Thanks SS Lee and Observatory. Yes, the undistributed cash will be accounted in.the cash in bank in.Asset column which is balanced in.the balanced sheet as retained earning. The NTA will be increased but this will not be accounted for directly in the future P and L .However,if the cash is used to buy assets which help to increase earnings ,then indirectly this cash helps to generate future earnings through capacity expansions. In.my opinion, markets should give a higher PE to companies which use its cash earnings for capacity expansion than those which need to borrow heavily .

Ben Tan, agreed fully with your observations and critique. The IBs downgrade are disappointing despite Topglove management guidance that 2HFY 2021 will be better and 1H earning already hit 5.26 billions even though there was a 2 weeks shutdown which caused 8 % less shipments in.Q2. You rightly pointed out that had the shutdown not occurred, the profit.would have hit 3.1 billions. With topglove guidance, we.should expect 2H total earnings to exceed 6.5 billions . By taking the 1H and divide by 2 as the projected qtrly earnings for Q3 and Q4 is obviiously incorrect. The analysts should upgrade instead of downgrades Topglove .

Ben , thks again for your article .
In my opinion ,Pakaj Kumar proposed method of assuming FY 2023 reverting to normal earning and add the dividends receive in.FY 21 and FY 22 is a layman and "rough" method of valuation which I had used many times in my comments in topglove forum. This method "conveniently forget " the balance 50 or 30 % extraordinary earnings in FY 2021 and FY2022 which is not paid out as dividend kept by the company to be used for capacity expansion or other purposes. These cash has enormous value but "forgotten" .To many retail investors, they dont value such money but as professional analyst, such cash should not be conveniently ignored. A professional analyst should not omit such cash if the company decide not to pay any dividend but keep all the earnings for capacity expansions. However ,as a layman, I like this method so that I can tell the retail investors not to ""forget "" the huge dividend which will be receive after the earnings go back to normal.

Covid 19 is much more contagious and deadly.compared with normal flu . In the last one year , it had infected 120 millions peoples worldwide and killed more than 2.5 millions . The death rate ranges from 0.1 % to a few % . Those infected and survived after going through ventilators reported horror experience and side effects. The new.variants are even.more contagious. It is not worth taking the risks of not wearing.masks and gloves for those working in hospitals ,clinics ,food and goods delivery services. These awareness will continue to propel demands for gloves. Prevention.is better than cure.

How.many peoples die of flu each year in.US alone? The number is between.12,000 and 60,000 per year. Are there any vaccines for flu ? Yes. Flu vaccines was available decades ago. USA started mass flu vaccinations in 1930 . Every year there are improvements in new flu.vaccines because every now and then.there will be flu.epidemics. Until today flu. epidemics cannot be eliminated despite vaccinations by many travellers and those who are prone to get infected. The vaccinations can last for 6 to 12 months. Likewise , dont.expect covid 19 epidemics to go.away. The pandemics will be under control.in one or two years or may take a few years time but it will not go away completely like polio or smallpox. The covid will be like flu which will occur as epidemic on.and off every year . As a preventive measures, more and more government bodies, hospitals, clinics in first world ,second world and third world.will use gloves. The demand will keep going up as more and more peoples are aware of the importance of preventions. Today only those developed countries like USA, Netherland, Germany , Italy, Denmark has usage per capita reaching 300 pcs per annum. This represent less than 1/10 of the world population. The other 90 % of the highly populated countries like China,India, Bangladesh, Indonesia, Pakistan, Vietnam , African.and Latin.American.countries are still having usages of less than 30 pcs.

Investmalaysia8 , You asked me how many small or medium investors follow Tan Sri LWC and keep the IPO till.today. I dont know but I know those who followed him and keep the IPO till today will be very well off . I knew about this IPO in 2001 but did not buy this stock.at all . I cursed myself for not investing in this stock in.early 2000 s. Today, I decided to follow him . There is a.Chinese saying " woman.is very afraid of marrying.a wrong guy and man is very afraid of going into wrong.field or career" because your choice and judgement will.determine your future. In stock.investment , we are afraid of following or listening to wrong person . I choose to follow.Tan.Sri LCM who is a very successful businesan rather than. some Tom ,Dick and Harry who has no proven.records of success. Tan Sri has been.buying.back Topglove stock since its price drop from.8 to 5 . Since no one can.tell the future, it is your judgement.who to follow. I prefer to follow a successful Tan Sri who know the glove business better than anyone in the forum.

