THE INVESTMENT APPROACH OF CALVIN TAN

SUPERIOR SUPERMAX: A RISING STAR AGAIN DUE TO ITS FIRST MALAYSIAN GLOVE FACTORY ON US SOIL, Calvin Tan

calvintaneng
Publish date: Tue, 17 Dec 2024, 06:29 AM
calvintaneng
0 1,888
Hi Guys,

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

Dear Investors & Traders of i3 Investor's Forum,

4 years have come and gone swiftly since year end 2020 till now. Year 2020 witnessed the Glove Superbull of A Century when Supermax gave us Out-sized Returns of more than 1,000% upside gain from Rm1.73 to over Rm18.00 when we sold and left for Palm Oil

And now is the time to revisit Supermax


And these are the MAIN REASONS Why?


1) DONALD TRUMP 2 WILL REIGN ON JANUARY 2025. 

He will impose a 50% Tariff on China gloves plus up to 20% Tariff on all other Nations exporting to USA

The Exception will be SUPERMAX.

Why do we say so?


KOREA'S Hanwha Qcells sets the precedent

After setting up factory on USA Soil to manufacture Solar Panels - Hanwha Qcells complained to US Govt about Imports which impacted its business


In Response US Govt has raised High Barriers of Imports by High Tariffs to protect Hanwha QCells in USA


US slaps tariffs on South-east Asian solar panels, including Malaysia, over dumping allegations

Solar panels at the background as U.S. President Joe Biden speaks during a visit to Vernon Electric Cooperative in Westby, Wisconsin, U.S., September 5, 2024. — File pic via Reuters
 Solar panels at the background as U.S. President Joe Biden speaks  during a visit to Vernon Electric Cooperative in Westby, Wisconsin, U.S., September 5, 2024. — File pic via Reuters

WASHINGTON, Nov 30 — US trade officials announced yesterday a new round of tariffs on   solar panel imports from four Southeast Asian nations after American manufacturers complained that companies there are flooding the market with unfairly cheap goods.

It is the second of two preliminary decisions that President Joe Biden's Commerce Department is making this year in a trade case brought by Korea's Hanwha Qcells, Arizona-based First Solar Inc and several smaller producers seeking to protect billions of dollars in investments in US solar manufacturing.

Jinko Solar received duties of 21.31 per cent for products made in Malaysia and 56.51 per cent for those produced in Vietnam.

China's Trina Solar received a dumping margin of 77.85 per cent for products it makes in Thailand and 54.46 per cent for those it produces in Vietnam.

In contrast, the Commerce Department did not lay out any dumping margin for Hanwha Qcells products made in Malaysia.In October, the department had calculated subsidy rate of 14.72 per cent for the company.


Read again

Jinko Solar received duties of 21.31 per cent for products made in Malaysia and 56.51 per cent for those produced in Vietnam.

China's Trina Solar received a dumping margin of 77.85 per cent for products it makes in Thailand and 54.46 per cent for those it produces in Vietnam.

In contrast, the Commerce Department did not lay out any dumping margin for Hanwha Qcells products made in Malaysia.In October, the department had calculated subsidy rate of 14.72 per cent for the company.


THIS SETS THE PRECEDENT


USA WILL IMPOSE HIGH TARIFF ON CHINA GLOVES

USA WILL ALSO IMPOSE TARIFF ON ALL OTHERS (EXCEPT SUPERMAX) BECAUSE LIKE HANWHA QCELLS IT HAS ITS FACTORY ON USA SOIL


THIS SETS SUPERMAX APART FROM OTHER GLOVES IN ALL OTHER COUNTRIES EXCEPT USA


THE MAIN PURPOSE IS TO PROTECT JOBS FOR US CITIZENS: TO "MAKE AMERICA FIRST" AGAIN AS THE SLOGAN GOES!


