Harta’s ethical pricing structure is commendable during this time of crisis and shortage of gloves. One of my regrets was to sell off early in anticipation of buying back later with gains from other stocks. I am a TopGlove shareholder now, but I still look foward adding Harta back to my portfolio.
Back in 2018, SCGM was in Tong’s value investing portfolio (theEdge). He bought scgm at an average RM1.75 and decided to cut loss at RM0.85 in July 2019, losing 50% following a string of disappointing quarter results. Since then, sales has grown but profits did not grow in tandem due to higher resin price, increase in depreciation and finance cost and jump in tax cost (due to deferred tax liabilities on new machinery and new kulai plant).
Those hiccups were temporary. The disposable food packaging industry is one of the beneficiaries of the covid19 outbreak. scgm’s healthcare venture is an additional bonus for the investors.
very ambitious plan to be the TopGlove of face masks. Based on theEdge's write up, they plan to establish 30 production lines over the next 2 years with a production capacity of 522 MILLION face masks per year. Pity some of the insiders sold off so early if the prospects were that good.
i first bought scomnet when it was a RM400 mil+ company. In the space of a few months, market cap is RM1billion. rather lofty valuation for a company whose revenue just crossed the RM100 million mark for the first time in FY19. sold all today and switched to TopGlove.
harta has been dislodged and no longer the world's largest nitrile glove manufacturer. top glove operating profits improved remarkably. harta has an edge with their AMG but how useful it is in clinical practice still remains questionable.
Invert : 10 years down the line, people will still travel. SARS, Zika, 9/11 etc came and gone. Covid19 travel restrictions are just temporary.
Invert : Many airlines are already on the brink of bankruptcy. Whatever funds AA raised might not be enough. Singapore Airlines raised S$15bilion (RM46 billion) to survive.
Invert : With all competitors wiped out, the crisis will benefit the fittest of the lot. AirAsia could possibly control most of the regional air traffic.
Invert : Business flying will be less popular in the future with more video conferencing, shift of travelling method to high speed rail. Airlines will continue to bleed cash.
Invert : Tourism may get sick, but it will never die. There's still a lot of room for growth for airline travel in SEA even with HSR in place.
Invert : Airlines are lousy business models. High competition, high operating cost, low margins, customers price sensitive.
Invert : New competitors could emerge in the future, but customer acquisition cost would be high. In next 5 years, Tony targets non-airline business to contribute 60% of revenue. If they can monetise all their data, AA can be a travel tech giant. not just an airline.
this phenomenon is not just seen locally, but also in the developed markets. investors generally accept 2020's earnings would be a miss. Most are looking beyond present conditions toward what they believe will happen in the future.
“The medical device segment has been the driver of the group’s growth over the last three years, a situation Shiue does not see changing anytime soon.. Based on the products that we are jointly developing with our clients, we can comfortably say that we see growth and visibility over the next 10 years,” he adds.
From the article in the Edge, there seems to be long term growth in this company. I wonder how big can Scomnet grow?
We can take a look at singapore to get an idea how our gov might reopen the economy : - Most retail outlets such as department stores and shops in malls and the heartlands will remain closed. They can continue to do business online. - Property viewings can only be done virtually. Property agents as well as insurance agents can't meet clients face to face, except when legally required to complete a transaction.
The Covid19 effect on shopping malls, theme parks and property business will persist for some time.
Although i was a shareholder for the past 5 years, I’m reluctant to participate in the rights issue due to the headwinds ahead. Tan Sri Jeffrey Cheah and family still holds a majority of Sunway shares. It will hurt them more than us, but I seriously hope Sunway pulls through this tough period.
Unlike the previous rights issue in 2013, which was to raise funds for expansion, land bank acquisitions and development of Sunway Iskandar, Sunway Velocity Mall.. This time round, the rights issue seems like a call of distress. Covid19 has impacted the tourism, hotel industry and shopping malls severely. I forsee the healthcare segment continue making operating losses due to low admissions. Property glut will persist for the next few years. Sunway has been doing RM4 billion/year revenue for the past few years. Post Covid, it’s hard to see where the revenue growth will come from.
"To put into perspective, Hartalega's market cap has more than doubled by RM19.02 billion to RM34.93 billion from its initial market cap of RM18.48 billion at the beginning of the year. It is currently ranked at 7th place among the largest market cap Malaysia companies.
The meteoric rise on Top Glove, its market cap ballooned by RM22.9 billion in value – the increment is equivalent to Dialog Group Bhd’s market cap of RM21.36 billion".