Rm5.00 will be reached soon !!

Maybe nobody wants to sell to Datuk Ong at price of 1.80, so he busy sapu-ing from Bursa open market !!! lol

Good account analysis (repost) :-

< Personal Opinion >

Let me just reason it out. A loss of RM0.260mil is mainly due to a decrease in revenue due to a shorter business operation period and a written-off goodwill. From the previous QR, goodwill recorded in the Balance Sheet is RM1.059mil while the current QR, it is RM0.365mil, meaning to say, RM0.694mil got written-off. (If you happened to search for the usual goodwill impairment from older QR, you can see how the impairment is done. Well, I got no idea also how this goodwill is generated at first, so I don't want to comment much on impairing/write off, let's just take it as RM0.694mil got written off.)

So I can roughly add the amount back to get my operating profit when there's no write off for goodwill.
RM0.210mil + RM0.694mil = RM0.904mil from revenue of RM8.476mil (margin is 10.67%)
Compare with last year, RM1.328mil operating profit from revenue of RM9.383mil (margin is 14.15%)
Clearly margin has dropped in the current quarter ended May 2020 as compared to the quarter ended May 2019.
Anyway if you look at page 4 of the QR, table B1: Review of Performance, the company failed to realize they did a mistake in the representation of data. The second and third columns should refer to 3 months instead of 12 months. This issue happened a few times in the previous QR release also if anyone happened to realize.

If we compare the full financial year 2019 (margin: 7.1%) and 2020 (margin: 11.9%), the lower margin in 2019 is mainly due to higher employment cost and an increase in operating costs (LPG and raw material price). But does it justified to have share price around RM0.20 last year but RM0.645 now with this result? (Maybe on a good prospect under the current pandemic, but I don't know and I got no comment.)

Sum it up :- right booming business sector but run by lousy management ! The old sloppy CEO shall resign and elect a young vibrant aggressive one !!

F * C K !!
I remember few months ago I read sth from uncle Phillip that this ice cream is run by rich 2nd generation , they don’t bother to expand business or get more sales , just relax and earn stable income , petit dividends will suffice the major shareholders !
That’s why you can’t see f*cking growth ! The management also lazy to capitalize on this glove boom time to expand ! No wonder been keeping quiet and sleeping in the office ! F them !!

I have a feeling this counter will overtake comfort once their QR up to June be announced next month !
Remember , they are still the cheapest glove maker in terms of market cap in bursa !!

Now Spain top the list in Europe for infected covid 19 cases ! They will rush to buy gloves at ANY costs !! Rubberex happened to be there to sell them !!
Fellow investors pls take note !!

Just read the news Spain is experiencing swelling 2nd wave of covid 19, rubberex has a trading office in Spain (contributing around 20% of their revenue ) , would their Spain trading office sell gloves with higher margin or ASP ? ( just like Supermax) ??

I can only confirm the Q result must be out by 30-7-20 !

Careplus past results not that solid, and can run into huge losses but rubberex are well managed with almost no loss for past 10 years !! also no or minimal financial charges due to net cash position

For careplus, actual EPS (minus "one off item") is 4 cents only (up to June , 20) , Rubberex up to March , 20 already can deliver 3.67 cts, so up to June,20, should be no problem to deliver EPS 6 cents !!
My observation !

Rubberex's EPS up to June, 20 shall be = 6 cent (easily, taking into account April-June crazy ASP) !
6 x 4 = 24 cent annualized and forgot about the increase in ASP from July - Dec !
PE = 20, value = 20 x 24 = 4.80
PE = 30, value = 30 x 24 = 7.20

I only use PE 20-30, conservative figure again to compute the above conservative value !!
(top 4 all use up to PE 40 to compute !!)

