One thing I discover, most IB will give higher PE for Harta (40-45) than TG (35-40) as Harta is mostly automated and relying less on human labor (that's explain they don't have labor abuse issues !) and they have lower costing !

My own findings... :-
If Harta can really achieve EPS of RM0.83, PE of 40 = RM33.20, PE of 45 =RM37.35 !!

at current price of RM20 +, it has an upside potential of 80% at least !!!

As my earlier KYY's method of computing laggard, also it is Harta the most undervalue !!

Year to date upside of top 4 gloves :-
"Top glove :- up 456%
Harta :- up 267%
Kossan :- up 330%
Superman :- up 1,244%"

whereas for other small 4 or cheat 4 glove counters, most already shooting up to ridiculous high risk of 1000 - 2000% YTD (many newbees will be trapped and slaughtered by syndicates for sure !!)

I just browse thru two bloggers' write up of estimation of Harta expected EPS for 2021 :- bewteen 0.83 to 0.92 per share and both bloggers also using the same methodology to compute TG's EPS.


"A possible full year EPS of RM0.92 coupled with :

PE25 a possible share price of RM23.00
PE30 a possible share price of RM27.60
PE35 a possible share price of RM32.20

Despite this it doesn’t means that we’re not interested in other glove counters, it is however we had manage to receive more information on the above 2 companies compared to others as such we are more keen in going with what we CONFIRMED than speculations as we can see from other smaller players which reported a somewhat under expected results.

We’re quite sure the ASP of the above 2 companies is now already at least 100% or more since April 2020, and are still in the rise especially since their orders have been confirmed till year 2021.

Vaccine is still the major concern for the gloves industry as it may spell an end to the COVID-19 pandemic however medical experts have already informed that the earliest possibility of vaccine will be by next year.

Given this I strongly believe the trend of glove movement is still intact given the recent corrections in the chart and especially when all big 4 gloves companies have now entered into their newest high prices as per our prediction forming a new higher high for the uptrend patterns. "




"Hartalega's FY21 full year earnings is expected to leapfrog to RM2.8bil or EPS of RM0.83/share.

Superior margin ahead of its peers

TopGlove's profit is expected to jump by 5% for every 1% hike in ASP. Hartalega's profit is expected to jump 11% for every 1% hike in ASP. This is due to extreme efficiencies at NGC plant compared to its peers. Hartalega's plant are almost 100% automated.

ASP hike of 35% - 40% for June

Net profit to jump 350% - 400% from June and onwards. Assuming a 35% hike in ASP, Harta's net profit is expected to jump by 385%. Net profit for next quarter is expected to be between RM450mil - RM600mil.

Largest base in US

Harta's base in US is 55%. Compared to its peers, its the largest.

Antimicrobial glove catalyst

Game changer for Harta. No other big 4 glove companies is able to produce antimicrobial glove at a mass scale. This gloves has already been sold in Europe. Once FDA is obtain by year end, Harta is expected to command another premium to its share price.

Director acquisition of shares

Compared to its peers, only Harta's directors/founders have been acquiring shares at high prices. This is a strong sign that the management has absolute confidence in the company.

Valuation

Harta is undervalued compared to its peers at current valuation of 15x FY21 PE. Ascribe a 30x FY21 PE to arrive at RM24.80.

We believe Harta fully deserves to be the largest market cap company in Malaysia "

I remember reading some forumers said here before Harta forum full of intelligent analysis and comments and TG s forum full of idiots, morons , psychopaths, punters , retards , etc ....

I remember some forumers said here before Harta forum full of intelligent analysis and comments and TG s forum full of idiots, morons , psychopaths, punters , etc .... lol

“The bar on Top Glove's units did not dampen investor appetite in the company, whose share price rose to historical highs in the week after the Customs' detention. Top Glove's shares have climbed 456% this year, driven by demand associated with the COVID-19 pandemic.

Share prices of other major glove producers, including Hartalega Holdings, Kossan Rubber Industries and Supermax Corporation have soared 267%, 330% and 1,244% respectively year-to-date.”

Just read an interesting paragraph above , and based on KYY’s computation (although some forumers criticize it) as which top 4 globe stocks are lagging behind the recent uptrend :-

Top glove :- up 456%
Harta :- up 267%
Kossan :- up 330%
Superman :- up 1,244%

So ... fellow smart investors , who is the most undervalue ? Lol

I think should be another way round ! more competitors will lose out to Harta in terms of innovation , quality & reputation !
TG is the biggest rival to be lost out to Harta for sure !
Not only in US but in most western countries!

