Kenanga's Analyst must be a Glove Hater, as its analysis are too bias.

Company like Harta & Kossan has already mentioned in the AGM or Analyst briefing that their plant utilisation has increased to 80%, and even Top Glove also re-commissioning few plants (previously was shut down) as existing plant are insufficient to meet the demand.
Why Kananga still using 45% plant utilization in their research report?

https://ak-industries.com/en/

Hi all Sifu-sifu here, anyone know why Ekovest's finance cost can be so high, RM112mil per quarter.
If annualised it, it will become RM450mil per annum.
If refer to the latest QR, they have around RM6bil borrowing (bank borrowing + Mid Term note).

RM450mil / RM6bill = 7.5%.

I think this is too high, as a listed company, they should have better bargaining power to secure low interest loan (i.e. can get financing from low interest country like Japan, China, Middle East, KWSP).

Market Cap RM45mil only.
Cabnet minimum should worth RM70-80mil
Share price should be RM0.40 - RM0.45

Market Cap RM45mil only.
Cabnet minimum should worth RM70-80mil
Share price should be RM0.40 - RM0.45

Nvidia hit USD1,200.
20,000 x USD1,200 x RM4.70 = RM113mil.
Its original cost of investment is only USD90, which equal to 20,000 x 90 x 4.70 = RM8.4mil.

If dispose now, there will be a gain of almost RM105mil.

DANCO next quarter result are expected to be very good.
I still holding tight my DANCO share... As I believe this share at least value 80sen.

In my own experience, if current price is RM1, NTA is RM1.50, and privatization offer price is RM1.30. High chances this privatisation will be failed, as minority will not accept the offer price.

The best scenario of privatisation will be :-

Current price - RM1.00
NTA - RM1.50
Intrinsic value of the company - RM2.50 (i.e. Company have land that reflected very low book value in account, but actual market value is few times of the book value.)
Offer price - RM1.80.

In this type of scenario, minority shareholders will be happy to accept the offer, because the offer price is exceed the NTA (book value). Major shareholder also happy, because their offer price of RM1.80 is far below the real intrinsic value of the company RM2.50. Moreover, the company has so many cash, all bank institution is happy to provide financial support to the major shareholder to privatise the company, coz once they privatise, they can anytime declare dividend or capital repayment to withdraw the money from company bank account.
The

Michael Kwok, your sell call is very cum.
Please let us know when can buyback TDM again.

Yup, although the result doesn't hit my expectation of RM12mil, but not bad it still have RM10.6mil. But one thing not good is there is no interim dividend announce.
Once again, the company is holding too much of cash, and it must find a way to generate more return with its cash.
Perhaps they can build another hotel, or acquire some new business, or get more client.
I mean Penang is booming, so many MNC setup factory there, and PPHB is doing packaging business, please try to secure some long term contract with those MNC.
(

If tomorrow Lagenda limit up, will EPICON reach All Time High

Andy Chua Seng Hooi is from Guocoland.
Anyone who work with Hong Leong Group or Guoco Group should known that whoever that can survive in Hong Leong Group / Guoco Group until management level must be a very tough and hardworking man.

Lets list down the worst scenario:-

1) Director being jailed due to bribe
2) Unsold land need to convert back to Malay Title
3) Land that has been sold need to compensate by other land (mean convert its other non-malay land to malay land)
4) Company lost the trust from Government, unable to get more new land approval in future.

Best scenario is:-

1) Nothing to do with the existing director and existing company, as this Bribe is many years ago and it has nothing to do with current management and current company.

@ocbc, YTL takeover Ranhill because of the water supply is a important factor for its Data Centre.
YTL will not takeover YLI or ENGTEX or any Pipe Manufacturer, because Pipe is not a important factor, Pipe can be sourced or produce by any pipe manufacturer.

Also, please take note that YLI cash left RM46m only (as per 31 Dec 2023), because a big portion of the land disposal proceed has been utilised to reduce its loan.

Therefore, out of the NTA of RM1.37, only around RM0.32 is cash, balance RM1.02 is is land, property, machinery, inventory & trade receivable.

No body will takeover YLI, because it has nothing special.
The boss will also not sell YLI, because it still has the RM46mil (unless they have capital repayment first, take out the RM46mil cash first, then only boss will willing to sell).
So, the only corporate exercise that can be happen is Boss privatise it.
Boss just need to fork out some money to buy back the share from public, then boss can 100% owned the RM46mil cash in bank.