2) THE SUPERIOR SHARP FORESIGHT OF SUPERMAX'S LEADERSHIP HAS BOUGHT 215 ACRES OF LANDS IN USA (CIRCA YEAR 2021) WHEN PRICES WERE CHEAP DURING COVID 19 LOCK DOWN TIME


For that let us Go See SUPERMAX: ANNUAL REPORT


Refer Bursa


Listed are 40 Real Estate Assets owned by Supermax


See property number 36


36. 14559 County Road 48, Rosharon,

Texas 77583, USA

Land

868,289 sq m.  Freehold......Rm 25,409,592


Let us now do a breakdown


868,289 sq meter for Rm25,409,592


First convert sq meter to sq feet by multiplying 10.764


so 868,289 X 10.764


= 9,346,262.796 sq feet


Now convert to Acres by dividing with 43,560


214.56 Acres



So to get cost per acre just divide price by acres


= Rm118,426 (Ringgit)


In US Dollars?

divides by 4.45

= US26,612 Per Acre


Now what is the Current price in Rosharon, Texas, USA


See


https://www.realtor.com/realestateandhomes-detail/11703-County-Road-48_Rosharon_TX_77583_M98388-42556?from=srp-list-card


Land for sale
$499,000

11703 County Road 48, Rosharon, TX 77583

  • 3acre lot3 acre lot


Asking price is USD499,000 for 3 Acres


Per Acre is US166,333 


That means in 3 Years Land prices have gone up by 500% to 600% after Covid 19 over


Now people think Supermax got high cost operating in USA

This is erroneous as its land cost only Rm118,000 while in Batu Kawan, Selangor  or Sedenak land prices now are as high as Rm2 Million an acre


This is only One of 40 Assets listed & mentioned in Supermax Properties Owned


In Kapar, Klang & Serendah & many more places SUPERMAX also own lots of freehold lands listed at old book value


SuperMax has a Net Asset Value of Rm1.63

And if revalued it should be much much higher


Not only is Supermax's Assets Superior

It has A Superior Cash Hoard


3. SUPERIOR CASH HOARD VERSUS TOPGLOVE, HARTA & KOSSAN

Refer Bursa


See


Supermax has Rm1.0248 Billions in Cash


or 

40.11 sen pure cash


At Rm1.11 the Cash by percentage is 36.1%



Topglove cash is Rm549 millions

or 6.14 sen


At Rm1.35 cash by percentage

= 4.5% (Among the lowest as it has used and burned its cash in share buy back)


KOSSAN Cash is Rm1.019 Billions

or about 39.8 sen


At Rm2.61

Cash by percentage is 15.2%


HARTALEGA Cash is Rm1.282 Billions

or 37.15 sen


At Rm3.82

cash by percentage is 9.72%


From above Figures we See SUPERMAX Cash of 36.1% Is the Highest Overall




4) TRUMP Promised to PUMP & PUMP MORE CRUDE AS WELL AS SHALE OIL


Very good for Supermax as its feedcost will be much cheaper for its Nitrile Gloves



5) LOWEST TAX REGIME WHEN TRUMP2 BRING DOWN TAX TO 15% FROM 21%


SuperMax will benefit as less tax means better bottom line



6) SUPERMAX - A TURNAROUND STORY


With Locked in ASP in completion SuperMax can raise its ASP price. Esp in USA where competition is almost nil


Plus from Topglove latest AR we can see USA is the Best Growth Market for Gloves


Exerpts from Topglove: Section 2: Message from TopGlove leaders (Refer Bursa)

FROM REVERSAL TO RECOVERY: GLOVE ON THE

REBOUND

Having concluded FY2024 on a positive note amidst a

challenging environment, we are encouraged by the progress

the Group has charted and more importantly, upbeat about

the financial year ahead.

The glove industry has already entered a recovery phase,

which is fast gaining momentum. With excess glove stocks

fully depleted, this has set in motion an ongoing inventory

replenishment cycle, driving strong demand growth. Given

the increasingly favourable demand-supply dynamics, the

Group expects to see continual increase in Sales Volume and

utilisation rate, setting the scene for an inevitable return to

black within the new Financial Year 2025.