They exploited human rights, abused labors, then they have to bear the consequences !!

There are other glove companies or even other business wouldn't have done that ... Even if you can make tonnes of money from this company, those money are "black heart money " !

If you want to make money with conscience and principle, can always swap to other glove companies !!

Harta 's biggest rival is TG, I sold off all shares in TG and swap to Harta when I keep reading bad news about TG in labor exploitation ... and the issues won't be going away and might spread to other western countries which will treat this issue seriously !!

TG's above prolonging issues might eventually harm their profit margin (if they can't sell at premium in western countries then have to sell cheap to other countries + extra cost to deal with customs or lose customers in western countries !) and could in turn benefit and boost Harta's revenue & profit margin (western countries will rather pay high spot price to harta to get replacement ) !!

Those issue simply reflect badly on TG s management, comparing to Harta's efficient management, I think it is just a matter of time, Harta will overtake TG as the big tai koh in glove industry in the long run !!

Top Glove got so many problems & issues and reputation affected !
I avoid it and taruh into well managed Harta !!

analysis from one blogger (derive from recently earning performance of TG) :-

A possible full year EPS of RM0.92 coupled with :

PE25 a possible share price of RM23.00
PE30 a possible share price of RM27.60
PE35 a possible share price of RM32.20

** most IB give a high PE45 for Harta due to their cost efficiency !
PE 45 ? ....> 41.40 !!

@Lanesra, only smart and value investors know how to value Hartalega !!

normally price dropping a little bit, big bosses will support !
Hope that next week qr announced with excellent profit !!

Normally 4pm-4.30 pm, stock broking margin call ba ??

KYY cries wolf so many times, public investors don't trust his recommendations any more ! lol

GE or no GE, the whole world are still chasing for glove !

Harta's PE is always ahead of Top Glove (45 vs 40) because Harta is the most efficient run glove company in the world ! (now i just compare the top 2 and forget about the small brothers) , their management is also the best amongst the rest !

Top Glove has been burdened with labor exploitation issues and i don't think it will go away any sooner, first US, next NZ, the what countries again ??? western countries do not view this favorably ! I fear that will be more problems coming out one by one !! maybe top glove is too huge the size and the management can't control the problems effectively !

sooner or later, those issues problems or factors will reflect on the share price !
Top glove 's loss could be Harta's gain going forward !

Booming business sector, with the best efficient management ! That's how i choose !

Rm5.00 will be reached soon !!

Maybe nobody wants to sell to Datuk Ong at price of 1.80, so he busy sapu-ing from Bursa open market !!! lol

Good account analysis (repost) :-

< Personal Opinion >

Let me just reason it out. A loss of RM0.260mil is mainly due to a decrease in revenue due to a shorter business operation period and a written-off goodwill. From the previous QR, goodwill recorded in the Balance Sheet is RM1.059mil while the current QR, it is RM0.365mil, meaning to say, RM0.694mil got written-off. (If you happened to search for the usual goodwill impairment from older QR, you can see how the impairment is done. Well, I got no idea also how this goodwill is generated at first, so I don't want to comment much on impairing/write off, let's just take it as RM0.694mil got written off.)

So I can roughly add the amount back to get my operating profit when there's no write off for goodwill.
RM0.210mil + RM0.694mil = RM0.904mil from revenue of RM8.476mil (margin is 10.67%)
Compare with last year, RM1.328mil operating profit from revenue of RM9.383mil (margin is 14.15%)
Clearly margin has dropped in the current quarter ended May 2020 as compared to the quarter ended May 2019.
Anyway if you look at page 4 of the QR, table B1: Review of Performance, the company failed to realize they did a mistake in the representation of data. The second and third columns should refer to 3 months instead of 12 months. This issue happened a few times in the previous QR release also if anyone happened to realize.

If we compare the full financial year 2019 (margin: 7.1%) and 2020 (margin: 11.9%), the lower margin in 2019 is mainly due to higher employment cost and an increase in operating costs (LPG and raw material price). But does it justified to have share price around RM0.20 last year but RM0.645 now with this result? (Maybe on a good prospect under the current pandemic, but I don't know and I got no comment.)

