My thoughts are with those who blindly followed this unker's advice on JAKS Resources last time. Those days almost every day KYY promoted JAKS just like how he promotes gloves now. Deja vu
2021-01-04 13:25
If this is really true ah ??
Do not forget Topgloves already 25% of the world capacity mah..!!
Supermax already supplying to USA & the World mah....!!
It must be excess of capacity & no shortage in order to allow them do that mah..!!
Posted by vaccineneedgloves > Jan 4, 2021 1:22 PM | Report Abuse
Stockraider That is also the day the American join the business venture with supermax. They block topgloves but they allow supermax. Very smart.
2021-01-04 13:26
Seriously all thinks topglove shares will continuously to fall, did anyone try some on topglove HA?
I’m buying some bcoz not big only 1k lots, few thousands to c my forecast correct or wrong in a month.
2021-01-04 13:29
@Macrullen if you ignore the bonus issue (i.e. assume it never happened), TG is now RM16.38 (5.46 x 3). Before Covid-19 in Malaysia, TG is around RM6, its peak during Covid-19 in Malaysia is around RM29. Don't need to do a very pro punya calculation, just take average of the 2 prices, and you get RM17.50. So I would say TG is "fairly valued" now - it won't fall much from here yet limited upside. Just keep for dividends is not bad actually.
2021-01-04 13:35
uncle margin call coming ah? if im u i dump all now keep in fd at least no 30% loss. gloves stocks will die out in future maybe u help them buy their inventory la
2021-01-04 13:42
Armada Quantum Leap Stock In 2020
Wao... VenFx lovest, buy and hold Supermx, uploaded some more when high price
now become dividend collector, coz lost 40-50% on price if sell now
Stay strong VenFx
2021-01-04 13:42
The last statement is like reverse psychology. It tells you your investment does not mean much, but in actual it will become something when thousands of retailers are buying. Butterfly effect la KYY honcho, the other side already sees your karma and people are here to counterbalance your articles...
2021-01-04 15:58
Oxford AstraZeneca vaccine.
https://twitter.com/NHSEngland/status/1346003451000532992/photo/1
https://www.telegraph.co.uk/global-health/science-and-disease/coronavirus-news-covid-vaccine-oxford-schools-uk-closed-national/
No gloves? Hehehe
2021-01-04 16:15
So lansi. Our volume won't affect the share price? I agree our volume won't affect the share price. I know you own a lot. Are you selling? That's why today red like shit?
2021-01-04 18:27
There is no more protection from shorties beginning from today. Saw what they can do today? Topglove's dividend is peanuts compared to the paper loss that you will suffer. There is a saying, never buy downtrending stocks. Always buy uptrending stocks. How come this uncle didn't tell you guys, because he needs to run mah. His track record is in shambles yet still so many believers follow him, hmmmm. Tomorrow we will know if shorties attack glove stocks again, cheers.
2021-01-04 22:58
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Uncle YY, why very very very hard working promoting Supermx...
Must be stuck in Supermx.
Let’s pray for you Uncle YY.
Uncle YY, go to bankers,
bankers can help pinjam Rm to you.
No need promoting Supermx... day and night la.
Buat sendiri penat saja.
2021-01-02 20:36