Investmalaysia, I am not talking about property investment which gives only less than 3 % rental yield and appreciate only a few times 20 years ago .I am talking about a world number 1 glove manufacturer which grow 300X in the last 20 years and continue yo grow 20x in earning yoy . I m talking about a stock of which its price had only grew 3X but its earning grow 20x yoy compared with pre pandemic 2019. I am talking about a company.which gives more than.15 % dividend yield not 3 % rental yield.

Investmalaysia8 , an investor who invested 2000 shares of topglove stock and follow the founder and keep the stock.until today is a millionaire . The difference between the small investor and the founder is the number of shares. The small investor with 2000 shares become millionaire today while the founder with billions of shares become billionaire . Both hold the shares for 20 years .

Hartalega and Topglove founders are top 10 richest men in Malaysia while supermx and kodsan founders are top 20 richest men in 2020 list of richest men in Malaysia. They are really long term.investors with perseverance ,conviction.and determinations. Over the years, they have seen the up and downs of their companies but they have never given up when their stocks went.down 50 %. If they had sold their shares due to downgrades by analysts because of wrong acquisition, market crash or market down trends , they would not be the top 20 richest today. They are the super long term.investors. Today , I have not heard of any smart.day.traders or chartist who becomes.billionaires let alone top 50 richest men in Malaysia.I trust these 4 gentlemen more than the IBs, day traders and chartists.

The other obvious omission is gradual capacity increase which will mitigate ASP gradual erosion. For example, the IB worry about the monthly price erosion of 3 to 5 % after mid 2021 but failed to mention the 30 % gradual capacity expansion from.111 billions in 2021 to 146 billions in 2022. Price erosion and capacity.expansion is a norm.in any high volume business. Nothing to be fearful. It is as normal as the.sun will.rise from the east.and set in the.west but the way the.market react.is like dooms days.are coming .

Albukhary , thanks for the sharing . Supermx was the first company which collected deposit last.year when the leadtime was stretched to more than 9 months. Supermx had repeatedly stated in their financial reports that the high ASP was not relected yet in. current qtr result. The best is yet to come. When you buy a house at a certain price and you sign an agreement knowing fully.well it will be delivered 3 years later, you cannot ask the developer to reduce the price when the market price drop 3 years later . Likewise, when you buy a car.with a leadtime of 6 months . the car seller cannot increase the price after 6 months when the.car is delivered even if the price has increase. I do not know why.none of the IB s mention this lags when many glove makers had stated the long leadtimes of 12 to 18 months last year. and assume that when the price drop it will affect the.earnings immediately.

Many may not realise there is a few months lag between orders received , acknowledged versus actual shipments. Topglove reported long leadtime in August last year .The last Q2 shipments were ordered last year with last year pricings . The coming qtrs shipments will defintely be orders from 6 months or more ago. That is the reason why Topglove is so confident the next 2 qtrs will be better. What about Q1 and Q2 of 2022 ?? Since the leadtime is still.high at 170 days which.is about 6 months , whatever orders recd now will be shipped 6 months later . That means the shipments will be in.Q1 of 2022. Even if we assume the ASP start to drop in.March this month , the revenue will only be felt in 2022. I did a quick calculation by assuming the.ASP dropping 30 % from current US 70 to 50 per thousand gradually , with new expanded capacity of 146 billions and margin drop to 45 %, the total earnings per year can still hit 12 billions for FY 2022.

I read the latest qtrs prospects sections of all the top 4 glove makers , all are optimistic and.stated the the coming qtrs will be better with strong demand . None so far are pessismistic.

pBlue, you are right.，in fact , based on the latest Topglove aggressive expansion plan , 2022 capacity is expected to hit 146 billions which is twice the pre pandemic.capacity of 73 billions in 2019. The 30 to 35% ASP erosion in 2022 will be almost compensated by the.aggressive capacity expansion. In 2023, the capacity will be increased to 178 billions followed by 205 billions in 2024. Such aggressive expansions.is to catch.up with the anticipated demand growth projected from Frost and Sullivans Rrsearch.

bagankia, if there had been no 2 weeks shutdown in.Nov/Dec , the Q2 revenue would have been more than 6 billions and earning would have been more than 3 billions. Lets hope there is no disruption in production.for the next 2 qtrs . I expect the total 2 qtrs earnings to be about 7 billions.

bagankia , agreed. Despite higher.capacity in.Q2, shipments of gloves was 8 % lesser than Q1. The 2 weeks shutdown reduce productions by 15.% which is substantial .

