Posted by smyang11 > 2021-08-27 12:25 | Report Abuse

This counter - fair price is 0.2

Posted by 24HoursProducing > 2021-08-27 12:26 | Report Abuse

EV ard 0.58

Posted by 24HoursProducing > 2021-08-27 12:27 | Report Abuse

Value investors might throw

Posted by 24HoursProducing > 2021-08-27 12:27 | Report Abuse

TA still got hope

Posted by smyang11 > 2021-08-27 12:40 | Report Abuse

Got hope if you prepare to hold 10 years. As far as I can see, this counter is the worse glove counter ever.

Cheap but cannot go up, and go down easily

Posted by skcm2017 > 2021-08-27 12:58 | Report Abuse

hahaha....

Posted by ket4212 > 2021-08-27 17:22 | Report Abuse

qr bad

Posted by hoowk77 > 2021-08-27 17:30 | Report Abuse

64.7mil

Posted by hoowk77 > 2021-08-27 17:31 | Report Abuse

Mana mou cari

Posted by neutralist > 2021-08-27 17:35 | Report Abuse

John1234 as predicted. it is slightly above my predicted calculation. i expected 6-7 and they deliver just slightly more at around 8 cents per share. Management also guided that second half earning will be impacted by softening of ASP and operation disruption.

However they stated this year should perform better than FY2020. we already surpassed the whole 2020 within 2 quarter so the statement is just saying they won’t be in loss position no matter what.

I would expect next 2 quarter to churn out another 6c and 4.5c in eps. good news is the cash is now 240m after completion of PP. and net asset per share is now 64 cents. and cash per share is abt 33 cents. at this price point it is still attractive to me. so my second add point will be near 64-70 cents should there be any dip.

Interested to hear your thought

Posted by John1234 > 2021-08-27 17:59 | Report Abuse

Neutralist, I had a pretty busy day today. I will come back to you later after dinner.

Posted by Albukhary > 2021-08-27 18:03 | Report Abuse

neutralist, just to correct your statement of "cash in now 240m after completion of PP".

FYI, PP was done in Aug'2021, while the QR is 30 June 2021.
So, the RM240mil cash reported in this QR haven't included the RM60mil PP.

So, as at 27th Aug 2021, Ruberrex should have at least RM300mil cash on hand (after included the PP).

Posted by Albukhary > 2021-08-27 18:07 | Report Abuse

Based on market cap of RM723mil, minus cash on hand RM300mil, the business is now value at RM423mil only.

Assume Ruberrex can make another 90mil in the next two quarter, total PAT for the year will be around RM240mil.

Posted by TheContrarian > 2021-08-27 18:10 | Report Abuse

Bought at 78.5 sen today.

Posted by smyang11 > 2021-08-27 18:48 | Report Abuse

Good or bad result?

Posted by neutralist > 2021-08-27 18:51 | Report Abuse

Albukhary

yes you are right. Sorry i input 300m in cash per share of 0.33 but forgot to ammend my figure. Thanks for pointing that out. Yes at this price i believe it is hard to go wrong. but it might not move until normalization of asp pricing is clearer.

i think somewhere up there got a person highlighting the enterprise value is now at 0.57. yes. but if you take last 4Q ebitda, now EV/EBiTDA ratio is as low as near to 1.5 which is amazing and good takeover target as well.

Either way my only concern is the quarter sales to europe consist of only ard 15% and europe margin is only around 4% now. malaysia market seems much better margin which i believe due to logistics cost etc all not impacting them.

Posted by ket4212 > 2021-08-27 18:52 | Report Abuse

have dividend？

Posted by smyang11 > 2021-08-27 19:11 | Report Abuse

No, would never have dividend

Posted by skcm2017 > 2021-08-27 19:27 | Report Abuse

Neutralist/Bulkhary - seems the analyst didn't so much different, queue for Monday..

Posted by Bullrunrun > 2021-08-27 19:55 | Report Abuse

Ruberex will increse its capacity 3x next year. Hold on to it TP: RM 2.00

Posted by AllanTingAS > 2021-08-27 21:19 | Report Abuse

Noting to talk about it on profit if no dividend was declare! Never appreciate small share holders.

