It's good to have a own target price, manage your risk whenever a certain tp is hit. I strongly believe comfort can go further this month, but still need to monitor closely. Guess IBs have some action where this happens once ago when so many IBs pop out giving higher TP back in May.
Comfort Glove is playing catch up - Koon Yew Yin Author: Koon Yew Yin | Publish date: Tue, 14 Jul 2020, 2:17 PM
The following is part of RHB OSK buy recommendation for Comfort Glove with a new target price of Rm 4.80.
RHB OSK Upgrade to BUY from Neutral with new MYR4.80 TP from MYR3.18, and 41% expected total return. The glove shortage has worsened as COVID- 19 cases in the US surged 24% MTD. We raise our earnings estimates and TP on higher ASPs. Our TP is based on CY21F P/E of 25x, which is at a 30% discount against peer average. This reflects its smaller market cap/liquidity to peers. BUY for its FY21 (Jan) 128% earnings growth, supported by 10% ASP increase and 14% capacity expansion.
Capacity expansion. We expect Comfort Gloves to add six production lines in FY21. Upon completion, its production capacity will increase by 14% to 5.9bn pieces pa (ppa).
My calculation
After I studied the buy recommendation by RHB OSK, I calculated the market cap of Comfort to produce 1 glove in comparison with Supermax.
Current Comfort share price is Rm 3.87 and annual production 5.9 billion gloves.
Current Supermax share price is Rm 17.60 and annual production 25.7 billion gloves.
Comfort market cap 580 million total issued shares X Rm 3.87 = Rm 2.24 billion.
Supermax market cap 1360 million total issued shares X Rm 17.60 = Rm 23.94 billion.
Comfort market cap Rm 2.24 billion divided by 5.9 billion gloves = 38 sen per glove.
Supermax market cap Rm 23.94 billion divided by 25.7 billion gloves = 93 sen per glove.
Based on my above calculation, I agree with RHB OSK Comfort target price of Rm 4.80.
Dxbman have exit from Spermx this morning with huge 8 figure profit and switch to Carepls and Comfort for short term trade. These 2 will fly this afternoon and tmrw
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 908 views | 6 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
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....
super_newbie
1,261 posts
Posted by super_newbie > 2020-07-14 12:38 | Report Abuse
It's good to have a own target price, manage your risk whenever a certain tp is hit. I strongly believe comfort can go further this month, but still need to monitor closely. Guess IBs have some action where this happens once ago when so many IBs pop out giving higher TP back in May.