THE INVESTMENT APPROACH OF CALVIN TAN

A TALE OF 3 GLOVES IN PICTURES : COMFORT GLOVE, TOPGLOVE & SUPERMAX, Calvin Tan Research

calvintaneng
Publish date: Fri, 12 Jun 2020, 11:04 PM
calvintaneng
0 1,788
Hi Guys,

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

Hi guys'

Now all 3 Results are out

Comfort Glove, Topglove & Supermax

Let's see their figures

1) COMFORT GLOVE

SUMMARY OF KEY FINANCIAL INFORMATION
30 Apr 2020

 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
30 Apr 2020
30 Apr 2019
30 Apr 2020
30 Apr 2019
$$'000
$$'000
$$'000
$$'000
1 Revenue
152,907
119,956
152,907
119,956
2 Profit/(loss) before tax
22,242
10,555
22,242
10,555
3 Profit/(loss) for the period
16,339
8,411
16,339
8,411
4 Profit/(loss) attributable to ordinary equity holders of the parent
16,339
8,411
16,339
8,411
5 Basic earnings/(loss) per share (Subunit)
2.80
1.50
2.80
1.50
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 ($$)
0.5600
0.5500
 

 

It earns 2.8 sen (Annualised 2.8 sen x 4)

= 11.2 sen

If we give it a 30 P/E then

11.2 x 30 = Rm3,360

So price should trade at Rm3.36 (if P/E is 30)

 

2) TOP GLOVE

SUMMARY OF KEY FINANCIAL INFORMATION
31 May 2020

 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
31 May 2020
31 May 2019
31 May 2020
31 May 2019
$$'000
$$'000
$$'000
$$'000
1 Revenue
1,688,324
1,190,235
4,127,201
3,612,165
2 Profit/(loss) before tax
422,020
82,239
677,846
349,588
3 Profit/(loss) for the period
350,033
75,188
577,802
293,536
4 Profit/(loss) attributable to ordinary equity holders of the parent
347,895
74,665
575,004
290,512
5 Basic earnings/(loss) per share (Subunit)
13.59
2.92
22.46
11.37
6 Proposed/Declared dividend per share (Subunit)
10.00
3.50
10.00
3.50
   
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 ($$)
1.2900
0.9900
 

1) Profit this quarter 13.59 (Annualized 13.59x4 )

= 54.36 sen

If PE 30 then 54.36 x 30 = Rm16,308

Or Rm16.30 (P/E 30)

 

3) SUPERMAX

SUMMARY OF KEY FINANCIAL INFORMATION
31 Mar 2020

 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
31 Mar 2020
31 Mar 2019
31 Mar 2020
31 Mar 2019
$$'000
$$'000
$$'000
$$'000
1 Revenue
447,247
361,199
1,202,685
1,113,352
2 Profit/(loss) before tax
95,277
49,416
169,549
156,409
3 Profit/(loss) for the period
72,349
34,963
127,331
109,653
4 Profit/(loss) attributable to ordinary equity holders of the parent
71,056
34,617
125,968
108,695
5 Basic earnings/(loss) per share (Subunit)
5.42
2.64
9.62
8.29
6 Proposed/Declared dividend per share (Subunit)
0.00
0.00
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 ($$)
0.9200
0.8300
 

 

Profit 5.42 sen (If annualized 5.42 x 4 )

= 21.68

If P/E 30 then 21.68 x30 = Rm6,504

Rm6.50 (If P/E 30)

Currently Comfort is Rm2.93 (If P/E 30 should be Rm3.36)

So is Comfort trading below P/E 30 value?

 

2) TopGlove is Rm16.90 (If P/E 30 should be Rm16.30)

Is Topglove trading above its 30 P/E?

 

3) SUPERMAX is Rm7.91 (If P/E 30 then Rm6.50)

Is SuperMax trading at a premium above its P/E 30 value of Rm6.50)

 

ON FACE VALUE WE SEE COMFORT GLOVE IS TRADING BELOW IS 30 P/E

WHILE SUPERMAX IS TRADING HIGHER ABOVE ITS 30 P/E

 

THERE MUST BE A REASON WHY THE MARKET UNDERVALUES COMFORT & OVER BULLISH ON SUPERMAX

How?

So we dig deeper

See

1) COMFORT GLOVE IS LIKE A YOUNG CARE FREE BOY WALKING

See little boy running in the meadow

Little boy running in meadow, side view

This is the attitude of Comfort Glove Bosses

See

They happily merrily sell shares.

 

2) TOPGLOVE

Adult Entrepreneur Portrait Wearing Tie Walking On Sidewalk Stock ...

Top Glove is a serious grown adult walking confidently

See

They are gathering Wealth & Accumulating it (Esos) No selling yet because still seriously expecting more to life

 

3) SUPERMAX

Stock Photo - Young man running with briefcase. Stock Photos ...

