amazing results for both supermax and hartalega

what an amazing q result.

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.

had the opportunity to attend their virtual agm this year and got to learn more about the company. i'll keep mitech in my long term 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.

credit to Mr Leonard who was very frank about the challenges of the pharma industry in malaysia.

enjoying some kawan breakfast with the RM50 voucher from the virtual agm. some of their new products taste good!

list of airline casualties due to covid19:

https://www.forbes.com/sites/laurabegleybloom/2020/06/27/airlines-coronavirus-travel-bankruptcy/#5376aac5f696

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.

sunway lagoon reopened yesterday with good reception. good crowd at sunway pyramid as well, though not as big as before. I might have made a mistake selling my sunway shares.

Market cap :
- Harta : RM54.2 billion
- TopGlove : RM49.7 billion


I think over time, TopGlove will be the bigger company of the two.

made a top up today.

great results considering they operated with 50% capacity during MCO period. started a position during the pullback recently. one of the cyclicals that is a beneficiary of the covid19 outbreak.

there could be more than 1 cash call in the next 2 years.

quarter results not good enough for me. exited due to too much speculation.

thought it was unusual as well. years back scomnet rose and fall when it was linked to the then pm's son buying a stake in the company.

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.

hi micsoh, it is just a one off payment. you can look under "Conversion Price" :
"For the avoidance of doubt, no additional cash payment is required from ICPS holders for such conversion of the ICPS".

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3053340

this year's annual report provides much more info about the company compared to all previous years report. the crowd is starting to notice scomnet.

case of diworsification?

Just 6 months+ ago, Top Glove was at risk of being removed from the klci index. Today, it is the best performing stock on klci.

Market cap :
- PetChem - RM52.4b
- TopGlove - RM42.7b
- Harta - RM40.7b
- HL bank - RM32.0b

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.

I've reduced my holdings in F&N. F&N's near term outlook is poor. Nothing to look forward to since the dairy farm project has been cancelled.

https://www.bloomberg.com/news/articles/2020-06-14/stuck-at-home-the-world-is-eating-less-sugar

Invert, always invert.

What do I want to avoid : Airlines (AirAsia)

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.

Conclusion?

I am amazed at the ability of Green Packet to continuously raise funds. At least this one looks more promising compared to all their ventures over the years.

"To recap, Green Packet is in the process of making a 10% placement of its shares".

https://www.klsescreener.com/v2/news/view/688568

wouldn't be surprised if there's another private placement to raise cash for all their recent ventures.

Singapore will be one of the first few countries to emerge victorious from the covid pandemic

made a top up today. my 4th year holding Dialog. Dialog has always been fairly priced. Hard to get discount.

i think that is an amazing QR for top glove.

u never know.. next quarter's headlines could be "icap's earnings soar as TTB deploys all the cash at the market's bottom". stay tuned!

whatever debts or loans AA is taking might not be enough. Singapore Airlines raised S$15bilion (RM46 billion) to survive.

AmInvest revising their TP in the matter of weeks.
21/5 : sell TP RM4.45
9/6 : buy TP 7.70

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.

felicity with a good write up :
http://www.intellecpoint.com/2020/06/challenging-gloves-valuation-top-glove.html?fbclid=IwAR0WPirW3FOQaYTtVIv93TkXUQzJW7L8-W8m__yM6BQ1f6qIU69DMWPGbMA

The global disposable gloves market is a USD7.6 billion market (RM32.43 bil) and is expected to reach US$11.8 bil by 2025. Malaysia supplies 2/3 of the demand.

https://focusmalaysia.my/mainstream/top-supplier-malaysia-sees-no-quick-end-to-shortages-in-rm32-bil-gloves-industry/

this sounds like a red flag

https://focusmalaysia.my/mainstream/questions-over-leong-hups-acquisition-of-the-bakers-cottage/

“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?

https://www.klsescreener.com/v2/news/view/681757/supercomnet-technologies-wired-to-medical-device-market-growth

the largest company in ACE market. any shareholder like to share what's special about greatech?

gkent is still very much undervalued.

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.

https://www.thestar.com.my/aseanplus/aseanplus-news/2020/05/31/singapore-ends-covid-19-lockdown-from-june-2#cxrecs_s

New Coronavirus losing potency :
https://www.thestar.com.my/news/world/2020/06/01/new-coronavirus-losing-potency-top-italian-doctor-says#cxrecs_s

This could be true. The country hasn't had a Covid19 related death for more than a week by now.

stock guru mentioned supermax projected 12 month EPS : 48 cents
If using conservative PE 30, TP will be at least RM14

Will review in a year's 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.

Market cap :

- PetChem : RM50.4 bil
- Harta : RM42.4 bil
- Top Glove : RM34.6 bil
- HL Bank : RM29.4 bil

Wow..

"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".

https://www.theedgemarkets.com/article/it-mad-mad-glove-makers-market

Yes, the ICPS gives dividend, but where is the cash flow going to come from? all their business segments are badly affected by the Covid outbreak

i finally understood the pikachu analogy after asking my son. quite a useful investing analogy! haha

any sunway investors want to share how you feel about the cash call? keen to know your thoughts. tq

I wanted to hold on to my Sunway shares until the healthcare IPO. But the Covid19 effect made me rethink of Sunway’s long term prospects. The cash call made me part off with my investment in Sunway.