@freetospeak Why are analysts so afraid to assign higher PE for Supermax? The PE of Supermax is among the lowest in the industry given the current market price.

Facebook, Twitter and Alphabet share prices jumped last night on QR results showing better EPS than estimate. Only in Bursa the share price will fall despite superb EPS performance.... sigh.

@ToneeFa you said it better than me

Yes, the glove bubble has already burst 2 months ago. There won't be any 10% increase every week as per the period of Mar to Aug. Now that the fundamental has been established with clear visibility, the price will move slowly but surely. Meanwhile, there will be volatility due to short term traders trying to make their peanuts money.

I know there are many haters of KYY out there. Setting aside personal opinions, his projections are based on his vast experience as a businessman and founder of several listed companies. You may laugh at his EPS growth projections, and suspicious of his motive, but one thing for sure, he has business acumen, not your average analyst with no business experience. Say what you like, his TP of RM26 is not that far-fetched.

ASP is everything for an OBM company like Supermax. The key is to leverage on their established connections with ultimate consumers such as government health agencies to lock-in the price stickiness. This is something the the analysts are not convinced they are able to do this long-term, given the news on entry of new players and all the vaccine news.

@ToneeFa I believe the earnings growth is sustainable post FY2022, albeit with a lesser PAT margin, but definitely much higher than pre-covid. The many sifus such as @freetospeak and team have already done a good job in forward projection of earnings post FY2022.

I also agree with @wkc5657 that the investment environment play a crucial role in determining how the market will perform, as there are too many negative external factors now.

Institutional players such as IBs or fund management companies do have positions in TG and Harta, coz they are index component stocks. Supermax is currently having the highest earning growth, which is not expected by analysts. They are not convinced that this growth can sustain. However, if one is a successful entrepreneur, there is no way you will sit there without doing anything to ensure the earnings will be sustained long term, such as long term government contacts and diversification into complete PPE supplies.

All the noise on sustainability of earnings post FY2022 for glove counters are premature for now. Analysts are scared to give higher TP coz they are not on the ground, and only view things from the comfort of their office. Maybe that's why they will never be successful entrepreneurs in business. I bet all the glove companies especially OBM biz model such as Supermax already has in place plan B to sustain its earnings post FY2022. No successful business entrepreneurs will sit down and wait without any planning on how to take advantage of the current opportunity for long term benefits. All these analysts talk on no sustainability post FY2022 are just too simple minded for the real business world.

For those who ridicule KYY target price of RM26 based on undemanding PE15 with reasonable EPS growth, for once, he may be right.

No other sectors besides glove will be reporting earning growth in the next few quarters, maybe tech counters, but there are no such tech counters in Bursa. The investment choice is clear for Bursa, no need to argue over such simple fact.

However one look at it, Supermax is still the best stock in Bursa, from EPS, dividend, earnings growth, profit margin and future prospect.

Too many weak holders or short term traders in Supermax. Need funds to come in to stabilize the price like Harta or TG.

Harta is well supported despite QR not as good as Supermax.

Good fundamental stock like Supermax with clear visibility of future earnings for the next few quarters until end FY2021 only trading at trailing PE of less than 20...... really cheap sales.

When Supermax announced 4th quarter result of 400mil PAT back in Aug, the price was 12+. Now with more than 100% increase at 800mil, the price dropped to 9+... only in Bursa Malaysia.

Looks like the bombastic QR announcement yesterday was a non-event... then what does it takes to move the price? I thought earnings was the main catalyst.

@Agjl I also would like to think the same like you... but looking at the price movement trend, it seems both movements are identical.

Supermax and TG are like conjoined twins... now must wait for TG QR to move higher

The price of Supermax is also dependent on TG, if TG no catalyst to move up, Supermax cannot rocket also. Must follow taiko.

In all stock exchanges, when a company announce good results, the share price will increase. In Bursa, when a company announce good results, the share price will drop... haha Malaysia Boleh!

Why so many people asking to sell when the QR is so good? Are they hoping the price will drop for them to pick up? Short term traders?

The big question is why Supermax only trade at PE of 20 with such proven earnings while others companies announcing glove ventures with nothing to show but trading at PE of 40 and above? I really don't understand Bursa investors.

Net cash 2.36bil wow... no listed companies in Bursa has such cash holdings

Supermax dual listing in SGX...

Supermax profit 812mil.... Huat ahhhhhhh

I hope someone can make a study on the amount of warrants issued and the amount of mother shares needed to hedge the warrants. If IB were to sell the mother shares to realise gains to pay warrants holder, would the selldown affect the price in the market. SC and Bursa shld be able to analyse this.

@niubility Thanks. Ya, each time after results, the price will gg... only in Bursa

@warrenG Thanks bro.

@warrenG if really warrants, why Harta is valued much higher than Supermax. Harta also has warrants expiring. Why IB not pressing Harta?

What is the fair PE for Supermax? 10, 15, 20, 30? Why is the market giving it such a low valuation?

@NoNonsense
I hope the pattern doesn't repeat itself this time.

Even PAT 800mil, the price will drop after result announcement. This is Bursa, where high earning growth companies valuation is cheap but no fundamental goreng companies high valuation.

Whether it is undervalue or not depends on the PE that you are expecting. PE of 35 is very demanding.

Mercator is Europe-base, they would have more information on the pandemic situation in Europe and US. Meanwhile, Supermax price is still very undervalue as investors here are worried about unfounded vaccine news. Malaysian investors are really slow and always at the losing end.

The decision to start a private group is a bad mistake. Now all the thousand of silent readers will not have proper information but only read sell sell sell. The discussion in the private group will not help coz no one can read the comments.

90% of the comments here are calling for a sell. Looks like this will on put fear on the new retail investors to sell further tomorrow.

@freetospeak Good to see you are still giving good fundamental advice in this open forum instead of in the closed group. Your comment is what the silent readers will read instead of the sea of trolls.

Yttihs, hope you are reading this. You just made a big mistake by creating the private group. The naysayers have won coz you cannot take the heat.
There are hundred of thousands silent readers who seek information on Supermax here. They are the strong retailers that are currently supporting the glove counters and the bull run. 99% of them will just ignore the trolls but seek out advice from sifus.
One informative post by any sifu will have good impact to the community but 100 posts in a closed group will have no impact. This is what an open forum is for and you have just destroyed all the good work by the sifus in promoting and spreading good information on Supermax. I hope you realise what you just did is not helping but only reduce the flow of information and the discovery of the true value of Supermax. Now the trolls will have a field day in spreading false information.

@yytihs kindly add me to the group please. Thanks.

@yttihs Please add me. Thks.