Sum it up :- right booming business sector but run by lousy management ! The old sloppy CEO shall resign and elect a young vibrant aggressive one !!

F * C K !!
I remember few months ago I read sth from uncle Phillip that this ice cream is run by rich 2nd generation , they don’t bother to expand business or get more sales , just relax and earn stable income , petit dividends will suffice the major shareholders !
That’s why you can’t see f*cking growth ! The management also lazy to capitalize on this glove boom time to expand ! No wonder been keeping quiet and sleeping in the office ! F them !!

I have a feeling this counter will overtake comfort once their QR up to June be announced next month !
Remember , they are still the cheapest glove maker in terms of market cap in bursa !!

Now Spain top the list in Europe for infected covid 19 cases ! They will rush to buy gloves at ANY costs !! Rubberex happened to be there to sell them !!
Fellow investors pls take note !!

Just read the news Spain is experiencing swelling 2nd wave of covid 19, rubberex has a trading office in Spain (contributing around 20% of their revenue ) , would their Spain trading office sell gloves with higher margin or ASP ? ( just like Supermax) ??

I can only confirm the Q result must be out by 30-7-20 !

Careplus past results not that solid, and can run into huge losses but rubberex are well managed with almost no loss for past 10 years !! also no or minimal financial charges due to net cash position

For careplus, actual EPS (minus "one off item") is 4 cents only (up to June , 20) , Rubberex up to March , 20 already can deliver 3.67 cts, so up to June,20, should be no problem to deliver EPS 6 cents !!
My observation !

Rubberex's EPS up to June, 20 shall be = 6 cent (easily, taking into account April-June crazy ASP) !
6 x 4 = 24 cent annualized and forgot about the increase in ASP from July - Dec !
PE = 20, value = 20 x 24 = 4.80
PE = 30, value = 30 x 24 = 7.20

I only use PE 20-30, conservative figure again to compute the above conservative value !!
(top 4 all use up to PE 40 to compute !!)

Up to March, 20, Rubberex 's EPS = 3.67, share price of R is 3.90
Up to April, 20, Comfort's EPS = 2.8, share price of C is 4.70

Which is more under value ?? YOU decide !!!

no insiders selling even at 60-65 cent is good news !!
They know their products are selling like hot cakes or hot ice-cream !! LOL

Actually, my research shows that rubberex's balance sheet is more solid and stable amongst all small cap glove stocks !! steady profit earnings, dividends, net cash 30 mils (can expand capacity anytime), most of their properties are valued at 1990s price !! (very under value in terms of NTA )

Just that they are a old company with most directors, managers over 60-70 yrs old, just do thing slowly steadily and do not keen on expanding like Top 4. that's why they sold all their shares to Datuk Ong & partners for retirement recently !!

Now Datuk Ong & partners aged 42 ++ , they will be keen to expand and grow the company aggressively !! and DAtuk Ong is also major shareholder in a listed chemical company , hope he an use his knowledge in chemistry to invent a break through technology gloves going forward , even can rival Harta (famous in innovate new products for glove ) , just my 2 cents !

will revisit 0.70 ++ soon !!

This is the cheapest glove counter you can still invest in if you have missed the boat !!

This rubberex is the smallest pure glove maker in terms of market cap (1 bil) , even carplus rise up to 1.5 bil for the past few days !
It will catch up with all the other tai Kohs , sai Kohs soon .... !!

If you are a smart glove company investors, ignore those vaccine news but take caution on news of any development of giant glove factories in China !!

cavid or no covid , vaccine or no vaccine, the demand for gloves can only UP UP UP !!!!!

The only fears for Malaysia glove makers are ... whether world factory China can mass produce gloves in this 1-2 years time and compete with them !!

when the vaccine is in mass application all over the world, the demand for glove will even go higher as the world need even more gloves to deliver vaccine to even more human !!

Use your brain to think logically, nowadays gloves are used for medical front liners to handle covid-19 patients only, once vaccine in mass application, many many many x100000000000000000000000000 more gloves will be used for patients and non-patients (like you and me !!)

hopefully careplus 's share price rise could also influence all other small cap glove counters to go up together !!
Careplus 's QR up to June = 20 mils,
Rubberex 's QR up to Mac (before crazy glove -ASP) = already 10 mils, so up to June QR = easily 30 mils !!
I think Dato Ong knows about that, so he is trying to press down the price to collect at cheap before they announce latest QR !!

