Koon Yew Yin's Blog
Supermax price is dropping while EPS is increasing - Koon Yew Yin
Koon Yew Yin
Publish date: Fri, 05 Feb 2021, 11:36 AM
Koon Yew Yin
0 1,416
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
The 2 price charts shows that Supermax share price was 86 sen on 5 Feb 2020, exactly 1 year ago and it peaked at Rm 11.89 on 6 Aug 2020. It shot up about 13.8 times since the demand for gloves continued to increase due to Covid 19 pandemic. Among all the glove stocks Supermax has shot up the most because it has the best profit growth rate.
Its 1st quarter ending Sept 2020 EPS was 30.58 sen. Its previous quarter EPS was 15.24 sen. Its 2nd quarter ending Dec 2020 EPS was 41.14 sen. It is selling at single digit PE.
Many scientists predicted the Covid 19 pandemic will continue for another 4 or 5 years despite massive vaccination. In fact, additional glove will be required by medical workers during vaccination.
Unfortunately, it has been dropping in the last few months while the company continues to report increasing profit in the last few quarters.
It defies all fundamental analysis and investment logic. I am prepared to wait patiently. Patience is the key for successfully investing.
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Discussions
Be the first to like this. Showing 40 of 40 comments
No, Instead of earnings, we should value based on hope and dreams and bubbles
2021-02-05 13:08
now realise why Uncle asked everyone to check their track record and mirror.
2021-02-05 13:27
Vivocom..another Tesla in the making..RM1.88 b4 CNY..look at the ads above...come come hoot9e..Huat ah..sailang ah...mortgage your underwear or panties and ALL IN
2021-02-05 13:44
Market afraid unsustainable of abnormal profit margin of 50%, entry of many new players, depreciation of USD and major expansion by all player resulted oversupply.
2021-02-05 19:40
this is getting embarrasing old man. this needs to stop.
maybe you should consider pumping your old favourite Hengyuan to make up for your losses here?
2021-02-05 20:04
Come on... come to bimb-wa, they're giving you a cheque and you get to write the amount you desire, come.
2021-02-05 20:17
" I am prepared to wait patiently. Patience is the key for successfully investing."
-because you have no choice. now you can add gloves to your shoe (Xingquan) "long term" investments. oh well... :/
2021-02-06 05:04
If the profit or EPS can sustain for the next 5~10 years, then this is different story. People are throwing because the play is over.
2021-02-06 08:14
Many trapped at high price, including this author KYY, do you think IBs will push up for you and him to unload ?
2021-02-06 08:58
Tech is just another big bubble in the making..
Till now i hv yet to see any smart fellow (except myself) explained why glove co now r unable to move up again....all just blame IBs blame dogs blame cats
Its simple, number of shareholders in most glove co has increased more thab 300% in 2020. Distribution 99 at high prices...
Unless u can find new investors (new funds) fm overseas or MARS to push it up
But then, only my dog also konw ASP will only hv ome directiok to go in coming years....
2021-02-06 09:30
dont worry most glove co will trade at single digit PE in 2021...some even come with fantastic DY like TG.....
So wanna buy more??
2021-02-06 09:34
KL (Feb 5):
Rising NPLs ( Bad bank Loans) paint bleak picture of economic recovery-
-------------------------------------------------------------------
1-Impaired loans creeping up every month in 4th qtr 2020
after loan moratorium ended Sept 30
2-NPLs reached 9-year high of RM28.7b end-2020
RM24.9b in Sept 2020
3-NPL rose to RM25.7b in October
4-RM27.8b and RM28.7b in Nov and Dec respectively
5-Ratio of NPL to total loans rose in tandem
0.84% in Sept 2020 to 0.87% in Oct, 0.95% in Nov and 0.99% in Dec
6-Household sector, wholesale, retail, restaurants, hotels , finance, tourism, gaming will be hardest hit and take years to fully recover.
Vaccines will not eradicate the pandemic- ie not a silver bullet per WHO as new variants spread.