Up to March, 20, Rubberex 's EPS = 3.67, share price of R is 3.90
Up to April, 20, Comfort's EPS = 2.8, share price of C is 4.70

Which is more under value ?? YOU decide !!!

no insiders selling even at 60-65 cent is good news !!
They know their products are selling like hot cakes or hot ice-cream !! LOL

Actually, my research shows that rubberex's balance sheet is more solid and stable amongst all small cap glove stocks !! steady profit earnings, dividends, net cash 30 mils (can expand capacity anytime), most of their properties are valued at 1990s price !! (very under value in terms of NTA )

Just that they are a old company with most directors, managers over 60-70 yrs old, just do thing slowly steadily and do not keen on expanding like Top 4. that's why they sold all their shares to Datuk Ong & partners for retirement recently !!

Now Datuk Ong & partners aged 42 ++ , they will be keen to expand and grow the company aggressively !! and DAtuk Ong is also major shareholder in a listed chemical company , hope he an use his knowledge in chemistry to invent a break through technology gloves going forward , even can rival Harta (famous in innovate new products for glove ) , just my 2 cents !

will revisit 0.70 ++ soon !!

This is the cheapest glove counter you can still invest in if you have missed the boat !!

This rubberex is the smallest pure glove maker in terms of market cap (1 bil) , even carplus rise up to 1.5 bil for the past few days !
It will catch up with all the other tai Kohs , sai Kohs soon .... !!

If you are a smart glove company investors, ignore those vaccine news but take caution on news of any development of giant glove factories in China !!

cavid or no covid , vaccine or no vaccine, the demand for gloves can only UP UP UP !!!!!

The only fears for Malaysia glove makers are ... whether world factory China can mass produce gloves in this 1-2 years time and compete with them !!

when the vaccine is in mass application all over the world, the demand for glove will even go higher as the world need even more gloves to deliver vaccine to even more human !!

Use your brain to think logically, nowadays gloves are used for medical front liners to handle covid-19 patients only, once vaccine in mass application, many many many x100000000000000000000000000 more gloves will be used for patients and non-patients (like you and me !!)

hopefully careplus 's share price rise could also influence all other small cap glove counters to go up together !!
Careplus 's QR up to June = 20 mils,
Rubberex 's QR up to Mac (before crazy glove -ASP) = already 10 mils, so up to June QR = easily 30 mils !!
I think Dato Ong knows about that, so he is trying to press down the price to collect at cheap before they announce latest QR !!

Aramco, this is rubberex forum, you have posted wrongly !!

DLLM99 ... simple logic, if Dato Ong is desperate to buy more rubberex shares, then most minority shareholders can gang up and hold UP the price and sell to him at RM4.50 then ! hehehe

KUALA LUMPUR (June 22): Chemical firm Hextar Global Bhd's executive director Datuk Ong Choo Meng and his 90%-held Hextar Rubber Sdn Bhd have acquired an additional 20.63% stake in Rubberex, raising their collective interest to 50.18% – above the 33% threshold that triggers the mandatory general offer for the remainder shares they do not own in the company.

The stake, comprising 57.25 million shares, was bought at RM1.80 cash per share or RM103.05 million in total from Seng Sheng Enterprise Sdn Bhd, Datuk Seri Chiau Beng Teik and Peh Lian Hwa, via direct business transactions.

Notably, the purchase price is at a significant 38.4% discount from Rubberex's closing price of RM2.92 today. Year to date, Rubberex's share price has grown about six times from when it was trading at 54 sen apiece on Dec 31, 2019.

Post-acquisition, Ong and Hextar Rubber control 139.22 million shares in Rubberex, up from 81.97 million shares or 29.55% previously, according to the notice of unconditional MGO sent by the duo's representative, M&A Securities Sdn Bhd, and filed to Bursa Malaysia this evening.


As such, the duo or joint offerors are obliged to extend a mandatory takeover offer to acquire all the remaining 138.21 million Rubberex shares which are not already owned by them at the same RM1.80 per share, cash.

The offer is not conditional upon any minimum level of acceptances as they already hold more than 50% of the voting shares in Rubberex.

The offerors, however, intend to maintain the listing status of Rubberex on the Main Market of Bursa Malaysia.

