THE INVESTMENT APPROACH OF CALVIN TAN

LUXCHEM (5143) THE HIDDEN GEM OF GLOVE PROXY WITH GOOD DIVIDENDS, Calvin Tan Research

calvintaneng
Publish date: Tue, 04 Feb 2020, 12:18 PM
calvintaneng
0 1,841
Hi Guys,

I have An Investment Approach I which I would like to all.

Dear Friends/Investors/Traders of i3 Forum

 

Coronavirus increased demand for Gloves & surgical face masks by 100%

Suddenly Glove Counters come Alive

Now there is a Hidden Gem that is a Proxy to Glove

LUXCHEM (5143)

Why LUXCHEM?

LUXCHEM Manufactures Specialty Nitrile & Rubber Chemical for the Gove Makers

See Annual Report of LUXCHEM

Under this Trading segment, our activities are import, export and distribution of petrochemical and other related products to the Rubber, Latex, FRP, Coating and PVC industries. The major products are as follows:

• Synthetic latex

• Latex chemica

l • Synthetic rubber

• Rubber chemicals

• Polymer resins

and fibreglass materials

• PVC resins, plasticizers and additives

In FYE 2018, revenue from Trading segment was higher by RM3.57 million or 0.55% as compared to FYE 2017. The increase was mainly contributed by higher sales from PTLI. Profit after tax decreased by RM0.65 million or 3.26%, mainly due to lower margins. Strategies In order to remain competitive, our strategies include the following:

• Keeping stocks at optimum levels

• Ensuring prompt collection from customers

• Close monitoring of foreign currency exposures and exchange rates

• Expanding our product range

 

Read again:

• Synthetic latex

• Latex chemical

l • Synthetic rubber

• Rubber chemicals

 

SYNTHETIC LATEX IS FOR NITRILE GLOVES

Latex chemical, syntethic rubber & rubber chemical are for Rubber Gloves

 

SO LUXCHEM IS A PROXY TO GLOVE COMPANIES LIKE TOP GLOVE, KOSSAN, SUPERMAX, HARTALEGA & OTHERS

AS Orders Surged by 100% from CoronoVirus THERE WILL BE INCREASING DEMAND FROM LUXCHEM AS WELL

 

Since ALL RUBBER GLOVES HAVE GONE UP BY 30% TO 50% & SOME EVEN MORE THERE IS BOUND TO BE AN INCREASE IN ORDERS FOR LUXCHEM NITRILE CHEMICALS & RUBBER LATEX CHEMICALS FOR THE GLOVE MANUFACTURING INDUSTRIES

 

ONE MORE GOOD THINGS ABOUT LUXCHEM IS ITS EXCELLENT FINANCIAL HEALTH

 

AND LUXCHEM ABLE TO GIVE CONSISTENT DIVIDENDS BETTER THAN DLADY

SEE LUXCHEM DIVIDEND HISTORY

 

 

 

Even in year 2019 LUXCHEM gave out 2.25 sen dividend

At 49 sen LUXCHEM is giving a yield of 4.6% (This is 67% better than Bank FD rate at 2.75%)

NO WONDER THIS HAS BEEN CALVIN JOHOR SIFU FAVOURITE STOCK (HE PREFERRED THIS THAN TOPGLOVE OR HARTALEGA FOR ITS SUPERIOR DIVIDEND YIELDS)

NOW OTHER BOOSTERS FOR LUXCHEM IS THE EXPANDING FACTORIES OF TOPGLOVE AND OTHERS

AND THE FALL OF CRUDE OIL PRICES WILL SAVE ON COST

PLUS TOP 3 EXPORTING COUNTRIES OF LUXCHEM PRODUCTS ARE INDONESIA, VIETNAM & THAILAND (THESE WILLL BENEFIT FROM FACTORIES LOCATION FROM CHINA DUE TO TRADE WAR)

 

WHILE GLOVE COMPANIES HAVE SURGED UP BY AS HIGH AS 50% OR MORE LUXCHEM ALL TIME LOW WAS 47 SEN (NOW ONLY 49 SEN OR UP A MERE 4.2%

 

SO THERE IS STILL MUCH UPSIDE

 

Calvin has a Target Price for Luxchem at 80 sen 

At 49 sen that means an expected upside of 63%

 

BEST REGARDS

 

Calvin Tan Research

Singapore

Please buy or sell after doing your own due diligence

 

NOTE TO ALL CALVIN'S DEAR INVESTORS OF NETX, OPCOM, REDTONE, BINACOM & SACOFA (CMSB)

 

PLEASE DO NOT SELL THE ABOVE FOR LUXCHEM

NFCP BULL RUN STOCKS EXPECTED TO GAIN MUCH MUCH MORE

ESPECIALLY NETX (0020)

Discussions
3 people like this. Showing 18 of 18 comments

ks5S

always ESOS . Minority shareholder is the loser.

2020-02-04 12:41

calvintaneng

It is ok

They didn't steal money
No xxx like AirAsia

Dividend generous

2020-02-04 13:12

Savemoney

They doing great business

2020-02-04 15:11

ks5S

old man counter

2020-02-04 15:37

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)

... and what was the basis for calvin's recommending this stock?

2020-02-04 15:39

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)

Answer: NO WONDER THIS HAS BEEN CALVIN JOHOR SIFU FAVOURITE STOCK (HE PREFERRED THIS THAN TOPGLOVE OR HARTALEGA FOR ITS SUPERIOR DIVIDEND YIELDS)




Such analysis is of no value. You need to do a lot more work to analyse this company diligently.

2020-02-04 15:42

ks5S

correct. small kecik mayung company. want to sleep looking at this counter.

2020-02-04 16:19

calvintaneng

Luxchem Vs Dlady

1. For Luxchem if Glove companies expand production Luxchem will benefit

For dlady if Milk companies like F&N , Nestle, good day Milk expand mean more competition

2020-02-04 17:29

calvintaneng

Luxchem dividend yield is 4.6%
Dlady dividend yield is 2.5%

2020-02-04 17:30

calvintaneng

Luxchem is a proxy to World Champion rubber gloves companies as topglove, harta, supermax and kossan can expand and grow world wide unlimited

Dlady is limited by it's HQ friesand milk from Holland

Friesand has over 22 companies in which dlady is only a part

So dlady has limited market to Malaysia context only

Luxchem is small fish in Big pond
Dlady is big fish in small pond

Luxchem is growing
Dlady is unable to grow any more but can only shrink like in old age

2020-02-04 17:34

calvintaneng

Luxchem cash position is better than Dlady

2020-02-04 17:35

calvintaneng

So?

2020-02-04 17:35

hooi

luxchem profit margin low single digit. you only tell one side of the story.

2020-02-04 18:13

cheahsk

You believe this guy? Did you read what he said about Maybulk?

2020-02-04 18:21

Eastern686

Cold eye also bought Maybulk n divulged the dealings to Chinese press media.

2020-02-04 18:28

calvintaneng

Maybulk was a one off cyclical

I whataspped all my friends to sell on price rise and to watch Baltic dry index

2020-02-04 20:24

calvintaneng

For Luxchem it's raw material for rubber gloves is latex

For nitrile gloves it's raw material is crude oil

Now that crude oil has weakened near usd50 it's feed stock being cheaper will help in higher profit margin

So it's profit might also go up in double digits due to 2 factors

1. More sales of nitrile gloves chemicals to topglove, kossan, supermax, hartalega and others

2. Better margin due to cheaper crude oil feedstock

2020-02-04 20:28

calvintaneng

Sell all Luxchem now & SWITCH ALL TO TSH RESOURCES!!

2022-07-10 15:58

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