Andre , the ASP will come down.gradually to normal level in 2025 or 2026 based on.Frost and Sullivans Research which was.commissioned by Topglove.

How the best gets better ?
Topglove is the world number 1 glove maker . The earnings have been getting better and.better for the last 4 qtrs from 3.65 x yoy to 16.4x yoy , 20.3x yoy to the latest 24 x yoy. Based on the presentation material, the 2H will be even better . So the best is yet to come.

Tantaro , thanks for sharing Tradeview Topglove 2Q Result Update. Tradeview has made a good summary of Topglove management update. The key points I want to emphasise is

1. 2H will be better than 1H due to more capacity and higher ASP. Earning is not peak yet .You can expect better earnings in the next 2 qtrs.

2. Based on Frost and Sullivan Research, demand will grow 28 % in 2021 , 17 % in 2022 ,14 % in 2023, 12 % in 2024 and 10 % in 2025.

3. The glove usage per capita in Feb 2021 data for Netherland , US and few others had surpassed 300 pcs per year while usage in highly populated countries like China, philipines, Indonesia are still below 20 . There is still. huge room. for growth. The total world demand in.2025 is 732 billions which is less than 100 pcs per capita assuming a population of 7.8 billions in 2025.
In summary ,the best is yet to come and there is still growth in the next 5 years and the subsequent years.

Another way of estimating profit . Assuming capacity of 90 billions per year , 30 % spot sales at US 110 per thousand pcs, 70 % normal sales at US65 , profit margin at 50 % , exchange rates of 4.04 , capacity utilization of 95% and 5 % capacity loss due to factory shutdown in.Nov /Dec , the estimated earning is ( 0.3 x 110 + 0.7 x 65) x 90 x0.5 x 4.04 x 0.95 x 0.95 /4 = 3219 millions per qtr.

I bought Topglove in.June 2020 after it announcr a 3.65X yoy profit increase. The price had increased to 15.50 anticipating s much better results in.coming qtrs. Then in Sept it announced a 16.4 X yoy profit increase . With added.spot sales and higher ASP , in Dec.2020 , it announced a 20.3 x yoy profit increase to 2375 millions. Today what will be the yoy % increase assuming 5 % capacity increase and 10 % ASP increase compared with last qtr ? 25 x , 30 x or 35 x ? My guest is 28 x yoy which is a nice number. If it is 28 x , then the earning will be 3220 millions. or eps of
39 sen.

Due to the unprecedented surge in demand , all glove makers are accelerating their capacity expansion aggressively to reduce leadtimes such that more peoples have can use gloves as preventive measures from getting infected . Prevention is better than cure . Topglove pull up its plan by almost tripling its capacity from 73 billions in 2019 to 208 billions in 2024. ASPs will drop gradually with such aggressive expansion . We look at it positively . Based on Frost and Sullivans ASPs charts, the estimated earnings for 2024 is about 7X of 2019 total earnings . However, some commentators intentionally view such expansions negatively. Isnt expanding capacity to meet the demands with shorter leadtimes and lower ASPs a good deed.
这些人居心何 在? 罪过，罪过。

Investmalaysia8 , if we follow the Frost and Sullivans Research, ASP will drop to US 30 per 1000 pcs for nitrite glove in 2024 from the current.peak of US85 . Based on latest Topglove aggressive capacity.expansion plan , it will have 208 billions capacity in.2024. This is more than double of 2020 capacity of 93 billions. The estimated EPS is 28.8 sen assuming total number of shares of 9.7 billions. With a PE of 28 , the tgt price is rm 8.06 . Dont forget the.huge dividend you will be receiving in 2021 to 2023. Do you have earning visibilities for Greatech , Penta, MPI or your favorite UWC ??

Finally, we have a report.from.Affin.Hwang which.quoted numbers from.Topglove/Frost and Sullivans on gloves Demand and Supply plus ASP s for the next 5 years. The.CAGR of demand is 15 % versus the 8 to 10 % growth in the pre pandemic periods. This is a big contrast to the naysayers who prophesised demand will drop to pre pandemic levels. The ASP will drop gradually after the peak instead of drastically as prophesised by naysayers. In.my opinion, as long as the leadtime is more than 6 months not 12 months , the ASP will erode very gradually as demand is still more than.supply. It looks like equilibrium of supply and demand most likely will happen in 2024 .