Aramco, this is rubberex forum, you have posted wrongly !!

DLLM99 ... simple logic, if Dato Ong is desperate to buy more rubberex shares, then most minority shareholders can gang up and hold UP the price and sell to him at RM4.50 then ! hehehe

KUALA LUMPUR (June 22): Chemical firm Hextar Global Bhd's executive director Datuk Ong Choo Meng and his 90%-held Hextar Rubber Sdn Bhd have acquired an additional 20.63% stake in Rubberex, raising their collective interest to 50.18% – above the 33% threshold that triggers the mandatory general offer for the remainder shares they do not own in the company.

The stake, comprising 57.25 million shares, was bought at RM1.80 cash per share or RM103.05 million in total from Seng Sheng Enterprise Sdn Bhd, Datuk Seri Chiau Beng Teik and Peh Lian Hwa, via direct business transactions.

Notably, the purchase price is at a significant 38.4% discount from Rubberex's closing price of RM2.92 today. Year to date, Rubberex's share price has grown about six times from when it was trading at 54 sen apiece on Dec 31, 2019.

Post-acquisition, Ong and Hextar Rubber control 139.22 million shares in Rubberex, up from 81.97 million shares or 29.55% previously, according to the notice of unconditional MGO sent by the duo's representative, M&A Securities Sdn Bhd, and filed to Bursa Malaysia this evening.


As such, the duo or joint offerors are obliged to extend a mandatory takeover offer to acquire all the remaining 138.21 million Rubberex shares which are not already owned by them at the same RM1.80 per share, cash.

The offer is not conditional upon any minimum level of acceptances as they already hold more than 50% of the voting shares in Rubberex.

The offerors, however, intend to maintain the listing status of Rubberex on the Main Market of Bursa Malaysia.

Note that yesterday he also made announcement to deal with rubberex share ...
Don't know buy more or sell ??
that is the interesting move !!

Since he already made "artificial" move for Mandatory general offer, very likely he will buy more in the market !! Just my 2 cent

He over bought the rubberex share up to 50% more and trigger the mandatory take over rule, by bursa's SOP, he needs to make mandatory offer to all the minority, and of course if he offer a price, he needs to have the actual funds to buy all up !
I think he just "saja" offer according to procedure , who is so stupid to sell to him at that price ?
End of the day the MO will fail, and the share price will continue to go up .... ! for sure !

all small cap glove or glove related counters will go LIMIT UP soon !!!!

COMING !!!!!!!!!!!!!!!!

Chun Chun Call Calvin Tan goes to promote HLT (loss making company) nowadays !! :(

After finished frying glove big 4 , small 4, cheat 4 etc ....
All hot money is coming to baby glove play Ice cream ... FOR SURE !!!

Reproduced the HL Research for your reading !!
Fund manager is coming to fry liao !! !!

HL Research

Author: HL Research | Latest post: Mon, 20 Jul 2020, 8:44 AM

Investment research on growth stocks.

Disclaimer:

Please note that the views, thoughts, and opinions expressed belong solely to the author, and not necessarily to the author's employer, organization, committee or other group or individual. None of the posts written on this blog constitute a buy or sell call.

Blog Headlines (by Date) Blog Index
ESCERAM: Beneficiary of the glove boom
Author: HL Research | Publish date: Mon, 20 Jul 2020, 8:44 AM

After a few years of poor returns for the KLCI, Malaysian investors are now seeing an unprecedented once-in-a-lifetime opportunity with the glove boom. Our investors at a glance:

Experienced retail investors would have already taken advantage to make back their 2018-2019 losses and shift their funds away from growth-stagnant "value" stocks.
Day trader uncles enjoying the volatility - 10%-20% swings almost on a weekly basis.
Fund managers and investment banks finally buying in into glove companies despite lofty valuations, entering late and influenced by FOMO.
Fish sellers, chicken rice sellers, college students, etc. are opening brokerage accounts as we speak to buy in.
There is a wise saying by a guy named David Tong / WealthArchitectToU, "Don't chase high ah." I am inclined to agree.

