Mthly uptrend still intact. Fundamental and price is in divergent. Gonna issue 32 sen new share to Evermix boss and he will become new major shareholder. Now price is 50 % discount to 32 sen. How can price be lower than new major shareholder issue price by 50%? More likely is more than 50% of 32 sen instead. Fa and logic does not support current price. TA must follow sooner or later. New major shareholder = new play.
Net Profit 2Q23- RM7.68m excluded the gain on disposal of land (batch plant) which is RM4.909m, the profit generated from the normal course of business should be RM2.771m. Taken out the gain on disposal - Net profit 2Q23 VS 2Q22 : RM2.771m vs RM2.234m, +0.534m / 24%. Topline increases 17%. With the recovery of construction works, a better result is expected in the coming financial quarter. In future, the Glove section will be accounted for less than 10% of revenue.
As many investors are still classifying it as the glove related counter, when the overall glove counters won't move and it lost the momentum. If really zoom into the latest quarter result, you will find that the glove section is only accounted less than 10% of turnover. The counter is on the "right business" - pre-mix but the profit margin still not reflected as the peers in the building materials. Another counter worth to look into is Meta Bright which is also ventures into the pre-mix biz in Sabah by bought over Expogaya.
China's reputation in infrastructure is growing as roads, rail, ports, and even cities are contracted by countries around the world to China. China recently won the Hanoi to Ho Chi Minh City high speed rail which many assumed Japan would get. Indonesia's successful HSR from Jakarta to Bandung could get another contract from Bandung could get another contract from Bandung to Surabaya, again another project thought to be a Japanese win. Then there are the new cities by Egypt and Saudi Arabia being built by Chinese companies.
Today, TopGlove released its quarter result which showed narrow down the loss. The buying interest in the glove related was sparked. Esceram was not excepted. Even though the contribution of glove in the revenue was not exceeded 10% as whole.
I think, the main problem of Esceram is there is no a key shareholder in this company. Each of the top shareholder hold only little percentage of the company. For me, this type of small cap company, the founder / substantial shareholder should hold more than 30%, or the top 10 shareholder should hold more than 60%, then only they have chance to push the company share up.
Q324, The Group achieved a profit before taxation of approximately RM1.40 million for the current quarter. This represents a decrease of 75.54% from the profit before taxation of approximately RM5.73 million registered in the corresponding quarter of the preceding year.
The lower profit before taxation despite an increase in revenue as compared with the corresponding quarter of the preceding year were mainly due to the higher material costs and cost incurred in setting up additional production facilities for building material segment.
Manufacturing segment decline in profit was mainly caused by lower average selling price and sales volume and higher operating expenses.
Cash and cash equivalents increased to 83.7m from 48.4m.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
OneOracle
449 posts
Posted by OneOracle > 2023-12-19 08:27 | Report Abuse
The ONLY glove related counter that make a continuous accumulated profit of
105 million for 13 consecutive qtrs even after covid. Beating all glove counters.
still valuing at 150 million market caps now.
Crazy super undervalued.