When the demand and supply is in.equilibrium, the leadtime will be ranging between 1 to 8 weeks. Since March last year when.the lead times increase from the normal 1 to 8 weeks to 3 months, 6 months , a year and then.18 months , it is very clear demand far far far exceeded demand in second half of 2020. The fact that all the 2021 capacities were already booked since Jan this year , all new orders from.now until.end of 2021 has to be pushed out to 2022. How fast the leadtimes of more than 300 days be reduced to the normal depends on how.fast new capacities can be added. With the pandemic still ongoing and 2021 orders pushing out to 2022, demand will still exceed supply in 2022. Based on.Ben Tan article yesterday, Topglove is accelerating.its capacity add from its previous plans. Will 2023 reach the equilibrium of supply and demand? The glove udage per capita for US and.a few other more advanced countries in Europe has gone up from average of 150 pcs in 2018 to more than 200 pcs in 2020 due to the dreadful pandemic. In 2018, usage of glove per capita in Brazil ,China, India and Indonesia were 24, 6, 4 and 2 pcs respectively. Will the usages increase to 100 pcs per capita in these highly populated countries. Assuming the world average of 100 pcs this year, the total demand will be 780 billion.this year with current world population of 7.8 billions. Imagine if the world average is 200 pcs in 5 years time with the new awareness and new norms brought by the dreadful covid 19 pandemics. The demand per year will hit 1.6 trillions which is more than 4X of 2020 total gloves shipments. The room for growth for gloves is still very huge.

Ben Tan, Thanks again for obtaining the latest update from Topglove on its expansion plan. It looks like the expansion plan.is more aggressive in FY 2022 to 2024 compared with its earlier plans. Topglove is trying to reduce the leadtime further so that it can capture more customers. Customers may run away if leadtimes are too long.

survivor13 . noted. thks for the advice .

Dicky Me and Honesty, the numbers are Worldwide total numbers which include all glove demand . It is not Topglove numbers only.Take for example 2020 demand of 356 billions which is about 4X.of Topglove annual capacity of 90 billions . It is a well know fact that Topglove is the worlds largest.glove manufacturer supplying 25 % of world total glove requirements.

Further to my comment yesterday that even during the 8 years period without pandemic from 2011 till 2019 , there was an annual growth rate of 9 %, I would like to share the actual growth rates during the pandemic in 2020 ,2021 and the years after that. Based on data from Margma and International Trade centre, the demand for gloves grew 20 % to 356 billions in 2020 from 298 billions in 2019. In 2021 , it grow another 25% to 447 billions. The cumulative demands for these 2 years are actually more than 50 % . The demand could be higher if sufficient capacities are installed in.time.Many orders were pushed out further with long lead times with almost all glove makers reported 2021 capacities fully booked since Jan this year. The glove.makers are not able to meet the sudden.more than 50 % increase in demands as the lead times to increase capacity takes 9 months or more . By the time in April or.May last year to order the.equipments, only.in Jan , Feb 2021 can the.additional capacities be added. Most of the top glove makers announced doubling of their capacities within.5 years. This is equivalent to 15 % CAGR. If we assume the glove usage growth rate at 15 % in.2022, 2023 ,2024 till 2025 , the.demand will still exceed supply. Lets.do some maths. In.2019, total world wide.capacity is 298 billions. In 2024 , the total capacities will reach. 596 billions ( double) but demand in 2024 will be 447x 1.15 x 1.15 x 1.15 = 680 billions . As long as demand exceed total available capacities, ASP need not drop drastically. It may drop gradually at 10 to 15 % but this drop will be compensated with the 15 % added capacity each year. Hence the earnings for the next five years could be maintained or taper off gradually. I will.comment later on.glove usage per capita for.different continents and share the huge rooms for demand growth for the next 10 years.

Based on.past data compiled by Topglove, during the 8 years from.2011 till 2019 , the CAGR of glove demand was 9 % even though thete was no pandemic during these 8 years. The world demand grew from 148 billions per year to 298 billions per year . During these 8 years the demand and supply was in equilibrium. That means the total worldwide capacity was able to meet the demand without any excess capacity . This data showed that even.without pandemic , glove demand will continue to grow between.8 to 10 % per year. Hope this will dispel the myth that the demand will drop after the pandemic. I welcome any comment .

The Harta and Topglove CEOs had repeatedly stated that the Demand for gloves will exceed supply for the next 3 to 4 years . They stated that with facts . The short sellers continue to scare off the retail investors with statements like once pandemic is over , demand will go down , supply will exceed demand , price wars , ASP will go down but with no facts or numbers to substantiate their claims.