Wow... Supermax turnaround from loss to profit, haven't included the additional Forex Gain of RM47mil.
My sifu is correct, this bomb is really very fantastic.

My Sifu "cold eye" told me, if you can wait and spent 5 years for Durian Plantation, Palm Oil Plantation, why can't you wait for the stock for 2-3 years? Why you so urgently to see the share price go up immediately after 1 week or 1 month?
You spend RM500k to plant durian, from cleaning the soil, plant the baby plant, fertilizer, take care, everymonth spend RM10-20k to take care, and you can wait 5 years to see it start generate return. But buy stock, you invest Rm100k, and you expect it become RM120k next month.

Postpone is expected la, be patient wait for few more months bah.

Dato Yap have 270mil share.
Assume everyday throw 200k to public, 1 month 20 working day - 4 mil share, 1 year can throw 48mil share to you.
Then later announce 10% ESOS, his share will go back to 270mil again, then throw to you again next year.
We Ikan bilis hard to fight with the big crocodile

@ocbc, hello bro, YLI is manufacturing pipe, Ranhill is Water supply, very big difference leh.

@LY Hoh, Malaysia stock market is dominated by those short sight trader.
All these trader don't look into fundamental, they just look at chart and trend.
When good news come, they hoot, if price up, then continue hoot.
When things turn bad, they run, they short, regardless whether the counter have good fundamental or good future.
Therefore, fundamental investor is getting harder and harder to make money.. coz market too many short sighted.

Hi @UncleFollower, I think good news will be coming soon.

Overall, the Group recorded a higher profit before tax (PBT) of RM37.55 million as compared to the previous quarter PBT of RM16.40 million. This amount is inclusive of subsidies
received from the government offset by share based payment expense in this quarter Q4
2024.

It seems like LayHong still continue received subsidies in this Quarter.
If without subsidies, not sure Layhong still can be profitable or not.

Wow @Daim88, you must be lost a lot of money in Top Glove.. I can feel your hate on this counter.

Wow... Hexcare has beat Comfort.. It is the first small glove counter that can turnaround from Loss to Profit.

Hi Powerwell, since you got so many project on hand, can you outsource some to Cabnet?
Cabnet order book will be finish soon, and urgently need a big contract, appreciate if you could outsource some project to Cabnet, low margin also nevermind, Cabnet just need a contract to build up its order book.

Very high chances Supermax will throw us a bomb!!!

OMG, even the most lousy HEXCARE also can start generate profit..
Comfort boss, can you explain what happen to your operation?
Why Hexcare ASP and volume has gone up, while yours ASP and Volume is go down?

wow.. super lousy result.
This counter can throw to longkang d tomorrow.

I sold my 5000 shares of Harta two weeks ago at 3.76.
Maybe Its time for me to buy back at 3.26?

YoY has improved, but still loss making.
Normally, TDM always loss making in Q1, maybe due to the seasonal factor (low yield).
But Q2 should be a very good start, as the April 2024 monthly production report has shown a significant improvement in FFB , Crude Palm Oil and Palm Kernel.
If this April result can be repeated in May & June, then Q2 result will be super good.

Few catalyst to be expected on TDM:-
1) Completion of the divestment of the Indonesia unit
2) Listing of its Healthcare Unit
3) More land or plantation estate to be allocated by Terengganu Government

Result is out... Just a normal result, nothing special.
But if you look the the Gross Profit, it is quite surprising (Gross Profit RM18mil based on Revenue RM60mil, almost 30%)
The admin cost for this quarter is very high, I believe this is due to China Man company will always give bonus during CNY, so the admin expenses has increase a lot compare to other quarter. (Unlike MNC, they will normally provision for the bonus on quarterly basis, so you wont see suddenly 1 quarter admin cost has jump up 30-40%).

Refer to the QR commentary, next quarter will be very good, because the court case settlement of RM10,000,000 deposit forfeited will be book in as "other income" on next quarter.

Let hope this Quarter Revenue will be RM56mil, and PAT is RM7mil++.

Hopefully the PAT can be around RM12mil.

Yup Yup, TDM bull will be coming.

RM0.35 is not a dream.. TDM will be revenge to test All Time High.