Posted by John1234 > 2021-08-27 21:34 | Report Abuse

neutralist,

Both Albukhary and you have done a fine job in analysing and highlighting the salient points of the quarterly report. I do not have much to add, except to say:

1. Rubberex’s Managing Director, Mr. Khoo Chin Leng, reiterates that, “Despite
signs of glove prices gradually easing in recent weeks, demand for gloves, specifically disposable gloves, and other personal protective equipment perseveres in this on-going pandemic and notwithstanding higher rates of vaccination globally, shall remain persistent at the forefront of protection, safety and hygiene.”
Hopefully, market has more or less priced in already the ASP drop of the Rubberex gloves, given its current share price.

2. As at last quarter report, Rubberex had a NTA per share of 63 sen, backed by a strong cash position, this would provide a good cushion on the share price.

Frankly, my relative strength is not so much on analysing financial reports, but rather on interpreting/analysing the shares market trading dynamics, which I have learnt over the years.

Hope I can contribute in my small way.

Posted by smyang11 > 2021-08-27 21:41 | Report Abuse

Guys. Would you rate Ruberex or comfort better? In regards to attractiveness of share price?

Posted by John1234 > 2021-08-27 21:52 | Report Abuse

Yes, I do agree that dividend is welcome news for the investors. But we must not forget that share price will be adjusted too on the xd date. Eg Comfort share price dropped about 8 sen on the xd day recently, when the dividend payment was only 4 sen.

===========================================================================
Stock: [COMFORT]: COMFORT GLOVES BHD

Jul 8, 2021 10:41 AM

Dividend payment is like drawing cash out from the company's cash reserve. Share price has to be adjusted for this change.

In a bull mkt, adjustment will be less. But on a bad mkt day, adjustment will be more.

Posted by neutralist > 2021-08-27 22:42 | Report Abuse

John1234 thank you for your view. appreciate everyone’s input that all you had shared ! I hope everyone will make money here. Does not matter enter late, stuck last time, avg down or not. Hope it will one day in near future to break new high so all of us now can earn. On dividend, i think if the company can make good use of our fund to generate better profit, it is good. I think for most who stuck will be more disappointed because dividend is like cash reward for them to average further down. however over the long term, it should be good hold as long as they stay true to the expansion plan, and able to cope with the increased competition.

smyang11 just my personal opinion, both is good company. i personally likes comfort slightly more, because the director is a bit friendly with minority shareholder. remember when old director left the company, the did not transact it in open market, and share selling is done off market. i remember at rm2.4 the price transacted. another thing that i like about comfort is their product focus is diverse and their focus is into specialty gloves as well. that is a bit niche. in addition, they also exports to more country as well. expansion is also in place from 6.8b towards 14b. as for ruberex, i really dislike OCM. does not deny he is brilliant market maker but not towards minority shareholder. he used to be shareholder of comfort glove as well. however, if you see in totality, he owns hextar, he bought into complete logistic as largest shareholder. so he has ties over complete supply chain from the chemical component of rubber glove, to rubber glove manufacturing and to logistic arrangement and even warehousing. the whole chain is important for sustainability and cost management. over long term should he not cash out and stay in the grand plan, it should be good thing for ruberex. but this is theoretical assumptions of his plan and we can invest on hypothesis only. so that is my 2cents. hope it helps. but nevertheless, please stage your entry and be prepared to hold for long term (more than 1 year) else better not look into any glove counter in my opinion

Posted by skcm2017 > 2021-08-28 00:38 | Report Abuse

neutralist : well thought. I have both.

Posted by neutralist > 2021-08-28 00:40 | Report Abuse

skcm2017 nice! hope you huat all the way!!!

Posted by BrusaCasino > 2021-08-28 09:23 | Report Abuse

Comfort has the highest capacity among rubberex and careplus. Also they have the lowest PE currently. Rubberex and Careplus had private placement of 10% recently at a low price, which dosent seem good. My opinion is totally garbage for them to raise money via PP even when they have so much cash

________________

smyang11 Guys. Would you rate Ruberex or comfort better? In regards to attractiveness of share price?

Posted by yc333999 > 2021-08-28 09:32 | Report Abuse

烂berex,super烂，good profit but no dividen

Posted by Start_0f_the_bull > 2021-08-28 10:16 | Report Abuse

Carepls is even more laughable. It has so much cash in hand, giving out dividend but at the same time need private placement.
If it has so much cash in hand and can afford giving out dividend why still need private placement? Doesn't make sense.