Investmalaysia8, in my previous message, topglove is expected to make a total of 28 billions from 2020 to 2024. This extraordinary earnings is 7 times what topglove.made in the last 20 years. This excludes the 7.8 billions from the HK listing. Topglove management will.use about 10 billions for capacity expansions and other improvements to double its capacity from 2020 to 2024. This 10 billions is less than 50 % of the 35.8 billions ( 28 +7.8 billions). The balance money is more than enough to pay 70 % dividend in 2021 and 50 % for the rest of the years.

Yong Ken , per my understanding for Sinovac vaccines, the efficacies were 50 %, 78 % and 100 % based on an experiment in.Brazil with few thousands persons. How to interpret these 3 numbers ? It means that if 1000 persons were vaccinated and exposed all of them under the virus after vaccinations, 500 will be infected . Out of the 500 infected and tested positive, none died or have very severed symptoms which require ventilators, 220 will have moderate symptoms like fever, coughing and then recover and 280 had no symptoms or just have mild fever. These 50% can still infect others while on.recovery stage. The Pfizer Claim of 94 % efficacy is not very clear . They did not stratify like what Sinovac did. You can compare with Sinovac 100 %,78 % or 50 %. Pfizer vaccine is better if you compare with the 50 or 78 %. Pfizer is worsed than Sinovac if you compare with Sinovac 100%. Based on Israel earlier mass.vaccination results , there were still 6.6 % of vaccinated peoples infected and tested positive. In my opinion, the Pfizer 94 % efficacy does not take.into account of those with moderate sypmtoms .The 6 % is with severed sypmtoms .

It is very simple to calculate forward dividend yield for 2021 . The average consensus projected earning for 2021 is rm 12.5 billions. With 70 % payout , total dividend per share is 1.07 sen with 8.2 billion.shares. Dividend yield based on purchase price of 5 is 21.4%. Where on earth can you find stock with such lucrative dividend yield.

Ben Tan , thanks for your effort in collecting these informations . These informations are very useful . EPF are greedy when many are fearful. A good contrarian strategy in stock investment.

When you look into details of Q4 financials, you can notice that the receivables were increasing from.Q1 199 million to Q4 307 millions. Also the Free cash flow for the whole year was only 293 millions. With a profit of about 323 millions for the whole year, the Free.Cash.Flow must be more than the earnings if you add back the depreciation which was paper lost only. The higher receivables showed that there was.a delayed cash payment of about 100 millions. If this 100 millions was not delayed, then the cash in bank would be 100 millions higher and recivables 100 millions lower. MFCB could have paid a higher dividend . 100 millions is equivalent to 20 cts per share. In business , there is 30 days, 45 days or 60 dsys payment term. Hopefully in coming year the cash flow received will be about 400 millions assuming no more increase in.receivables.

Top glove 2020 calender year 2020 made 4.1 billions which was higher than what topglove made from the last 20 years from 2001 till 2019. Topglove will.make another projected 24 billion from 2021 till 2024. The total profits will be 28 billions made during this extra ordinary 5 years. This total earning is 7X of what topglove made in the last 20 years. It is silly and illogical to disregard such huge earnings which can be used for investment in capacity add, acquisitions and pay special dividends. Assuming 50 % payout as dividends, the balance can be used to generate at least 10 % ROE through acquisition and capacity expansion. This balance 14 billions can generate additional of at least 1.4 billions earning per year. This is my simple and easy to understand layman analysis.

I added Harta, Topglove and Supermx sincr monday until this mornings. Do not want to miss the jumbo sales opportunity to buy dirt cheap quality stocks.

Ben Tan, thanks again for the above article on supermx.

Investmalaysia8. YES. Topglove achieved Exactly 7 consecutive qtrs of increasing profits from Q3 2019 to the latest Q1 2021. The profit increased 32X from 75 millions to 2376 millions. The quantum of increase is MUCH MUCH higher( 10 times) than the 3X increase for UWC which increase from 9 million to only 27 million. It is good that you bring.up how wonderful the earning achievement of UWC so that more investors can see the even more wonderful.achievements of.Topglove. However , it is unfortunate that while UWC with 3x earning increase had its share price went up 13 x while topglove can.only.achieved.share price.increase of only 3 x. The market is insane or our investors are insane .