SuperMax is like A Young Business Man Running to Get More Business

3 New Factories being built concurrently

Just bought another land to build glove factory number 4

Instead of doing easy OEM SuperMax go all out doing OBM to get more Value

See

IN STEAD OF SELLING THEY ARE BUYING MORE FROM OPEN MARKET FROM RM7.50 TO RM7.73

 

WHICH ONE WILL YOU CHOOSE?

 

Best regards

Calvin Tan Research

Singapore

 

Please buy/sell after doing your own due diligence

More articles on THE INVESTMENT APPROACH OF CALVIN TAN
Discussions
2 people like this. Showing 32 of 32 comments

sensonic

SIFU CALVIN, GOOD ANALYSIS. RESPECT

2020-06-12 23:08

jolow

Sell comfort. lack of quality conscious . That’s why end up detention by fda.

2020-06-12 23:11

MariYahiMariYaho

careplus analysis mou

2020-06-12 23:15

EngineeringProfit

Calvin, your super calf is undergoing puberty this week....

....and is super rebellious

2020-06-12 23:26

pvd_investor

Thank you for the analysis, interesting!!

2020-06-12 23:33

hng33

1. Top glove revenue rose 37% due to higher sales volume (+25%) and ASP (+5%). Correspondingly, PBT margin improved by a massive 14.4ppt to 25% compared to 10.6% in 2QFY20 due to higher ASP which theoretically flow straight down to bottom-line. Top glove latest financial ending May only manage to record 5% hike in ASP, already can record more than double profit.

More boom profit will record in next Q result after record current ASP hike 20%, more than triple increase in EPS in next Q result as all increase in ASP direct go to increase net profit margin.

2. Comfort financial year ending April still yet to record impact on ASP which only took effect begin May. But, just through increase sale volume, productivity already can record double profit. Next Q result will record full impact ASP on profit. But, as small OEM, the ASP could be 10%, therefore, next Q result EPS 5 sen

3. Supermax financial ending Mar, only manage to record least impact of surge in sale demand, but able to capture small ASP due to it have own distribution division. The full impact on ASP in OEM factory price hike 20% + OBM distributors 100-150% hike will only able to record in next Q result. As ASP hike direct go to bottom line, Expect Superman to deliver quadruple EPS 20sen in next Q result.

2020-06-12 23:47

hng33

Northcape, an Australia-headquartered asset manager that has been investing in the shares of glove makers for more than a decade, bought more glove-makers’ shares early this year “when signs emerged that Covid-19 would become a global pandemic,” Cameron said.

According to his calculations, Top Glove will generate average earnings growth of more than 100% for each of the next two years while Hartalega will also deliver “exceptionally strong” earnings growth as personal protective equipment purchases increase globally.

Some glove makers have “an order backlog all the way out to June 2021,” compared with one month before the pandemic, he said. The discovery of a vaccine to prevent Covid-19 disease will also help keep demand elevated because “glove companies and some experts have noted that the ”widespread administering of a vaccine will actually result in a further spike in glove demand, he added.


Important Remark: widespread administering of a vaccine will actually result in a further spike in glove demand,

2020-06-13 00:05

danieloon

well written. thanks bro for the explanation with good compare

2020-06-13 00:26

shareinvestor88

comfort overrated sell TP 50c

2020-06-13 03:32

635789

You did a very good homework and a very good analysis and comparison among the big 2 and a younger and beautiful comfort which most iinvestment bankers have not done it but may be pushing down the share for the past 5 days so that they can buy cheaper shares. EPS growth and PE are the most crucial to value a company and definitely this young boy is undervalued compared to the big 2 men which all the investment bankers have made very good comments.

2020-06-13 07:41

CCCL

Comfort boses very smart, taking salary from the market.

2020-06-13 07:48

freetospeak

Good write up. One of the reason becoz tg is 2.5 mths in to covid period,comfort 1.5 mth and supermax onky 2 wks into covid period.somemore is at lockdown period during march. And supermax 2wks in to covid period while lock down still can get 2x profit margin increase 9 to15.

2020-06-13 08:21

freetospeak

If any one can get tg jan to mar result,comfort jan to march and supermax jan to mar and compare...will know the big diff.

2020-06-13 08:25

elbrutus

bro ...SUPERMAX will win HANDS DOWN ...sap sap sui !!!

2020-06-13 13:15

calvintaneng

Thks for all the comments and inputs

2020-06-13 14:58

m3379

Good analysis

2020-06-13 20:22

patrick8

Nicely done with interesting pics. At the moment, Top Glove is like Hulk rampaging through the city.

2020-06-13 22:20

calvintaneng

3iii So Blind To Cyclical Supermax because he is STUCK in Dinosaur Dumb Dutch Lady

2020-07-18 22:35

calvintaneng

HI GUYS

A TALE OF 3 GLOVES WAS VERY MEMORABLE INDEED

NOW IN PROGRESS WILL BE

A TALE OF 3 PALM OIL STOCKS

JTIASA, FGV & ???