Note that yesterday he also made announcement to deal with rubberex share ...
Don't know buy more or sell ??
that is the interesting move !!

Since he already made "artificial" move for Mandatory general offer, very likely he will buy more in the market !! Just my 2 cent

He over bought the rubberex share up to 50% more and trigger the mandatory take over rule, by bursa's SOP, he needs to make mandatory offer to all the minority, and of course if he offer a price, he needs to have the actual funds to buy all up !
I think he just "saja" offer according to procedure , who is so stupid to sell to him at that price ?
End of the day the MO will fail, and the share price will continue to go up .... ! for sure !

all small cap glove or glove related counters will go LIMIT UP soon !!!!

COMING !!!!!!!!!!!!!!!!

Chun Chun Call Calvin Tan goes to promote HLT (loss making company) nowadays !! :(

After finished frying glove big 4 , small 4, cheat 4 etc ....
All hot money is coming to baby glove play Ice cream ... FOR SURE !!!

Reproduced the HL Research for your reading !!
Fund manager is coming to fry liao !! !!

HL Research

Author: HL Research | Latest post: Mon, 20 Jul 2020, 8:44 AM

Investment research on growth stocks.

Disclaimer:

Please note that the views, thoughts, and opinions expressed belong solely to the author, and not necessarily to the author's employer, organization, committee or other group or individual. None of the posts written on this blog constitute a buy or sell call.

Blog Headlines (by Date) Blog Index
ESCERAM: Beneficiary of the glove boom
Author: HL Research | Publish date: Mon, 20 Jul 2020, 8:44 AM

After a few years of poor returns for the KLCI, Malaysian investors are now seeing an unprecedented once-in-a-lifetime opportunity with the glove boom. Our investors at a glance:

Experienced retail investors would have already taken advantage to make back their 2018-2019 losses and shift their funds away from growth-stagnant "value" stocks.
Day trader uncles enjoying the volatility - 10%-20% swings almost on a weekly basis.
Fund managers and investment banks finally buying in into glove companies despite lofty valuations, entering late and influenced by FOMO.
Fish sellers, chicken rice sellers, college students, etc. are opening brokerage accounts as we speak to buy in.
There is a wise saying by a guy named David Tong / WealthArchitectToU, "Don't chase high ah." I am inclined to agree.

Nevertheless there looks to be a major opportunity in ES Ceramics Technology (KLSE: ESCERAM (0100) ), based on the fact that it's current price level is undemanding relative to the glove boom beneficiaries.

It follows an almost similar price trend to the big glove players although not a glove manufacturer itself.

And most importantly, SHOWS CONSECUTIVE PROFIT GROWTH and FUTURE GROWTH POTENTIAL.

(These are two key factors in an upward price trend, especially in the KLCI).


Some background:
You can read up all about their business on their corporate website and on i3investor. To summarize, their main business is in manufacturing glove formers for the glove industry.

https://www.esceramics.com.my/

When do glove companies need glove formers? Well, when they embark on an expansion of course.

Valuation
I would not get too caught up in the numbers, although it is pertinent to verify its fundamentals.

They have no debt
Relatively cash rich at ~RM20mil
PE of 30 (very good for a company primed for growth)
Profit margin between 7%-11%
Right, let's move on to the growth story.

A brief history of H1N1:
During the H1N1 Swine flu pandemic, ESCERAM experienced 4 consecutive quarters of stable profit growth from Apr 2009 - Apr 2010. This period of revenue and profit growth for the company correlated with that of TOP GLOVE and SUPERMAX.

ESCERAM:

TOPGLOVE:

SUPERMAX:

The correlation above is very promising. We are talking about a once-in-a-lifetime opportunity not only for glove makers, but also for those who have a stake in the game like ESCERAM.

Where is the growth?
We know that all the major glove companies in Malaysia, Top Glove, Supermax and Comfort Gloves, are embarking on production lines expansion in order to meet the worldwide demand. ESCERAM is perfectly positioned to take advantage of this opportunity.