Moreover, the Group anticipates enhanced business

opportunities in the U.S. market following the United

States Trade Representative (USTR)’s September 2024

announcement of impending tariff increases on Chinese

medical and surgical gloves from the existing rate of 7.5%

to 50% effective January 2025, and to 100% by January

2026. Ahead of these timelines, customers in the U.S. where

our sales have already been increasing exponentially, are

expected to start sourcing from alternative suppliers. With

this, Top Glove as a major glove exporter to the U.S. is

optimally positioned to capture more market share from the

trade diversion


what is good news for Topglove will be GREAT NEWS For SUPERMAX IN USA


Esp among Dentists SuperMax has captured a Major Share of business



7) BIGGEST PUSH: FROM TRUMP2 GETTING MORE FACTORIES SET UP FOR US CITIZENS' JOBS

TRUMP Has Kept to his Election Promise so far


Pushed Tesla to multi year high

Pushed Bitcoin over Usd100K

Next will be High 60% Tariff on China and as high as 20% tariff on all others

HE WILL PUSH SUPERMAX TO BUILD PHASE 2, 3 & 4 ALL THROUGH HIS REIGN FROM JAN 2025 To 2029


4 Great Years of Growth For SUPERMAX in USA like never before


According to SUPERMAX it will eventually produce 19.2 Billion Gloves (Starting with 4.2 Billions)


Let us Do A simple projected Calculation


19.2 Billion Gloves 

Current medical gloves sold in Walmart is about 35 sen (ringgit) per piece

If Supermax sells at Walmart price of just 35 sen a piece and if we take a 30% net profit


it will be 10.5 sen

And 19.2 Billion Pieces mean

That will be Rm2.016 Billions Net Profit


= 78.92 sen per year


or 19.73 sen per qtr


If we assign 10 P/E


it will be Rm7.89


if 20 P/E 

then Rm15.78


and if 30 P/E

= Rm23.67


At 30 P/E it will be a repeat of 2020 Superbull Time


Of course we do not expect year 2020 to be repeated

a 10 P/E of Rm7.89 Target Price will be good enough



With Kind Regards


Calvin Tan


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



Then one day in April 2020 SUPERMAX DID A SHARE BUY BACK AND GAVE THIS SIGNAL

See

Immediate Announcement on Shares Buy Back

SUPERMAX CORPORATION BERHAD

 

Date of buy back
30 Apr 2020
Description of shares purchased
Ordinary Shares
Currency
Malaysian Ringgit (MYR)
Total number of shares purchased  (units)
2,888,000
Minimum price paid for each share purchased ($$)
2.420
Maximum price paid for each share purchased ($$)
2.480
Total consideration paid ($$)
7,093,885.47
Number of shares purchased retained in treasury (units)
2,888,000
Number of shares purchased which are proposed to be cancelled (units)
0
Cumulative net outstanding treasury  shares as at to-date (units)
68,888,000
Adjusted issued capital after cancellation

(no. of shares) (units)

1,360,309,760
Total number of shares purchased and/or held as treasury shares against total number of issued shares of the listed issuer (%)
5.06414

 

Remarks :
Total number of issued shares is 1,360,309,760 ordinary shares. The Company had not cancelled any treasury shares.

 


Announcement Info

Company Name
SUPERMAX CORPORATION BERHAD
Stock Name
SUPERMX
Date Announced
30 Apr 2020
Category
Immediate Announcement on Shares Buy Back
Reference Number
SB1-30042020-00002

And on April 30th Supermax closing price opened at Rm2.38 and ended up 10 sen to close at  Rm2.48

See

Number of shares purchased retained in  treasury (units)
2,888,000
Cumulative net outstanding treasury  shares as at to-date (units)
68,888,000

 

Ok let us go back in time to April 30th 2020 to see this actual posted comment below

Stock: [SUPERMX]: SUPERMAX CORP BHD

 

Apr 30, 2020 5:39 PM

 

Report Abuse 

Secret code in message decoded

2888

2 in Chinese means easy

888 means triple prosperity

So just buy Supermax then

So easy to prosper

Got it?

 

Indeed. It was a timely morale booster to all. And from Rm2.48 Supermax gradually climbed and climbed to Rm6.00




STARTLING REVELATION


Latest SBB



Notice of Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016

SUPERMAX CORPORATION BERHAD
Date of buy back from
25 Nov 2024
Date of buy back to
26 Nov 2024
Currency
Malaysian Ringgit (MYR)
Total number of shares purchased (units)
2,888,000
Minimum price paid for each share purchased
0.855
Maximum price paid for each share purchased
0.870
Total amount paid for shares purchased
2,498,507.25
The name of the stock exchange through which the shares were purchased
Bursa Malaysia Securities Berhad
Number of shares purchased retained in treasury (units)
2,888,000
Total number of shares retained in treasury (units)
172,888,000
Number of shares purchased which were cancelled (units)
0
Total issued capital as diminished
0
Date of Notice
04 Dec 2024
Date lodged with registrar of companies
04 Dec 2024
Lodged by
Boardroom.com Sdn Bhd

Announcement Info

Company Name
SUPERMAX CORPORATION BERHAD
Stock Name
SUPERMX
Date Announced
04 Dec 2024
Category
Notice of Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016
Reference Number
SB2-03122024-00003


SUPERMAX NOW RM1.11


HOW HIGH WILL SUPERMAX REACH THIS ROUND 2?


