Hi guys (Please read to the end while we type)

So far so good

4 Major Gloves namely Topglove, Supermax, Kossan & Harta are now near to Rm15.00 & Rm25.00 range

Really Amazing Prices Indeed!

Now it seems people are afraid of them being too high and are turning to chase pharma counters, some even  to limit up today

But look at the context

Covid vaccines even if it's available will only apply to 32 million population in Malaysia. Since it does not origin from Malaysia every other country will have their own

BUT NOT FOR MEDICAL EXAM GLOVES

ONLY MALAYSIA HAS CAPTURED 65% OF MEDICAL GLOVE MARKETS WORLDWIDE

AND THE POPULATION IS VERY HUGE = 7.8 BILLION PEOPLE

See Covid vaccine = Market size - 32 millions

MEDICAL GLOVES MARKET SIZE = 7.8 BILLIONS

Now since TOP 4 GLOVES TAIKO HAVE GONE UP VERY HIGH NOW

Let's look at 4 smaller laggard gloves & SEE if there is VALUE THERE

HLT GLOBAL

HLT EARNS 0.51 SEN ONE QUARTER

Annualised 0.51 x 4 = 2.04

If P/E is 30 

2.04 x 30 = 61.2 SEN

PRICE NOW 71 SEN (P/E 34.8)

CAREPLUS

LATEST QTR IS 0.21

ANNUALISED 0.21 x 4 = 0.84

P/E 30

30 x 0.84 = 33.6 SEN

CURRENT PRICE IS Rm1.89

P/E is 225

RUBBEREX

EARNS 3.67 SEN

ANNUALISED 3.67 x 4 = 14.6

30 P/E = 30 x 14.6 

= Rm4.38

CURRENT PRICE Rm3.55

COMFORT GLOVE

This announcement is dated 12 June 2020.

EARNINGS 2.8 SEN

ANNUALISED 2.8 x 4 = 11.2 SEN

P/E 30 = 30 x 11.2 SEN

= Rm3.36

CURRENT PRICE IS Rm3.93

FROM HERE WE SEE RUBBEREX TO BE UNDERVALUE & CAREPLUS OVERVALUE & BOTH HLT & COMFORT FAIRLY VALUED

BUT ALL THE BIG 4 GLOVES HAVE QUITE HIGH P/E

1) SUPERMAX P/E IS 79

2) KOSSAN P/E IS 66

3) HARTA P/E IS 126.2

4) TOPGLOVE P/E IS 45.43

SINCE THE BIG 4 GLOVE PRICES ARE IN HIGH RANGE MOST RETAIL INVESTORS HAVE TURNED TO THE VACCINE THEME. CALVIN ADVISE AGAINST IT AS IT HAS A SMALL MALAYSIA MARKET IN COMPARISON TO EXAM GLOVES WHICH STILL GOT THE WORLD MARKET AT LARGE

AND THESE ARE THE TWO STOCKS TO INVEST

1) HLT GLOBAL AT 71 (P/E 34.8)

TARGET PRICE IS RM1.20 TO RM1.50

2) CAREPLUS AT RM1.89 (P/E 225)

TARGET PRICE IS RM2.50 TO RM2.80

NOW RUBBEREX IS CAPPED BY NEW MAJOR SHAREHOLDERS & COMFORT UPSIDE ONLY MEDIOCRE

THE TWO BEST VALUE COMES FROM HLT & CAREPLUS

HLT WILL REPORT A MUCH BETTER QUARTER AS ITS TWO DIVISIONS WILL REPORT BETTER PROFIT

ITS HL RUBBER INDUSTRIES' MEDICAL EXAM GLOVES FULLY SOLD TILL AFTER CHINESE NEW YEAR 2021

FOR BOTH HLT & CAREPLUS LAST QUARTER SETBACKS WAS DUE TO "IMPAIRMENTS"

NOW THAT THESE ARE OUT OF THE WAY

PLUS "EXPLOSIVE" PROFITS JUST LIKE THE MAJOR GLOVE COMPANIES THEY WILL BOTH REPORTED MUCH BETTER RESULTS!

MORE THAN THAT!!

AS TIMES OF TRUE BULL RUN HAS RETURNED CAN EXPECT BOTH HLT & CAREPLUS TO GIVE BONUS ISSUES SOON

SEE

BONUS ISSUES FROM HLT

07-Dec-2017	20-Dec-2017	BONUS_ISSUE	Bonus Issue	1 : 2
07-Dec-2017	20-Dec-2017	BONUS_ISSUE	Bonus Issue	3 : 4

BONUS ISSUES BY CAREPLUS

BEST REGARDS

CALVIN TAN RESEARCH
SINGAPORE

PLEASE BUY OR SELL AFTER DOING YOUR OWN DUE DILIGENCE