Expected the following announcement in Sept & Oct :
a, A 4Q pr0fit of appro RM190M from the sale of Diner Club . That will increased the NTA to 32cts.
b. Expect an announcement that Johan has started commercial production for Glove for 6 line by 31st Dec ...ceterus paribus..I expect the company to provide an update on the Glove production by then
The above are positive new for the company and it may impact the share price.
As patient investor, we will have to wait patiently for the 1st Q result ending 31st Dec , expected to be announce in Feb 2022, for further improvement of their profitability. It will no longer be in a lOss position like in prior year ...
For retailer for look forward to LU or active trading , this is the wrong forum for u....patience is virtue for those who invest invest in Johan, with a min 6 months time frame to see possible result.
the year end 31 July 2021 results, Note K9 , the date for deferred cash received (NOV 2021) but the results is up to end of July 2021 ,did not make sense and this section appeared in Jan 2021 but disappeared in April 2021.Gloves business fairly tales nowadays no more attraction. Moreover , the mass production not expected to be commenced so soon, maybe full production capacity may be by 2nd half of next year.
NTA 21.6c, consensus Target Price 29c, loss making businesses now sold off, production of the huge new Gloves facility already started with new lines being added in the next couple of months. I'm not in any hurry to sell. I will be patient and wait this out.
No statement from JHB but as production lines are brand new it may take a while to have process audits and samples tested along with applications for certification. In the interim production will no doubt be taken up by countries that do not required US Certifications. I expect certifications if not already issued will be issued very shortly as management is professional, the lines are modern and the property has been purpose built.
a counter to watch...about to spike soon....commercial production has started in end Nov & for 2Q ending Jan 2022 , expect a maiden profit from the glove production. Result expected to be announce Feb/March 2022. A conservative profit of RM5M for 3Q 2022 , which is easily achieved , will priced Johan at 20cts plus with a PE of 15... a good proxy for glove exposure....
Demand for gloves will exceed supply for at least until 2023 and Covid 19 Cases are surging throughout the world . US daily infection is at record high of 1.0million a day . Previously , it was only 500k plus.
ASP for glove though is declining but is still steady and above pre-pandemic period and with demand exceeding supply , Johan is expect to return reasonable profit based on their glove business. With such a Gem as a Proxy for Glove sector exposure , what are we waiting for...
Additionally , the NTA is appro 21.6cts and net Cash per shares is about 8cts....with low borrowing ...
A thought to share with fellow patient and mid term investors before it start to spike.... Holding period 3-6 months.....Cheers...
not bad for Johan today ...can close at 9.5cts will be good ...slowly2 catch the worm.... expect announcement from Johan on their Glove production and by then , it be action time... limit up kaki , go somewhere else....lol
Johan Holdings’ subsidiary Dynacare SB has rolled out its first commercial glove production of its first high capacity double-former dipping line at its plant in Perak on Nov 27. Johan Holdings said Dynacare had completed its acquisition of the 71,980 square metres of land in Lumut Port Industrial Park on Nov 26 this year. The land has been utilised as the company's glove manufacturing plant. "All approvals for the manufacturing and export of gloves have been obtained. Dynacare is expected to commission subsequent dipping lines in stages with a total of six dipping lines in commercial production by Feb 2022," it said. (Business Times)
Johan has targeted to commence the commercial production of a glove manufacturing plant in Perak by end-November 2021.
“To whom will Dynacare sell its gloves to? How does it compete with other glove producers amid the current lower average selling prices and influx of gloves supply in the market?” asked MSWG.
Johan will stage its 96th annual general meeting (AGM) virtually on Jan 20 (Thursday) at 11am.
The shareholder activism group is also curious as to how much Johan has invested in the glove business as preliminary reports stated that its manufacturing plant would cost RM624.1 mil which upon completion would house 42 production lines.
“Does Johan plan to tap into equity financing to fund the new business? To recap, Johan had completed a rights issue exercise in July 2021 and raised RM38.93 mil to fund the glove business,” asked MSWG.
“How long will it take for Dynacare to achieve breakeven from its investment?”
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