UK and Canada taken. Soon, US, Japan, Brazil and etc. lol

Supermax Healthcare Limited - Supplier of NHS Supply Chain.

https://wwwmedia.supplychain.nhs.uk/media/Nitrile-Examination-Gloves-NCP-FAQ-FINAL.pdf
https://wwwmedia.supplychain.nhs.uk/media/NCP-Vinyl-and-Latex-Examination-Gloves-FAQs-30-October-2019-T2.pdf

Once inclusive in KLCI component stocks, Supermax deserve higher P/E, at least on par with Kossan I hope.

Supermax is supplying 20%, 80%, 80% of Nitrile, Latex, Vinyl gloves to UK National Health Service (NHS) Supply Chain.

Carry forward RM120mil in Q1, bring forward RM224mil to Q2.

Insurance companies could invest in the stock market, and in fact they do, but investing in the stock market alone would be too risky because it's a cyclical market that swings from high bull market returns to considerable bear market losses. An insurance company has to know with a high degree of certainty that overall in any given year they're not going to absorb an unsustainable loss; therefore stocks can only represent a relatively small portion of their investment portfolios.

There you know why so many Insurance companies emerged as major shareholder of Supermax in annual report 2020. They are Prudential, AIA, Great Eastern and Tokio Marine.

Estimated Annual Capacity for following quarters.

Oct - Dec'20 Q2FY2021 25,069
Jan - Mac'21 Q3FY2021 26,175
Apr - Jun'21 Q4FY2021 26,863
Jul' - Sep'21 Q1FY2022 29,425
Oct - Dec'21 Q2FY2022 31,550
Jan - Mac'21 Q3FY2022 36,425

Double digit share price rally in 2 months time!

FY20Q3 ending March reported NP of RM71mil, Share price at RM1.69 and T4Q P/E 16.30 (historical 2-years mean PE 16.85) on 31/03/2020.

FY20Q4 ending June reported NP of RM400mil, Share price at RM8.00 and T4Q P/E 20.71 (historical 2-years mean PE 22.48) on 30/06/2020.

FY21Q1 ending September reported NP of RM790mil, Share price at RM8.42 and T4Q P/E 17.75 (historical 2-years mean PE 19.28) on 30/09/2020.

FY21Q2 ending December projected NP of RM_ _ _ _mil, Share price at RM_ _._ _ and T4Q P/E
_ _. _ _(historical 2-years mean PE 19.16) on 31/12/2020.


=====================================

Forecast 1: Maintain NP at RM800mil and 20% discount to historical trailing P/E.
FY21Q2 ending December projected NP of RM800mil, Share price at RM11.60 and T4Q P/E 15.33 (historical 2-years mean PE 19.16) on 31/12/2020.

Forecast 2: Projected NP at RM1150mil and 20% discount to historical trailing P/E.
FY21Q2 ending December projected NP of RM800mil, Share price at RM13.58 and T4Q P/E 15.33 (historical 2-years mean PE 19.16) on 31/12/2020.

See if the forecast TP can achieve by 31/12/2020?

Estimated orders received during 18/03 - 15/04 with manufacturing asp of $50 has been fully delivered. October onward will start to deliver the $70 & $110 manufacturing asp orders.

Additional 1.1b capacity per annum will commission on Oct'20 onward totaling c. 25b up to current capacity. Another 1.1b capacity per annum will completed and commission by year end 2020 with total annual capacity 26.2b.

For year 2021, 10.25b capacity will be install and estimated bring the total annual capacity up to 36.4b by 31/12/2021. Expected a 3%-10% additional capacity kick in for every following quarter from plant #13 - #17.

Trailing P/E 21.86 now, lower than historical mean of 25.

Unisem 2010 Revenue 1395, 2019 Revenue 1251 vs
Supermax 2010 Revenue 977, 2019 Revenue 1489

Who's organic growth? lol

Government give tax incentives, company contribute more on CSR, good!

Update: Transform Master Sdn Bhd, which is engaged in latex and nitrile processing and compounding, completed its capacity expansion by one-third from 1,500 tonnes a month to 2,000 tonnes in June 2020. "At present, it operates at about 75% capacity. Luxchem guided for higher orders to come in 2HFY20 or early FY21 in tandem with the commissioning of new capacity of several glove players.

I didn't denied that, I have said market expectations is RM500mil with current share price, it's still the lowest trailing P/E of 25.20 among the peers.

PAT of RM500mil is market expectations, RM800mil is good enough to push the share price.

Q1FY21 Projection:-

Manufacturing 1,609,157
Trading 1,327,555
Others 7,434
Eliminations -1,283,303
Consolidated Revenue 1,660,843
Operating Expenses 597,603
Share of profit of associate 19,533
PBT 1,172,609
Tax 257,974
PAT 844,563 #

Don't be sozai like Aramco lah, stop promoting the RM1Bil to influence the market expectations.

I hope Supermax can derive RM1.0Bil profit too, but from Careplus result, the blended asp increment doesn't looks good, estimated less than 10% increase after eliminated external factor.

------------------------------------------------------------
Careplus been the first released it's quarter ending September results. Guess what is the market expectations on Supermax Q1 based on current share price?

