Hi guys,

This bull run year for Gloves is as exciting as Last Year's Bull Run Time last Year when OGSE gave us gains of 100% to 500% from Uzma, Carimin (currymee), Dayang, Naim & Penergy

The CATALYST for OGSE was Petronas pouring in Rm30 Billions for Upstream Capex

The CATALYST FOR GLOVES NOW COMES FROM WORLD MEDICAL EMERGENCY DUE TO WORLD GOVERNMENTS, WORLD HOSPITALS BUYING UP GLOVES LIKE NEVER BEFORE

This is the Reason Why We Are Bullish as This Is The Thematic Upturn of Glove Demand as Well as Its Material

The Production of Gloves as we know will be IMPOSSIBLE WITHOUT THESE 2

1) GLOVE CHEMICALS LIKE NITRILE AND LATEX LIQUID

2) HARH FORMERS OR CERAMIC HAND MOLD

See again the glove production line Very Very Carefully

https://www.youtube.com/watch?v=A9PMs_N33fU

To make rubber Gloves there Must BE CERAMIC GLOVE HANDS (LOTS OF THEM ON BOTH SIDES!)

And the Latex by which CERAMIC GLOVE HANDS DIP IN TO GET IT COVER WITH A COAT OF LATEX TO FORM INTO GLOVES

SO THE INCREASE OF GLOVE SALES WILL RESULT IN GLOVE EXPANSION WHICH LEAD TO MORE USE OF GLOVE HAND FORMERS OR MOLD

Now Most Glove Stocks Have Powered Up

ES_CERAMIC REMAINS A LAGGARD

While many Glove Stocks have reached New High and Some Even Broken all Time Record ES_CERAMIC iat 35.5 sen is still far below its 2016/7 high of 63 sen 

Calvin being a Bargain Value Hunter Is Happy to Highlight the Great POTENTIAL of ES_CERAMIC

Now last Friday the result came in short. As a result there was a sell down

But after STUDYING IT DEEPER CALVIN THINKS THERE IS AN ANSWER

How?

We know that Year end Christmas Plus Chinese New Year Months have many off days

So there will less days for Production

So to Compare That Weak Quarter to the Quarter before that does not give an accurate picture

We should compare it with the Corresponding Period of Year End 2018 instead

So let's take a closer look

Above is  the Qtr ending on 29 Feb 2020

Below is the Qtr ending on 29 Feb 2019 (Exactly One Year apart)

Now look at the Figures more closely

1) REVENUE

Revenue for 29/2/2019 was Rm 8,326,000

Revenue for 29/2/2020 was Rm8,950.000

The difference?

It's up by 7.5%

2) PROFIT OR LOSS STATEMENT

There was a loss of -rm583,000 then

There is a gain of Rm653,000 now

The difference is a nice 212% improvement

3) NAV (NET ASSET VALUE)

It was 23 sen then

Is is 26 sen now

Or NTA has gone up by 13%

SO FROM ALL 3 ASPECTS ES_CERAMIC HAS DONE WELL IN REVENUE GROWTH, PROFIT GROWTH & NET ASSET GROWTH

After the bad Qtr of 29/2/2019 the Next 3 Qtrs of Es_Ceramic were excellent

They Register RM875,000 or 0.4 sen profit

Then Rm1,006,000 or 0.5 sen profit

And Rm1,037,00 or 0.5 sen profit

SO WE SEE THE TRUE PICTURE NOW

IF THE NEXT 3 QTRS OF 2019 DID WELL WITHOUT THE IMPETUS OF COVID 19

WHAT WILL BE THIS YEAR WHEN COVID 19 HAS CAUSED MANY MANY GLOVE ENTITIES TO RAM UP PRODUCTION BOTH IN MALAYSIA AND THAILAND AND SINGAPORE FROM WHICH ES_CERAMIC HAS CAPTURED THE BIGGER SHARE OF THE HAND CERAMIC FORMER/MOLD?

TO CALVIN THIS WILL BE A SUPERB YEAR NOT ONLY FOR GLOVES BUT ALSO FOR GLOVE FORMER/HAND MOLD LIKE ES_CERAMIC

Best regards

Calvin Tan Research

Please buy or sell after doing your own due diligence. In doubt please consult your remisier, accountant or fund manager