Nevertheless there looks to be a major opportunity in ES Ceramics Technology (KLSE: ESCERAM (0100) ), based on the fact that it's current price level is undemanding relative to the glove boom beneficiaries.

It follows an almost similar price trend to the big glove players although not a glove manufacturer itself.

And most importantly, SHOWS CONSECUTIVE PROFIT GROWTH and FUTURE GROWTH POTENTIAL.

(These are two key factors in an upward price trend, especially in the KLCI).


Some background:
You can read up all about their business on their corporate website and on i3investor. To summarize, their main business is in manufacturing glove formers for the glove industry.

https://www.esceramics.com.my/

When do glove companies need glove formers? Well, when they embark on an expansion of course.

Valuation
I would not get too caught up in the numbers, although it is pertinent to verify its fundamentals.

They have no debt
Relatively cash rich at ~RM20mil
PE of 30 (very good for a company primed for growth)
Profit margin between 7%-11%
Right, let's move on to the growth story.

A brief history of H1N1:
During the H1N1 Swine flu pandemic, ESCERAM experienced 4 consecutive quarters of stable profit growth from Apr 2009 - Apr 2010. This period of revenue and profit growth for the company correlated with that of TOP GLOVE and SUPERMAX.

ESCERAM:

TOPGLOVE:

SUPERMAX:

The correlation above is very promising. We are talking about a once-in-a-lifetime opportunity not only for glove makers, but also for those who have a stake in the game like ESCERAM.

Where is the growth?
We know that all the major glove companies in Malaysia, Top Glove, Supermax and Comfort Gloves, are embarking on production lines expansion in order to meet the worldwide demand. ESCERAM is perfectly positioned to take advantage of this opportunity.

Nevertheless what really interests me is its business in Thailand, where it comprises 60% of the groups revenue, and had achieved 48% growth in FY2019. While Malaysians are gloating "Malaysia Boleh" because of their supposed moat in the glove industry, in reality Thailand also is a major producer and is the world's largest rubber producer, hence they enjoy the low manufacturing costs as well.

Below is an extract from ESCERAM's 2019 annual report:

The Thai business has essentially fueled 4 quarters of consecutive revenue and profit growth. Malaysia biz is good, but the Thai biz has been a game changer.

I struggled to find out who are ESCERAM's major customers / paymasters in Thailand. There are some rumours that one of them might be Sri Trang.

If you don't know who Sri Trang is, they are Thailand's largest glove manufacturer:
https://www.theedgemarkets.com/article/sri-trang-gloves-surges-first-thai-listing-outbreak

Despite the unknowns, what we do know is that ESCERAM’s Thai factory is located in Sadao City in the southern Songkhla province, which coincidentally is where the big three of Thailand Gloves are located (Sri Trang, Mercator Medical Thailand and Hycare International). All of these companies factories are within a 20km radius.

Verdict:
At 54 sen, it still has plenty of legs to run considering the exponential growth it is about to undergo. The industry is going through an unprecedented phase; how well ESCERAM does entirely depends on whether their management can make the right moves in an almost perfect setting.

FYI: 4Q2020 report is projected to be released in the last week of July.

https://klse.i3investor.com/blogs/HLresearchblog/2020-07-20-story-h1510631202-ESCERAM_Beneficiary_of_the_glove_boom.jsp

Hong Leong Research just made a write up on Ice Cream !!
YES !! Time to Top Up and Vroom Vroom Vroom >>>>>>>>>>>>>>>>

my previous research :-

"My future PE calculation :-
If a year annualized profit = 4 ct (realistic as per their best 4Q total in 2016), and net cash of 10ct per share (excluding from PER computation) ,
PE = 20 (conservative) , fair value = 80ct + 10ct = 0.90
PE = 30 , fair value = 1.20 + 10ct = 1.30
PE = 40, fair value = 1.60 + 10ct = 1.70

remember, this is a company with proven track records for accurate estimate, unlike those loss-making company you just can only fantasize their profit & PE !!

f they can deliver 5ct EPS, (also likely as higher demand than last time round) :-
PE = 20, fair value = 1.00 + 10ct = 1.10
PE = 30, value = 1.50 +10ct = 1.60
PE = 40, value = 2.00 + 10ct = 2.10

From the lowest of 0.90 to highest of 2.10 as valuation, divided by 2 => 1.50 as median fair value "