Wow... SWSCAP deliver a suprising result.
Judge from the drop of the share price from 40sen to 20sen for the past 6 month, at first I thought the Q1'24 result must be very ugly, so I am estimating Revenue RM25mil, and Losses around RM7mil.
Surprisingly the result is Revenue RM37mil (highest in the last 7 quarter), with a small profit after tax of RM200k.

A wise investor told me that Harta, Kossan & Top Glove has show a affirmative recovery, that why share price has go up so much.

Only Supermax still inside the tunnel, many investor still have doubt on the company management, whether they are capable to turnaround the company, or they will continue to waste the shareholder money to buy plane.

So, he choose to bet big on Supermax, as his theory is:-
"If Supermax can deliver a profitable result, then share price will be limit up"

Cabnet, cabnet, when can you announce a big project.
Your order book will be finished soon in next 2 quarter.
Faster go to secure a big project.

Worth to re-look at Comfort.
If Comfort also can turn-around and make profit, then Glove industry confirm is return.
Just a wild bet, hope can see that Comfort deliver a :-
a) Revenue increase RM90mil
b) Gross Profit at RM15-18mil.
c) Net Profit at RM3-5mil.

* Assume there is no more one-off impairment

Now you just need to wait for Analyst buy call.
Kossan result is very good, and we can expect Hartalega next quarter will be even better than Kossan (Perhaps Revenue RM600mil, Net Profit around RM60-70mil).
Same for Top Glove, I believe Top Glove also can achieve RM50mil profit in next two quarter

Harta has mentioned in their QR that due to ramp up of the production line (They have re-activate more production line to cope with the increase demand order, as well as re-commissioning the production line that dismantle from Bestari and reinstall at Sepang).

Yup, agreed that Profit is the King. That why I try to highlight that Kossan huge cash pile has become a burden, as this cash pile unable to help Kossan generate more profit.
Kossan need more profit to sustain its current share price.
Currently its EPS for Q1 2024 only 1.2sen.
It need more profit (i.e. 100mil per quarter) to justify its current share price.

One of the example is INTCO, you look at their company announcement for the past 2 years, basically you can see that the company is actively investing in other business, subscribe to all kind of private equity products, because they have too much of cash, and they need the cash to generate higher return for them.

Top Glove has no such problem, as Top Glove spend too much money to buy back its share.
Supermax also no such problem, as they have use the money to purchase Airplane and build factory in US.
Harta have similar problem, but I believe Harta will continue to expand their NGC 2.0, 3.0.
So far only Kossan have this problem, perhaps maybe Kossan can start to expand upstream, such as acquired LUXCHEM, or expand downstream, acquired some distribution channel at Europe or US.

When glove company is making huge loss, their cash in bank is very important.
Cash = Margin of Safety
Investor feel safe when they know this glove company has few billion in account and this money can ensure the company walk out from the crisis.

However, after the crisis past, the huge amount of cash in hand will become a burden.
It will drag down you ROE.. As all their cash can only generate very low income (3-4%), while investor is paying high PE for your stock (20-30 PE), so they need the company to generate high ROI. But because the industry has excess capacity and company cannot expand further, company must think a way on how to use the money to generate more income.
Is either you start to acquired other company, venture into new business, Invest in quoted securities, or you issue special dividend to investor.
Otherwise, your ROI will be continue to drag by your huge cash pile.

Maybe today not they day yet.
Maybe institution investor want to collect more share, so need to prolong the washing period.
But is okay, we still have next week, next next week.

This counter can start to collect..
Q2, Q3 & Q4 will be showing improving result QoQ.
Target 90sen by end of the Year 2024.

Wish everyone have a good good friday!

One more point I want to added.

With the increase of Tariff in Year 2026, China Glove Company (Intco, Bluesail) will call off all their expansion plan immediately. Because no company will continue their expansion plan if they know 18 months later their sales will be drop by 40%.

This is very good news for Hartalega, as Hartalega can now continue their NGC2.0 plan, as there is no more new capacity threat from China.

Although I am very confidence on all Glove counter, but Hexcare is the one I have least confidence.
This counter is heavily control by someone.. As long as he has no intention to push the price, this counter will not move. But once he has intention to push, Rm1.00 is not a dream.

Confidence that Comfort will closed above 55sen.

Very confidence today will break RM2.60.
Next week will be challenge RM3.00.