Posted by jackfruit > 2021-08-28 10:38 | Report Abuse

Rubberex plant expansion for another 7.5 billion pcs of nitril glove that required 400million. One thing I don't understand why they don't borrow money from the bank when interest is so low. Smart management will borrow and at the same time paid dividend to shareholders. Rubberex cash flow is strong and stable. The way the price is falling like waiting for a third party to take over the company. Maybe Comfort or Careplus are eyeing at rubberex as both also cash rich.

Posted by John1234 > 2021-08-28 10:53 | Report Abuse

There was an obvious reason why Rubberex management needed to raise cash via pp to fund partially the planned capacity expansion.

RATIONALE OF THE PROPOSED PRIVATE PLACEMENT(extracted from the circular)
The Proposed Private Placement will enable Rubberex to raise the necessary funds to part finance the capital expenditure required and working capital of the Group as described in Section 3 of this announcement.
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3168364

The total net proceeds raised of RM66.1 million have been earmarked for further
expansion into nitrile disposable gloves production lines at a new manufacturing site in Lahat, Kinta District, Perak.

In view of this, I would choose to give the benefit of the doubt as to why its management is not giving any dividend this time around.

Posted by John1234 > 2021-08-28 11:01 | Report Abuse

Extracted from the circular:
"After due consideration of the various methods of fund raising, the Board opines that the Proposed Private Placement is the most appropriate avenue of fund raising as the Proposed Private Placement enables the Company to raise funds expeditiously without incurring interest costs as compared to conventional bank borrowings thereby minimising any potential cash
outflow in respect of interest servicing costs.
The Proposed Private Placement also provides the Company an expeditious way of raising funds from the capital market as opposed to other forms of fund raising. Upon completion of the Proposed Private Placement, the enlarged capital base is also expected to further strengthen the financial position of the Company."
========================================================================
jackfruit Rubberex plant expansion for another 7.5 billion pcs of nitril glove that required 400million. One thing I don't understand why they don't borrow money from the bank when interest is so low. Smart management will borrow and at the same time paid dividend to shareholders. Rubberex cash flow is strong and stable. The way the price is falling like waiting for a third party to take over the company. Maybe Comfort or Careplus are eyeing at rubberex as both also cash rich.

Posted by skcm2017 > 2021-08-28 11:18 | Report Abuse

"Smart management" will not borrow from the banks, it is the last resort you will do. Learn Business Fundamental 101.

Posted by smyang11 > 2021-08-28 11:34 | Report Abuse

All in All, wait 5 years for Ruberex to go up rm1

Posted by BrusaCasino > 2021-08-28 12:21 | Report Abuse

Rubberex has the worst management I ever seen in gloves stocks

Posted by BrusaCasino > 2021-08-28 12:23 | Report Abuse

If you think of it, company make so much money, but don't want to give dividend. Then also proceeds to use PP to raise money, literally using investor money to raise funds. Because now everyone get dilution of 10%. Who is the winner ? The management ofcorse. Pay them self a fee and get all the company money to use of potentially leasure things that can be unnecessary

Posted by BrusaCasino > 2021-08-28 12:24 | Report Abuse

I lost respect for them already after previous QR. Now u can see it can only get worst from here.

Posted by BrusaCasino > 2021-08-28 12:25 | Report Abuse

The question about why don't borrow money from the bank? That's a good question. Because if you borrow, need to pay back by working harder. Sounds easier to just use investors money for free.

Posted by gemfinder > 2021-08-28 12:31 | Report Abuse

Bad management guidance for future. Gg

Posted by Start_0f_the_bull > 2021-08-28 12:57 | Report Abuse

If cash in hand is not enough for expansion private placement is acceptable even it will further dilute the number of shares provided the placement price discount is not too much compared to the share market price.

Posted by smyang11 > 2021-08-28 13:15 | Report Abuse

Ruberex management doesn’t care about investors. They only care about themselves. That being said, share price is also like shit.

Posted by neutralist > 2021-08-28 13:45 | Report Abuse

It depends on how you see things. PP like careplus is a strategic thing. they are ace market participant with small investor pools. by doing PP and getting strategic holders to subscribe, you will also get a stable growth, stable presence and bigger investor pool of coverage.