Nevertheless what really interests me is its business in Thailand, where it comprises 60% of the groups revenue, and had achieved 48% growth in FY2019. While Malaysians are gloating "Malaysia Boleh" because of their supposed moat in the glove industry, in reality Thailand also is a major producer and is the world's largest rubber producer, hence they enjoy the low manufacturing costs as well.

Below is an extract from ESCERAM's 2019 annual report:

The Thai business has essentially fueled 4 quarters of consecutive revenue and profit growth. Malaysia biz is good, but the Thai biz has been a game changer.

I struggled to find out who are ESCERAM's major customers / paymasters in Thailand. There are some rumours that one of them might be Sri Trang.

If you don't know who Sri Trang is, they are Thailand's largest glove manufacturer:
https://www.theedgemarkets.com/article/sri-trang-gloves-surges-first-thai-listing-outbreak

Despite the unknowns, what we do know is that ESCERAM’s Thai factory is located in Sadao City in the southern Songkhla province, which coincidentally is where the big three of Thailand Gloves are located (Sri Trang, Mercator Medical Thailand and Hycare International). All of these companies factories are within a 20km radius.

Verdict:
At 54 sen, it still has plenty of legs to run considering the exponential growth it is about to undergo. The industry is going through an unprecedented phase; how well ESCERAM does entirely depends on whether their management can make the right moves in an almost perfect setting.

FYI: 4Q2020 report is projected to be released in the last week of July.

https://klse.i3investor.com/blogs/HLresearchblog/2020-07-20-story-h1510631202-ESCERAM_Beneficiary_of_the_glove_boom.jsp

Hong Leong Research just made a write up on Ice Cream !!
YES !! Time to Top Up and Vroom Vroom Vroom >>>>>>>>>>>>>>>>

my previous research :-

"My future PE calculation :-
If a year annualized profit = 4 ct (realistic as per their best 4Q total in 2016), and net cash of 10ct per share (excluding from PER computation) ,
PE = 20 (conservative) , fair value = 80ct + 10ct = 0.90
PE = 30 , fair value = 1.20 + 10ct = 1.30
PE = 40, fair value = 1.60 + 10ct = 1.70

remember, this is a company with proven track records for accurate estimate, unlike those loss-making company you just can only fantasize their profit & PE !!

f they can deliver 5ct EPS, (also likely as higher demand than last time round) :-
PE = 20, fair value = 1.00 + 10ct = 1.10
PE = 30, value = 1.50 +10ct = 1.60
PE = 40, value = 2.00 + 10ct = 2.10

From the lowest of 0.90 to highest of 2.10 as valuation, divided by 2 => 1.50 as median fair value "

LKL :- suppliers of mainly medical beds and health care accessories, their products can be produced all over the world, losses reporting for past 2 years, last 4 Q total loss = -0.37 (horrible, almost wipe out their NTA !) "

And many other over-hyped companies like HLT ! They didn't perform with good results previous years ! Not with minor losses but huge lossess that almost wipe out their NTA into PN17 !!

LKL & HLT keep showing huge loss or tiny profit .... CEO like to talk cock to cheat newbies to buy into their company and major shareholders start dumping shares !!
Ice cream, although have a "mouth-holding-gold" CEO, but keep showing profit Q after Q with net cash 20 mil !
which one would you choose ??

Many times like that already ! Jia Lat !!

YESSSSSSSS !!!!!!!!!!!!!!!!

The CEO's mouth is holding tight with gold, so it left to minority shareholders to do the promoting & publicity !!
Haiz .....

"ES Ceramics Technology Bhd manufactures and distributes ceramic hand formers. Its products offerings include examination formers, surgical formers, household formers, and breatings bag and balloon. Its formers are for continuous industrial use under heavy-duty conditions, to withstand the complex processes involving heat and chemicals to produce gloves.