Careplus trailing P/E = 25.22
P/E = Market Cap x NP
25.22 = RM25,220Mil x NP
NP=RM25,220Mil / 25.22 = RM1000Mil
Market expectations of FY21Q1
= RM1000Mil - T3Q Earnings
= RM1Bil - (399,618+71,056+30,165)
= RM499,162,000
24/10/2020 1:39 PM

To me, this is the market expectations on Supermax coming quarter results. Supermax with higher book value, capacity, inclusive of MSCI and many more cannot be deserve lower P/E right?
24/10/2020 1:41 PM

Btw, are you Aramco? lol

In terms of book value, Top Glove has 3.2times bigger than Supermax and both are the highest net worth grow for past one year with 99% and 42% respectively compared to Hartalega and Kossan around 10+%.

If you want to make comparison in terms of earnings, estimated earnings of CY2020 for first 9-months are RM2.3Bil and RM1.3Bil respectively for Top Glove and Supermax. Both are good and growing still.

No need to talk down others, both Top Glove and Supermax are good and they are currently valued lower than average by market.

To me, this is the market expectations on Supermax coming quarter results. Supermax with higher book value, capacity, inclusive of MSCI and many more cannot be deserve lower P/E right?

Careplus been the first released it's quarter ending September results. Guess what is the market expectations on Supermax Q1 based on current share price?

Careplus trailing P/E = 25.22
P/E = Market Cap x NP
25.22 = RM25,220Mil x NP
NP=RM25,220Mil / 25.22 = RM1000Mil
Market expectations of FY21Q1
= RM1000Mil - T3Q Earnings
= RM1Bil - (399,618+71,056+30,165)
= RM499,162,000

Trailing P/E 22 in less than a week time, trading at 12% discount from historical P/E of 25.

Bought some today for short term plays.

If I was correct, both manufacturing and trading segment will benefit from current high production of rubber gloves. Manufacturing will benefit from latex and nitrile processing and compounding as mentioned above. Trading will benefit from distributing NBR, PVC, latex related chemicals and etc.

Transform Master Sdn Bhd, which is engaged in latex and nitrile processing and compounding, completed its capacity expansion by one-third from 1,500 tonnes a month to 2,000 tonnes in June 2020. "At present, it operates at about 75% capacity. Luxchem guided for higher orders to come in 2HFY20 or early FY21 in tandem with the commissioning of new capacity of several glove players.

Should be able to deliver higher profits given additional capacity came in for Q3 and expected higher utilisation rate.

PVC resin price surged up 193% from June, I hope we can see a surprise earnings from trading segment.

Should be able to benefit from strengthen of MYR for quarter ending Sept.

P/E (TTM):-
Supermax 55.18
FBM KLCI 22.67
Health Care 75.54

- Fair P/E growing stock at 37.45 (100/2.67)
Current risk free rate of M'sia=2.67
http://www.market-risk-premia.com/my.html

-Estimated FY21Q1 PAT at c. RM845Mil, EPS=0.495, T4Q P/E=21.41

RM10.60 trading at trailing P/E 21.41 in a week time, way below 22.67 < 37.45 < 69.62

will consider if below 50c, trailing P/E 35.47 too high to enter.

PVC resin asp raised so much, additional cost to to pvc compound? GG

@teamrocket, can you bring down adventa? I want buy at 2.85

Sep 29, 2020 3:37 PM | Report Abuse

03-Jan-2019 BONUS_ISSUE 1 : 1
06-Dec-2019 DIVIDEND_SHARE 1 : 65
04-Sep-2020 BONUS_ISSUE 1 : 1
===============================
Dec 2020 DIVIDEND_SHARE 1 : 45
Mac 2021 BONUS_ISSUE 1 : 1
Dec 2021 DIVIDEND_SHARE 1 : 25

Q3 EPS = 124,670/809,000 = 0.154/ 15.4c

Risk free rate Sep'19 = 3.35
Fair P/E in equity market = 100/3.35 = 29.85
Historical P/E for Bursa = 25

Risk free rate Sep'20 = 2.78
Fair P/E in equity market = 100/3.35 = 35.97
Fair P/E for Bursa = 3.35/2.78 * 25 = 30.13 #

Bought some today.

Traded value MTD ~RM49Bil, estimated c. RM76Bil for Oct, much higher than any months of past year average, expected Q4 still earning above average.

Projection FY20Q3 NP = 124,670
T4Q EPS = 0.397, Trailing P/E 22.3 in 2 weeks time (below historical P/E 25) and provided FY20Q4 > FY19Q4.

Lol... mother share price 4.6 you still in the money lah dude. (4.6-4.5)/5=0.02 but deduct fees I think left none?

Just stay tune, power of OBM+Streamlined SC+ODN yet to release.

Mercator medical released estimation of Q3 net profit approx. PLN 356.2 million, a 69.2% q-o-q increase

@Investor_2020, a roughly 13% up after the accumulation not a surge? You expected 100%?

Almost 30% of today volume has been accumulated at RM10.50-RM10.52.

Remind me the week before MSCI inclusion, funds non-stop collecting at RM20.50 and it surge up after done accumulation.

No pressure to hold at this level, trailing P/E will be adjusted to 18-22x in coming weeks once result released.

I believe many still stay sideway waiting the result to prove it's value. Once result released, it will reflected on share price.

I aware that they non 100% owned subsidiary/ associate are mostly doing very well in marketing and distributing like Canada and Brazil unit. They distribute quite full range of PPE beside OBM gloves like face mask, isolation gown, sanitizer, non-woven products and etc.

Actually the Canada subsidiary already started selling mask lol

@chief upgrade to super_bie? lol

@fts, most probably the forced labor issue.