DY ranked 4th or fifth in investment criteria . The number 1 criteria us earning.growth followed by Cash flow , PE , ROE. Take Penta as an example. It did not pay a single sen.dividend from 2008 until 2020 despite its tremendous earning growth. Its share price grew 50X from 2008 till 2020. The.cash in.bank also grew exponentially. If you had invested 100k in 2008 and sleep on it for 12.years .When you wake up , you found the 100k become 5 millions although there is not a single sen of dividend.

Ben, although the 7.8 billion recd from HK listing is not considered as earning, it is still part of "income " recd as cash. It could be used to pay dividend also.

Ben Tan detailed analysis is able to answer many questions on investors mind. The ASP will peak in 2021 and tapered off to 2025 . Look at the projected earning in 2025. It is 4.2 x of 2019 earning. This projected earning is based on a very reasonable post pandemic ASP , doubling of capacity ,utilization.rate of 86 % , exchange rate of 4 and net profit margin of 10 %. Today TG share price is less than 3x of pre pandemic but its projected earning in 2025 is 4x of pre pandemic in 2019. Dont forget the super duper dividend of about rm 2.02 you can get in the next 4 years based on 70 % payout.

Newbie444, PE 27 in fy 2025 is neither cheap nor expensive. PE 27 is reasonable based on TG historical PE at stabilised state. Dont forget , you will teceive SUPER dividend of rm 1.06 in 2021, rm 0.5 in 2022,rm 0.26 in 2023 and rm 0.2 in 2024. The total dividend add up to rm 2.02 . This total us almost 40 % of current share price .

Ben Tan , thanks for the detailed analysis. I agreed with you that there are many assumptions using DCF method because after we added all the discounted cash based on some finite number of years ,there is still a terminal value for the company which requires assumptions. You arrived at a discounted enterprise value of 105.9 billion present value . If I divide this value with current 8.2 billion TG shares, the value per share is 105.9/8.2 . This give a value of rm 12.9 per share. In view of the coming listing of another 1.5 billion shares at presumably 5.20 , The total number of shares will increase to 9.7 billion and the total cash will be 105.9 + 7.8 = 113.7 billions. The current value
per share after listing will be 113.7/9.7 =
11.7 . This could be on the high side compared with RHB tgt price of 8.45 which also use DCF method.

To predict the future , it is best to look at the past records. In the last 20 years,we have.seen 3 pandemics. The first is SARS in 2003 followed by H1N1in 2009 and then covid 19 in 2020. The.SARS was relatively smaller pandemics which killed a few.hundred peoples in a few countries . We saw topglove earnings doubled in 2004 and continued to grow organically until 2009 when the bigger H1N1 pandemic started in 2009. The earning double again within.a year in 2010 . The earnings tapered off for a while before it grow again organically until 2020 when covid 19 sparked a huge and unprecedented growth of more than 10x earnings by the end of the year. This pandemic.is 10 to 20x bigger than the previous 2 . The profits will continue to grow in 2021 and most likely in 2022. If history were to repeat , then.in 2023 or 2024, profits will tapered off.and then continue to grow organically. It is silly and illogical to think that the earnings will go back to pre pandemic levels. If you want to have a better FEEL , please look at the qtrly earnings in details for topglove in the last 20 years, then you can better appreciate what I am talking. Facts never lie.

RHB used Discounted cash flow ( DCF) method to value TG. This method takes into consideration current debt and cash plus all future cash generated discounted to present value . It comes to 8.45 tgt price. This is quite close to my assumption of 6.30 plus 2.00 .

If I assume the ASP to drop to US 25 per thousand from the current US 100 , a capacity per year of 170 billion in 2024 and a net profit margin of 10 %, eps is estimated to be 21 sen. With an average PE of 30 at stabilised state, its tgt price is rm 6.30. I estimated the total dividend receive in 2021 to 2023 to be about rm 2 based on 70% payout. It is still a very good buy at current price.

MFCB need to prioritise which one to allocate their cash. They have to settle the loan , paying for 2 new packaging factories plus others before paying shareholders dividends. MFCB needs cash to expand its business unlike uchitec.which.is dividend play counter. MFCB.is a growth counter . I think the packaging and solar power business will grow substantially in the next 2 to 3 years

gemfinder, enough lah. You bought mfcb more than a year.ago below 5 and sold a few.months ago at 7.40 . You have made 50 % . If you dont like mfcb now , you can spend time at.those counter you like . You just bought uchitec at 3.31 , go to uchitec and promote lah . I also bought uchitec earlier.