ES Ceramics currently running full capacity at both manufacturing plants in Ipoh Malaysia and Thailand to meet the high demand from Glove Companies. This can be shown in Q3 2020 (Dec 2019 – Feb 2020) results which improvement in Sales and Profit compared to Q3 2019. Sales and Profit for Q4 2020 is slightly better than Q4 2019 due to closure of plant during the MCO.



For Q1 2021 (Jun – Aug 2020), the results will definitely improve as the Company running at full capacity. Both manufacturing plants have an outstanding order book of more than 1 million pieces of glove formers. The Company has increase the ASP as a results of high demand from glove companies.



Both Luxchem and Texchem linked to glove companies have moved recently. WATCH OUT ES Ceramic. "

All glove makers , big 4 or small 4, even some unscrupulous outsiders planning to capitalize to take over glove factory ... can’t wait to talk to media or release announcements everyday to spur up their share price !
Ice cream silent and indifferent attitude that really annoying me !
At this glove market boom time, the CEO just need to open his golden mouth and say some positive thing about this co prospect , the price will easily shoot up to RM1 already !!
Haiz !

the problem is the lazy attitude of the management !
They just want to collect fixed and ordinary salary & dividend and slow to expand !
Imagine, they have 20 mil in cash, their Hatyai factory have big space of land and can easily double their capacity to increase their sales by double !
Every glove makers in this region, malaysia & thailand, are busy working OT 24 hrs a day to spoil off their glove formers & ... hungry for more glove formers for their aggressively expanding output capacity ! Ice cream still too slow to act ? WTF !
Remember there are only 2 big size glove-former maker in malaysia, they should be smart enough to capitalize on that !!
Tonnes of money waiting for them to make also lazy to make ? Apalah ini ??

The CEO is real idiot !
During this glove boom time, he still refused to make money out of it ??
At least to expand production capacity to produce more sales !!
Disappointed with their "tidak apa" attitude, we shall attend the AGM and ask the CEO to resign and appoint somebody young and aggressive to lead the ship !!
Wong FooK LIn, please resign !!

Hopefully this Wong Fook Lin doesn't sell any share before end July (reposting of QR) !
Otherwise the share price might collapse !!
If he buys some more to support, then it will be like feeding vaigra to the share price !!!

The only hope is during their AGM, normally fixed end of September, hope the big bosses can say sth positive to boost the share price !!
They have been very facking quiet !!

many sharks hiding in this counter one loh !!!!

kariwong9394 ......

Always remember Buy Low, Sell High....

Always remember Buy Low, Sell High....

Always remember Buy Low, Sell High....


买卖自负 ...买卖自负 ...买卖自负 ...
06/07/2020 3:52 PM

It is easy to say that do !
How high is HIGH ?
How low is LOW ??
LOL

The increase of the selling does not cost the company anything. It is pure profit.

To be safe I cannot assume Comfort to double its selling price in the next quarter but it can gradually increase to double its selling price in the 4th quarter. In addition, I must consider the additional tax involved.

Assuming 100% minus 30% tax = 70% for 3 quarters. That is 23% per quarter.

1st quarter sale Rm 152 million, profit Rm 16.34 million

2nd quarter sale increases 23% of Rm 152 = Rm 35 million; profit Rm 16.34 million + Rm 35 million = Rm 51.3 million

3rd quarter profit Rm 51.3 + Rm 35 million = Rm 86.3 million.

4th quarter profit Rm 86.3 million + Rm 35 million = Rm 121.3 million.

Total for the year profit Rm 275.3 million

Total issued shares 580 million

EPS 47 sen

Based on P/E 20 target price Rm 9.40

Based on P/E 15 target price Rm 7.05

Based on P/E 10 target price Rm 4.70

This "glove hari cut" crazy already lah !
Everyday promote top glove desperately like a person obsessed ! LOL

For long & medium term investors, Just sit tight tight and enjoy the fruit lah !!
I will hold until i read their next Q report and see what the CEO says regarding the prospect !