GLOVE sector is still the best for many many years to come.
2021-02-06 10:02
After Mac 2021 u cannot blame IBs for shortselling to cover their losses in their cw anymore....most in the price CWs will expire by then...the new cws r mostly with extremely high conversion price n high premiums
Better find some more excuses then
2021-02-06 10:09
Yr sayings sounds very familiar to me....reminded me of year 2000 Y2K..
MPI hit ard rm80 to rm90 i think n Unisem was ard rm40+
One of client asked me to buy 1k Unisem (Rm40k+) n i told him i rather buy half a landed property in that area then
The rest is history
2021-02-06 10:51
Now unisem stil below rm9 compared to rm40 last tech bull run. Stil cheap
2021-02-06 13:41
hong kong Ka-Shing Li said, always do not look too bad and too good.
2021-02-06 19:32
Buy goreng stocks better than this stock promoted by YYk.
Sayonara... at least I don’t get his bad aura s
2021-02-07 09:00
The era of Ykk following was HISTORY.
Don’t be plenty of fool followers in the past.
2021-02-07 09:06
Go for banking and construction sector. They will be the catalyst for Malaysia economic recovery. Stay away from property counters until 2027 at least. I just surveyed the city surrounding areas past few weeks. Empty shoplots and residences are increasing. Most of them are for rental. And i look around everywhere. None of the people, not even one, is wearing any glove too. All wear facemasks, but nobody wear gloves.
2021-02-07 11:40
valuation of stocks based on earning eps pe dcf etc is the most important things.
to use other things to value stocks means u are not valuing companies for their profit earnings potential
klse is a crazy gambling market. stuuupid
2021-02-07 11:53
even for airlines n contruction u will also eps to value. betul? dun be stuupid to convince ppl otherwise
2021-02-07 11:57
banking industry will take while to recover. npl loans are rising. if economy is slow to recover banks will too
construction lagi worse. 2 more years possible ok
airlines perhaps 2 more years
however since these stocks especially construction n airlines are soooo cheap. if u are willing to invest for a long term...yes they are ok
Buy at your own risk n advise thank you
2021-02-07 12:00
That being said single digit pe for a mnc company earnings billions pat per quarter is rediculous!
It should be fairly valued at above rm20
2021-02-07 12:03
To be honest, the total number of daily new covid cases worldwide tops around 840,000 and trending towards 400,000 since 1 month ago.
Long term glove would still in demand but unlikely to repeat last year frenzy of glove demand.
In this short term low PE for glove stock will still remain till year end.
PE will beginning to normalise and ASP begins to drop significantly by 60%.
IBs are pricing it forward 2022/2023/2024 when ASP drops to USD35 per 1000.
Besides that, IB is also looking at additional supplies from glove wannabes, like Mahsing, AT,Titijaya, Aspen,Inix, Kanger etc by end 2021 will come in with additional 10 bil supply per annum.
Market will be flooded with gloves.
It seems that gloves no longer is an oligopoly business but monopolistic. No more moat for gloves sector unlike before the pandemic.
2021-02-07 12:05
Additional most of the old generation like to look at PE as they investment point. Come on, I heard this method since last year.. Konon those old generation count & count & count Supermx IMPOSSIBLE going to be single PE.. Now the whole market proven Supermx is Single PE.. Haha.. When last year I look at this I laugh until cannot sleep why this world still got people looking at PE for investment. Haha
2021-02-07 15:36
PE is a good indicator to determine if the company is overvalued or undervalued.
It cannot be used by itself but compared with rivals in the same sector.
Each sector has their own average PE but PE is allocated by the market capitalisation. Eg: Top3 leaders can afford higher premium of the average PE.
Glove has hit its peak in Oct 2020 in terms of premium and price premium had been reflected 9-12 mths ahead.
However, holding to glove stocks for long term(>5yrs) will still prove a winner as glove cannot be replaced or it doesn't have a replacement yet.
2021-02-07 15:54
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
speakup
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very strange phenomenon
2021-02-05 12:48