TRUMP IN POWER; SUPERMAX IN USA IS TOP BENEFICIARY AS TAX ON CHINA GLOVES 50% To 100% & OTHERS UP TO 20%, Calvin Tan

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THE INVESTMENT APPROACH OF CALVIN TAN

TRUMP IN POWER; SUPERMAX IN USA IS TOP BENEFICIARY AS TAX ON CHINA GLOVES 50% To 100% & OTHERS UP TO 20%, Calvin Tan

Publish date: Tue, 12 Nov 2024, 11:13 AM

Dear friends of i3 Forum

Why Supermax?

Yes. By end of 2020 when we heard China was building its Own Glove Factories we sold all Gloves & Went into Palm Oil

Now after 4 years we are looking at Gloves again - Especially Supermax

Why?

Let us do a Comparison between Hartalega (very popular) & Supermax (mostly overlooked by Analysts

Please Refer to Bursa

1. HARTALEGA

SUMMARY OF KEY FINANCIAL INFORMATION
30 Jun 2024

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		30 Jun 2024	30 Jun 2023	30 Jun 2024	30 Jun 2023

		$$'000	$$'000	$$'000	$$'000
1	Revenue	583,839	440,038	583,839	440,038
2	Profit/(loss) before tax	41,139	-44,737	41,139	-44,737
3	Profit/(loss) for the period	31,904	-51,170	31,904	-51,170
4	Profit/(loss) attributable to ordinary equity holders of the parent	31,926	-52,469	31,926	-52,469
5	Basic earnings/(loss) per share (Subunit)	0.94	-1.54	0.94	-1.54
6	Proposed/Declared dividend per share (Subunit)	0.35	0.00	0.35	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 ($$)	1.3700		1.3600

Harta this qtr earned 0.94 sen

Now its NTA is Rm1.37

At Rm3.27 with NTA Rm1.37

Harta is selling at 2.38 Times its Book Value

Less us look at its Balance sheet

Harta has about Rm1.35 Billions Cash

Or about 39.7 sen cash

Cash is about 12% of Share price

2) SUPERMAX

SUMMARY OF KEY FINANCIAL INFORMATION
30 Jun 2024

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		30 Jun 2024	30 Jun 2023	30 Jun 2024	30 Jun 2023

		$$'000	$$'000	$$'000	$$'000
1	Revenue	179,644	222,601	646,170	821,092
2	Profit/(loss) before tax	-122,221	-15,807	-179,370	-189,485
3	Profit/(loss) for the period	-131,579	-21,773	-183,057	-171,417
4	Profit/(loss) attributable to ordinary equity holders of the parent	-127,929	1,412	-175,029	-140,864
5	Basic earnings/(loss) per share (Subunit)	-4.97	0.05	-6.80	-5.34
6	Proposed/Declared dividend per share (Subunit)	0.00	3.50	0.00	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 ($$)	1.7500		1.8

Supermax registers a loss of 4.97 sen

Current price is 83.5 sen

Its NTA is Rm1.75

That means it is selling at 53% Discount to NTA

Let us see its Accounts

Its Cash is Rm1.2 Billions

Or about 46.6 sen (pure cash)

At 83.5 sen

Supermax consists of 55.8% Cash

Now if you take a look at Rm1.75 Net Assets

There are many prime lands owned by Supermax

Among them are Prime Real Estates bought in USA for Glove Expansion

Refer Bursa

35. 1899 Sequioa Drive , Aurora,

IL 60506 USA

Land and

building

10 years 56,640 sq m Freehold Rm34,892,682

36. 14559 County Road 48, Rosharon,

Texas 77583, USA

Land 868,289 sq m Freehold Rm25,409,592

Supermax has now completed building its Glove Factories (Phase One)

And will start production next month in its Fully Automatic Glove Production Lines just in Time When Trump comes back into power

He will impose 50% tariff on China glove for 2025 & 100% tariff (2026)

For all others he will impose a 20% tariff

This augurs well for Supermax

Since USD has appreciated in USA against ringgit Supermax Assets also gone higher

Harta is Rm3.27

Supermax is 83.5 sen

Trump's will reign from Jan 2025 to Jan 2029

Let us see How Supermax performs against Harta (and all other Gloves) when Jan 2029 arrives ; just 4 short years away to know the truth

With Warm Regards

Calvin Tan

Please buy or sell after doing your own due diligence or consult your Remisier/Fund Manager

Discussions

Be the first to like this. Showing 1 of 1 comments

calvintaneng

SUPERMAX VERSUS TOPGLOVE, KOSSAN & HARTA, Compare & Contrast, By Calviun Tan

https://klse.i3investor.com/web/blog/detail/www.eaglevisioninvest.com/2024-12-27-story-h496893176-SUPERMAX_VERSUS_TOPGLOVE_KOSSAN_HARTA_Compare_Contrast_By_Calviun_Tan

3 weeks ago

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