THE INVESTMENT APPROACH OF CALVIN TAN
SUPERMAX (7106) VERSUS KOSSAN (7153) Compare & Contrast Their Accounts & Prospects, Calvin Tan Research
calvintaneng
Publish date: Sat, 16 May 2020, 10:51 AM
calvintaneng
0 1,808
Hi Guys,
I have An Investment Approach I which I would like to all.
I have An Investment Approach I which I would like to all.
Hi guys
So happy Bull Time has returned to Malaysian Glove Companies due to Coronavirus
While many Businesses are going bankrupt & closing Shop THE BEST BUSINESS ON PLANET EARTH TODAY IS SELLING MEDICAL EXAMINATION & SURGICAL GLOVES
And this is not an option or choice. THIS IS AN IMPERATIVE! AN EMERGENCY TO SAVE LIVES BY THE COLLECTIVE WORLD GOVERNMENTS OF 7 BILLION PEOPLE ON EARTH
AND AS LONG AS COVID 19 LINGERS THE DEMAND WILL CONTINUE AND SO IS THE GLOVE BULL RUN
Now let's look at These Two Stocks = SuperMax & Kossan
Why picked these two for comparison
Because their balance sheet look similar but the Difference is the Price.
SUPERMAX (Please go to latest qtr report)
SUMMARY OF KEY FINANCIAL INFORMATION
|
|
INDIVIDUAL PERIOD
|
CUMULATIVE PERIOD
|
||||
|
CURRENT YEAR QUARTER
|
PRECEDING YEAR
CORRESPONDING QUARTER |
CURRENT YEAR TO DATE
|
PRECEDING YEAR
CORRESPONDING PERIOD |
||
|
31 Dec 2019
|
31 Dec 2018
|
31 Dec 2019
|
31 Dec 2018
|
||
|
$$'000
|
$$'000
|
$$'000
|
$$'000
|
||
| 1 | Revenue |
385,497
|
385,101
|
755,438
|
752,153
|
| 2 | Profit/(loss) before tax |
41,829
|
54,317
|
74,272
|
106,993
|
| 3 | Profit/(loss) for the period |
30,022
|
38,721
|
54,982
|
74,690
|
| 4 | Profit/(loss) attributable to ordinary equity holders of the parent |
30,165
|
38,136
|
54,912
|
74,078
|
| 5 | Basic earnings/(loss) per share (Subunit) |
2.31
|
2.91
|
4.21
|
5.65
|
| 6 | Proposed/Declared dividend per share (Subunit) |
0.00
|
1.50
|
0.00
|
1.50
|
|
AS AT END OF CURRENT QUARTER
|
AS AT PRECEDING FINANCIAL YEAR END
|
||||
| 7 | Net assets per share attributable to ordinary equity holders of the parent ($$) |
0.8600
|
0.8300
|
||
Supermax profit is 2.31 sen
If annualised 2.31 x 4 = 9.24 sen
At Rm3.97
Supermax has a P/E of 42.96
It has Rm1.909 Billlions in PPE, Cash, Receivables, Inventories, Investments & others
It has Rm763 Millions in borrowings, payables & etc
So it has 39.9% of liability to Value
It has Rm167.9 Millions in CASH
At Rm3.97 with NAV of 86 sen it is selling at Price to asset of 4.61 times
KOSSAN
SUMMARY OF KEY FINANCIAL INFORMATION
|
|
INDIVIDUAL PERIOD
|
CUMULATIVE PERIOD
|
||||
|
CURRENT YEAR QUARTER
|
PRECEDING YEAR
CORRESPONDING QUARTER |
CURRENT YEAR TO DATE
|
PRECEDING YEAR
CORRESPONDING PERIOD |
||
|
31 Dec 2019
|
31 Dec 2018
|
31 Dec 2019
|
31 Dec 2018
|
||
|
$$'000
|
$$'000
|
$$'000
|
$$'000
|
||
| 1 | Revenue |
578,349
|
589,372
|
2,221,607
|
2,140,571
|
| 2 | Profit/(loss) before tax |
72,279
|
71,400
|
280,107
|
249,264
|
| 3 | Profit/(loss) for the period |
61,577
|
61,033
|
227,922
|
204,599
|
| 4 | Profit/(loss) attributable to ordinary equity holders of the parent |
61,003
|
59,514
|
224,783
|
198,210
|
| 5 | Basic earnings/(loss) per share (Subunit) |
4.77
|
4.65
|
17.58
|
15.62
|
| 6 | Proposed/Declared dividend per share (Subunit) |
0.00
|
0.00
|
0.00
|
0.00
|
|
AS AT END OF CURRENT QUARTER
|
AS AT PRECEDING FINANCIAL YEAR END
|
||||
| 7 | Net assets per share attributable to ordinary equity holders of the parent ($$) |
1.1100
|
1.0200
|
||
Definition of Subunit:
In a currency system, there is usually a main unit (base) and subunit that is a fraction amount of the main unit.