In the case of Rubberex, my take is they are expanding 4 times their current capacity. that is quite a big expansion. And to be honest, unless ASP stabilize, they would not be able to predict how much cashflow is needed. so it is a move of being prudent with cash management. That might be the reason why they did not give out any dividend and go for PP instead of raising debt.

Imagine ASP really drops kaw kaw and you have to service your debt too in uncertain environment. It is just a move of being more prudent having a cash with letting go some of the stakes. 10% dilution is nothing vs the level of profit that is incoming with 4x capacity. acceptable level for me. Ruberex has been profitable even before covid, so i have some confident that they will manage their cost and capital properly.

And at this juncture there is no news on who subscribed meaning the it is not a single party because once you have more than 5% holdings, you will become substantial shareholder. So if multiple party are interested to inject money into the company, then they too see some prospect in it. There are 2 types of PP holders, 1 is short term goreng and dump into the market, 1 is a long term strategic holder willing to wait out till plan they are presented with to materialise. So far since listing of additional share, there aren’t any significant price pushing which in my opinion tells that PP holder is of later category.

I can only say my reason to enter now is that i weight the reward should be higher than the risk at current price and with the expansion, it is definately worth it. Pre covid, 1B capacity, their NP ranges from 10-15m. Imagine 10x capacity, at same level (exclude any cost saving from not having any debt + economies of scale) it should be 100-150m if we take it at face value. 100m a year means EPS of 10. At mean 5y PE of 15, it should have future value of rm1.50. This is being prudent in calculation. 100% reward in 2-3 years should be interesting enough for me as my required rate of return i am looking at is 20-30% per annum. And at this suppressed price, they might even be a good m&a target. So again, it is how you analyze, view and your determine the risk vs reward. in saying that i only buy anything below 80 cents because that is what company think as price with attractive upside when selling the PP to the private investor.

But should there be any hint that the expansion is not going to happen as planned, i would not hesitate to cut loss my position or cut win based on the timing of the news because my reward vs ratio is heavily dependent on successful implementation of expanded capacity.

Just my 2cents. But thanks and valid argument BrusaCasino. One thing i agree with you is the director is not really the type that looks out for minority shareholder. That i agree. Even with his other ownerships. But he is good at deal making i will give him that only. My view is only based on my risk profile, my timeframe of investment and required rate of return i am looking at. I am not promoting anything. please feel free to criticize the company if you don’t like them. i like to read opposing view as check and balance againts the idea i have.

Posted by skcm2017 > 2021-08-28 13:57 | Report Abuse

I will average down to 2.5 years...hahaha


smyang11

Stock: [RUBEREX]: RUBBEREX CORP (M) BHD
Aug 28, 2021 11:34 AM | Report Abuse
All in All, wait 5 years for Ruberex to go up rm1

Stock: [RUBEREX]: RUBBEREX CORP (M) BHD
Aug 27, 2021 12:40 PM | Report Abuse
Got hope if you prepare to hold 10 years. As far as I can see, this counter is the worse glove counter ever.
Cheap but cannot go up, and go down easily

Posted by John1234 > 2021-08-28 14:37 | Report Abuse

I think Comfort may suit you better. It gives out "dividends" and its share price is also at 52-week low.

But, do take note that major shareholder Lau likes to sell his own Comfort shares in the market. As far as I can recall, he had been actively selling a big chunk of his Comfort mother shares last year during the super bull run days of 2020/2021. Even now, he is still actively selling his zero-cost Comfort WB too. He will surely need more investors to support the share price.
===========================================================================
smyang11 Guys. Would you rate Ruberex or comfort better? In regards to attractiveness of share price?
27/08/2021 9:41 PM

Posted by smyang11 > 2021-08-28 14:44 | Report Abuse

Is normal for owners to share their price as they can all the time collect again while knowing how the business goes. But problem is really HC counters have been laggard for so long. Is like they never wake up. I don’t want to invest and then have to keep it for so long. Hahah. Right!

Posted by Sales > 2021-08-28 14:55 | Report Abuse

How come no dividend???

Posted by ket4212 > 2021-08-28 17:17 | Report Abuse

now hlt and ruberex buy which one better？

Posted by ket4212 > 2021-08-28 17:18 | Report Abuse

both also 79 and 78.5sen？

Posted by smyang11 > 2021-08-28 17:55 | Report Abuse

Ruberex as it is gloves and HLT is glove former.

If u wanna get HLT, esceramic is a more value