The Group is planning to install an additional 8 production lines in financial year ended 2018 to bring the total production lines to 48. This will boost productivity by at least 20%.
Continuous research and development projects will be carried on to promote better quality speciality gloves. With encouraging response from customers for speciality gloves, the Group will maintain its focus on these gloves.
The Group foresees that current market conditions will remain robust and challenging. However, the Group remains confident that through cost reduction and improvement in efficiency will enable the Group to be more competitive in the quarters ahead.
Following the installation of additional 8 production lines, the Group’s productivity increased by 20% as compared to previous year. To be cost effective, the management team aggressively conducted projects to improve on production processes and yield. Through energy efficiency projects, the Group achieved a great saving in consumption of natural gas and water by 17% and 20% respectively. The saving in natural gas mitigated the impact of increase in natural gas rate of 26%, hence, further strengthened the Group’s competitive position.
The sales revenue increased by 14% mainly due to increase in demand of specialty gloves. The Group has successfully built up reputation on quality specialty gloves that suit for various applications at a reasonable price. This was also contributed by management team that actively involved in sourcing supply chain partners that offered value added products and services.
The Group’s performance was affected by fire outbreak that occurred in March 2016, which led to a loss of RM 0.6 million. The fire outbreak slowed down the gloves manufacturing operations in both 1st and 2nd quarters. The Group is able to maintain a gross profit margin and net profit margin of 15% and 10% respectively.
not a bad result eventhough I'm expecting more than RM10 million net profit. The current EPS is 4.62cent, which should be higher if not for the losses due to fire at their factory in Q1 FY16.
PE is 15.5%, which is on the low side considering that they achieved same margin with Topglove & Kossan. Here is the breakdown of glove manufacturers PER and their margin percentage.
If it is accorded a PER of 20x (some discount as compared to Topglove and Kossan due to smaller size], the price shall be RM0.92, which is 20 cent upside from the current share price.
The management is very committed to enhance productivity and cost saving, which I think they will overtake bigger glove manufacturers by delivering on efficiency and productivity.
If look at the result and management, this is a good company. in the past, Top Glove, Kossan n Hartalega took about 10 years to give investors 10 fold return.
That means if someone invested 1mil, 10 years later if they sold their share, they will get 10mil. And take this 10mil put in 3% FD, per year interest is 300k, per month is 25k.
Not many jobs offer 25k salary per month. Good luck.
apa x apa lah = apa lah ... stock can caculate like this ah ???? apa logic. so easy , i teach you ... go to maybank/public bank/cimb bank/apa bank.... loan 100m and hantam. after 3 years come here and share your achievement.
0.91 time is when investors convert their warrants to share and they need some fund to fullfill this requirement. So someone just goreng the share to get extra fund from the market for them to utilised it. This is how share market work.
When 2 big investors came in 2014 whwn the company still in PN17, the share price just around 20sen.
Cheang who was formerlly onwer of Seal Polymer Bhd (Sold to Supermax at RM1.40/share), together with Lau family dumped in RM22mil each into this company. 22mil for Cheang is huge amount and no businessman will dump so huge money into a company without making sure the company is making money....
If you only have 1mil and you invest 600k into 1 company and you run the company, will you let this company drain away your investment??
touching MA200.... Danger zone. Been selling for days.... Guess the wash out cycle is almost completed... Can average down as current price is the best entry.
Would like to share some simple calculation as below:
[1] Top Glove ( based on its FY AR from 2001 to 2015) a) Total invested for Prop, Equp & Machine = RM1,713,333,000 b) Total new lines increased = 430 lines c) Total new Capacity increased = 38.8bil pcs.
Average per line investment = RM3.984mil. Average per bil output investment = RM44.158mil.
[2] Kossan (based on its FY AR from 2005 to 2012) Note: deduct 10% out from the total investment as they have other rubber products. Average per line investment = RM4.258mil.
[3] COMFORT (Based on 2016 & 2017 FY AR) a) Total invested = RM79,736,000 b) Total lines up = 21 lines (based on newspaper interview) c) Total cap up = 1.9bil pcs (based on newspaper article)
Average per line investment = RM3.896 ( very close to the Top Glove figure) Average per 1bil output investment = RM41.9mil (very close to Top glove figure)
So for Comfort to add 8 more lines in FY2018, total investment will be RM31.2mil. I think the new cash that going to generate in FY2018 is sufficient to support this expansion. 8 lines estimate can generate additional 0.7bil glove capacity per annum.
One of my friend is passive investor and he bought Top Glove in 2001 but I don't know how much he was investing and now he said Top Glove Dividen is crazy.
For calculation purpose, I assume he bought 5 shares at RM2.00 each and total =RM10.00
BI=Bonus Issue
2002 BI=5 get 2. Now own 7 shares 2003 BI=5 get 2. Now own 9.8 shares 2007 BI=5 get 2. Now own 13.72 shares 2010 BI=1 get 1. Now own 27.44 shares 2016 BI=1 get 1. Now own 54.88. shares
2016 dividen/share is 14.5sen. He got 54.88 share and total dividen received is RM7.96.
He invested RM10 (in 2001) and now dividen return is RM7.96. = 79% per year. For those who invested RM100k back then, now Top Glove is paying them RM79k in 2016.
Smartinvestor1, what you said possible right. those big fund is pushing down the price to force retail players sell the share to avoid them make money when they push out the price again.
Just look at TopGlove, EPF is selling in the past few weeks to apply this strategy. Everytime TopGlove price drop to below RM5, you can see EPF is selling. Then they buy back again push the price up to above RM5.
Deep pocketed shark can press the share price by putting blockage. Haha
But the dynamic will change when its market capitalization breach RM 1 billion in 2-3 years time. During that time, the share base has expanded, which allow funds to take part in the shareholdings. Currently the shareholders are mainly individuals, based on annual report.
Comfort will add another 8 production lines this year in addition of 24 that they currently have. Based on annual report, they have another 4 hectares of adjacent land, which provide enough space for expansion. Their current factory is only taking up a portion of 2.45 hectares.
The current shareholder and management has done a good job of turning around the company and now preparing for growth. Glove manufacturing is a volume game. If they do not expand, they would be stagnant like Rubberex. But if they expand too fast, pile of borrowings would burden them, just like Careplus. I expect them to offer right issue with warrant, for expansion, which I am not hesitate to take up.
around 200million gloves capacity currently, how much do comfort to expand in order to breach rm 1billion market cap? compare to its peers, you will have the answer.
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!
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....
A Choo Pin
302 posts
Posted by A Choo Pin > 2017-03-29 11:29 | Report Abuse
good..buy buy buy