WHICH ONE IS 3RD?

AFTER GLOVE BULL NOW FCPO RM3,505 WILL FGV BE LIKE TOPGLOVE & JTIASA BE SUPERMAX? Calvin Tan Research

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-11-29-story-h1537301957-AFTER_GLOVE_BULL_NOW_FCPO_RM3_505_WILL_FGV_BE_LIKE_TOPGLOVE_JTIASA_BE_S.jsp

2020-11-29 21:44

calvintaneng

TODAY LISTEN LISTEN LISTEN

TIME TO BUY

AZRB
FGV
ALL PALM OIL COUNTERS

REGARDS

CALVIN TAN RESEARCH

2021-03-19 09:26

calvintaneng

Bought supermax at rock bottom of Rm1. 73

Sold above Rm18. 00 for 1,000% gain

Now is the best time to buy palm oil shares

2021-04-01 12:01

calvintaneng

Calvin's warnings !!!

Don't chase Glove now or else will end up like chasing Jaks at Rm1.80, chasing hengyuan at Rm19 or chasing dayang at Rm3.01

Gloves now in cyclical peak and will turn down again

Those who buy and hold glove at peak will later get stuck when prices turn down again

Topglove boss seeing danger already told Tropicana people to Cutloss on Topgloves or else will lose more later

Palm oil still very very cheap can buy as much as you can safely

2021-04-27 08:42

CharlesT

calvintaneng Bought supermax at rock bottom of Rm1. 73

Sold above Rm18. 00 for 1,000% gain

Now is the best time to buy palm oil shares

Palm oil stocks no movement...but glove stocks rebound more than 50%...

So yr advice sucks

2021-04-27 08:44

calvintaneng

CharlesT

As I warned

those who chased Topglove , supermax and kossan now stucked as prices retraced from top

later will live in penthouse hor

2021-04-27 11:21

stockraider

Be very careful loh...Gloves is a simple commodities...its price up alot bcos of shortages mah!

Sure thing is that the supply & capacity will definitely catch up as many people is rushing in to manufacture gloves loh!

2021-04-27 11:23

CharlesT

Palm oil is real commodity lah...not glove

2021-04-27 12:12

calvintaneng

CharlesT calvintaneng Bought supermax at rock bottom of Rm1. 73

Sold above Rm18. 00 for 1,000% gain

Now is the best time to buy palm oil shares

Palm oil stocks no movement...but glove stocks rebound more than 50%...

So yr advice sucks
27/04/2021 8:44 AM

WHERE IS CHARLES T?

LONG TIME DISAPPEARED?

THAT WAS A CHUN CHUN BUY CALL ON SUPERMAX AT RM1.73
AND CHUN CHUN SOLD ABOVE RM18.00 FOR 1,000% GAIN

CHARLES T CAUSE A DEAD CAT BOUNCE
NOW HE LIVED WITH A VERY SMELLY DEAD CAT STILL DEAD?

BETTER DON'T FOLLOW THE GROSS ERROR OF CHARLES T

NOW ALL MUST GIVE UP GLOVES AND BUY PALM OIL

NOV 2021 PALM OIL RESULTS WILL BE GREAT
FEB 2022 PALM OIL RESULTS WILL BE FANTASTIC

BUY BEFORE PALM OIL TURNS INTO HOT HOT STOCKS

Regards
Calvin
Dated Nov 5 2021

2021-11-05 14:07

Intrinsic99

Other members also buying valuable stocks but not behave like this iddiot spammer

We all feel ridiculous nonstop posting nonstop promoting

As I said earlier, if you so confidence to wait and if you so confidence what you invest why everyday need to promote, why everyday put up so many blog, why everyday go different stocks forum keep on promoting your palm oil stocks?

This is very obvious you want to cash out your share bought and treat other members as waterfish.

In the real world, no free lunch to people unless you want to take advantage from others

I don't know why 3iii administrator didn't take any action to suspend this iddiot account to avoid further keep on spamming everyday and every way

I pegging administrator need to take proper action against this spammer

2021-11-05 15:33

Intrinsic99

Most of the fund managers have predicted the cpo price shall be normalised to RM 3000 to RM 3500 by next year

This is the reason why fund managers not aggressive to buy because they know the trend same with glove sector

More important is western countries still banning cpo imported products due to ESG

Very soon can see the big impact for plantation stocks (less than 2 months to go)

Now you can see fund managers start to catch out and switch to recovery stocks

You can see this iddiot why keep on promoting due to this iddiot wants to cash out to avoid further losses

2021-11-05 15:33

calvintaneng

intrinsic99 is super bodoh

now we see palm oil going up in a superbull like glove did in year 2020

now

2022-03-02 16:46

patrico8

Your advanced eyesight is admirable. lol

2022-03-02 18:03

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