TRUMP2 = SUPERMAX2





More articles on THE INVESTMENT APPROACH OF CALVIN TAN
Discussions
2 people like this. Showing 15 of 15 comments

calvintaneng

The Secret Code of

2,888,000 Sbb

On 30 April 2020

Then again this 2nd time

2,888,000 Sbb

Message done on purpose!

Now is the time for Supermax to turn Supersonic again

https://klse.i3investor.com/web/blog/detail/www.eaglevisioninvest.com/2021-04-29-story-h1564201060-THE_ONCE_IN_A_CENTURY_SUPERBULL_OF_MEDICAL_GLOVE_MY_STORY_ON_SUPERMAX_C


calvintaneng

56,823 posts

Posted by calvintaneng > 10 hours ago | Report Abuse

December 4th 2024

Another 2,888,000 sbb

See

👇

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3506541

1 month ago

Patrick Chong

this is a good write up, sifu Calvin.

1 month ago

sell

Time to sell. Latest QR is biggest ever loss. Wait for QR to turn positive first.

1 month ago

calvintaneng

Supermax is a turnaround


there is something inside this Company that will cause it to emerge and outclass, outperform all others by the foresight of a single move of it's Factories onto the land of USA -

known to the Pilgrim Fathers' as

The Land of the Free & Home of the Brave

https://youtu.be/DYyLrrQ0Os4?si=_NLBkHv9skwGo867

1 month ago

calvintaneng

Supermax's Leadership with it's far sighted vision and pro-active management has built the 1st Malaysia Glove Factory on USA homeland

https://youtu.be/Ne3WwNvq0s4?si=qFSF2LIPd1J4jP0f

1 month ago

calvintaneng

True to its name

just one day after announcement of free bonus and free warrants

Management of Supermax submitted To Bursa for approval today

Really Super Speed

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3510316

1 month ago

calvintaneng

Supermax as illustrated by a

3 Stage Rocket
Now all 3 stages of a Rocket are in progress

China gloves
Malaysian Gloves
Supermax gloves

by Jan 2025 Trump will impose 50% tariff on China Gloves and by 2026 it will be 100% tariff

so the stage 3 rocket booster, ie, China will be discarded and blocked from Us market

the rocket continues ....

then Stage 2 rocket will also disengage as Trump further block Topglove, Harta and Kossan for not building Glove factories in USA

high tariff to keep them out

leaving only stage one rocket Supermax to build phase 2, phase 3 & phase 4

to the intend that USA citizens will get jobs to MAKE AMERICA GREAT AGAIN

SUPERMAX WILL BE THE SOLE CHAMPION ALL BY ITSELF

AS IT HAS BUILT THE RIGHT FACTORY AT THE RIGHT TIME IN THE RIGHT PLACE

1 month ago

calvintaneng

See if Supermax can cross Rm1.30 by this week

1 month ago

calvintaneng

Rm1.22 now


see by tomorrow 27th Dec 2024 if Supermax will break through Rm1.30 barrier

1 month ago

calvintaneng

50% tariff is on

Supermax is good

3 weeks ago

calvintaneng

SUPERMAX - A TURNAROUND STAR!

SHINING SO BRIGHTLY

SUPERMAX (7106) IN CYCLICAL UPTURN (NOT AFFECTED BY DEEPSEEK) AS IT IS INTO HEALTHCARE; TOTALLY UNRELATED BUSINESS), Calvin Tan

https://klse.i3investor.com/web/blog/detail/www.eaglevisioninvest.com/2025-01-30-story-h498586274-SUPERMAX_7106_IN_CYCLICAL_UPTURN_NOT_AFFECTED_BY_DEEPSEEK_AS_IT_IS_INTO_

2 weeks ago

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