Example for the subunit as follows:
| Country | Base Unit | Subunit |
| Malaysia | Ringgit | Sen |
| United States | Dollar | Cent |
| United Kingdom | Pound | Pence |
At 4.77 sen annualised
4.77x 4 = 19.08
At Rm7.68 Kossan has a P/E of 40.25
It has Rm2.321 Billions in PPE, Receivables, Cash & etc
It has R904 millions in Payables, borrowings & etc
It has 38.9% of liability of Value
Kossan has a Cash hoard of Rm162 millions
Kossan NAV is Rm1.11 or Price to book value of 6.91 times
So OK let us look more closely
KOSSAN earning at 4.77 sen looks better than Supermax at 2.31 sen
But that is all
Compare further
Kossan P/E is 40.25 while Supermax is 42.96
That again is a small difference
Kossan NAV is 1.11 sen and SuperMax is 86 sen (Supermax not much lower)
Liability to Value also quite similar Kossan 38.9% while Supermax is 39.9%
Look at this
Kossan price to NAV is 6.91 times while Supermax is only 4.61 times
AND THE BIG DIFFERENCE NOW IS THE PRICE GAP
K)SSAN IS RM7.68
SUPERMAX IS RM3.97
KOSSAN SHARE PRICE IS 93% HIGHER THAN SUPERMAX
IS SUPERMAX UNDERVALUE
THE ONLY DIFFERENCE NOW IS KOSSAN PROFIT OF 4.77 SEN COMPARED TO SUPERMAX AT 2.31 SEN
WE SEE TWO BOOSTER FOR SUPERMAX TO CHASE UP
1) SUPERMAX IS SELLING 100% EXAM GLOVES & SURGICAL GLOVES WHICH COMMAND PREMIUM PRICES
2) SUPERMAX ALSO SELL DIRECT THRU RETAIL STORES
READ THIS
Business Background
Supermax Corp Bhd is an investment holding company. The company is an international manufacturer, distributor, and marketer of high-quality medical gloves. It offers various types of latex gloves, which are exported to over 155 countries around the world. The company is organized into the following operating segments, Investment Holding, Manufacturing of Gloves, Trading of Gloves and Others. It has operational footprints across America and Canada, Europe and Asia. The company's largest end market by revenue is the America.
Business Background
Kossan Rubber Industries Bhd manufactures industrial rubber products and disposable latex gloves. The firm has three primary businesses: Technical Rubber Products, Gloves, Cleanroom Products, and Others. The Gloves segment generates the majority of revenue. The Technical Rubber Products business manufactures and distributes high technical input rubber products. The Gloves business manufactures medical grade examination gloves and specialty gloves for healthcare and industrial applications. The Cleanroom Products business sells rubber products that can be used in cleanrooms. The majority of Kossan Rubber’s revenue is generated through exports outside of Malaysia.
Notice the difference
SuperMax is 100% into Medical Gloves while Kossan also sell Technical Rubber Products, Gloves, Cleanroom Products, and Others
NOW COVID 19 Requires More Medical Gloves so SuperMax should by right do better going forward
SuperMax price now is Rm3.97
Target price is Rm6.00
If broken then Rm7.00 & above possible
Best regards
Calvin Tan Research
Singapore
Please buy or sell after doing your own due diligence. In doubt please consult your remisier or Fund Manager
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1 person likes this. Showing 5 of 5 comments
The big 4 and smaller players.
Targeted Yes, Pure play medical gloves is the way to go!
16/05/2020 6:53 PM
2020-05-16 22:13
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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....
Targeted
Yes, Pure play medical gloves is the way to go!
2020-05-16 18:53