CAREPLS (0163): Bullish

Pattern: Cup

Warrant is reacting indication of a pull out.

Those who bought 29 cents and 30cents, please lock in your profit.

Source: Theedgedaily online

“We do not want to be caught in a situation where we have to add lines in a rushed manner and [thus,] resulting in the construction of the lines not being optimal,” he noted.

The group’s three factories comprise Rubbercare Protection Products Sdn Bhd (Factory 1), Careglove Global Sdn Bhd (Factory 3) and Careplus (M) (Factory 4). Factory 2 is used as a warehouse for its finished goods and materials.

“We are expanding Factory 4, which will see the construction of an additional block that is expected to be completed by the end of this year,” said Lim.

“[Once completed,] the additional building at Factory 4 will be able to house 10 new production lines. We have allocated RM10 million in capital expenditure for this,” he added.

Latex gloves are the group’s main revenue contributor, taking up an 85.1% contribution in FY16 from 90% in FY15. The reason for the drop in latex gloves’ contribution in FY16 was that the group increased its nitrile gloves’ production to 13.7% last year from 9% in FY15.

“Our products come under our Rubbercare brand name. We are also an original equipment manufacturer, in which we produce the gloves for our joint venture (JV) partner AJJ Holding Inc and other customers as well,” said Lim.

Under the JV, Careplus has a 50% 1 share stake in Careglove Global, while AJJ, which is the holding company of Brazil-based Descarpack Descartaveis Do Brasil Ltda, holds the remaining 50%.

South America topped the group’s three biggest export markets with a 69% revenue contribution as at FY16, followed by Asia-Pacific countries at 21% and North America at 5%.

Meanwhile, Lim dismissed a common perception of the glove industry — that a weak ringgit against the US dollar spells out a stellar performance for glove makers.

“Yes, there are short-term benefits from a weak ringgit, but it also leads to a situation where customers would ask for a reduction in prices and the competition from the market [becomes more intense]. Volatile movements in the ringgit are therefore not good for business.

“I would say being more efficient in production to stay ahead of competition is a better driver for glove makers, rather than a weak ringgit,” he said.

Lim is all too familiar with the term “staying competitive”. After all, Careplus is operating in an industry that is dominated by the “big four” of the glove industry — Top Glove Corp Bhd, Hartalega Holdings Bhd, Kossan Rubber Industries Bhd and Supermax Corp Bhd.

“Work hard, keep your costs low and come out with a good product at a reasonable price, and the market will always be there,” said Lim.

Lim was Careplus’ single largest shareholder with a 28.77% stake as at April 14, while its chairman Peter Yew Nieng Choon held a 19.22% stake in the company as at March 30.

Careplus shares breached their one-year high last Friday, closing up 2.5 sen or 6.1% at 43.5 sen, giving it a market capitalisation of RM210.22 million. The counter saw 26.56 million shares change hands, emerging as one of the most active stocks on Bursa Malaysia.

The stock has been trading in a 52-week range of 25 sen to 45 sen. Year to date, its share price has risen 67%.

Careplus hopeful of a better year

By Supriya Surendran | 2017-06-13 08:49:00
KUALA LUMPUR: Careplus Group Bhd is hopeful that its performance during the current financial year ending Dec 31, 2017 (FY17) will be better than last year, but avoids being too bullish considering the cyclical nature of the rubber glove market.

The ACE Market-listed glove maker started the year on a firm footing, reporting a more than fourfold increase in net profit to RM3.76 million in the first quarter ended March 31, 2017 (1QFY17) from RM798,000 a year ago, while revenue surged 77% to RM87.04 million from RM49.05 million in 1QFY16.

Careplus executive director and group chief executive officer Lim Kwee Shyan said it produced 843 million pieces of gloves in 1QFY17, which represented 86% of the group’s total capacity of 975 million pieces per quarter.

“The 86% was our highest utilisation rate achieved so far. It was the result of higher orders from our existing customers, as well as some new customers,” he told The Edge Financial Daily after the group’s annual general meeting recently.

Nevertheless, Lim said the group would need to work “very hard” this year to sustain or improve its 1QFY17 financial performance.

“Sustaining our 1QFY17 growth quantum will be quite a big challenge as we came from a low base in that quarter. But on a year-on-year basis, we expect a better FY17 driven by improved utilisation of our factories,” he said.

Careplus’ net profit fell 97% to RM159,000 in FY16 from RM6 million in FY15 on higher commissioning costs of the new lines in Careplus (M) Sdn Bhd, high learning costs, poorer glove pricing, longer downtime arising from labour shortage as well as higher raw material and utility costs.

Higher depreciation, finance costs, as well as increased costs of natural gas and wages also contributed to the decline in performance.

This was despite a 21% jump in revenue to RM229.44 million in FY16 from RM190.26 million in FY15 on higher sales from the increased capacity built during the year.

The weak performance resulted in a rather high price-earnings ratio (PER) for the group’s shares at over 900 times.

“If you look at our PER, it is high if you compare our current share price to FY16 earnings as we were expanding our lines that year. But if you were to compare the current share price to our 1QFY17 earnings, you will find that our PER has lowered to about 50 times,” said Lim.

Lim also said the group’s three factories in Senawang, Negeri Sembilan have a combined production capacity of 3.9 billion pieces of gloves per year. Last year, Careplus produced 2.61 billion pieces of gloves, which accounted for 67% of its total utilisation rate.

As of end-December last year, the group ran a total of 26 production lines at the three factories. Although the factories are not running at full utilisation yet, the group has plans to add more lines this year, he added.

“Even though [at our current utilisation rate] there is no rush to add lines, we intend to complete the installation of three additional production lines either by December this year or by the first quarter of next year. [We need to do this as] adding lines is time-consuming,” sa

Basically, WCT may not have any problem. Imminent and pending negative news on MALTON may overshadow the price of WCT.

Wow Beautiful

SEACERA is coming back. May have news soon, looks like

It is good that those bought at 30 cents level earlier of WE to lock in profit first.

Looks like.

Will break 44cents soon.

Wow good news, good company which PUCF have bought.

Like today?????? Where the hell got market today???????

Easily will cross 17 c soon

Careplus hits one-year high on lower rubber prices

By Adam Aziz | 2017-06-09 17:45:42
KUALA LUMPUR (June 9): Shares of Careplus Group Bhd rose to a one-year high today as their upward rally continued amid declining natural centrifuged latex prices over the past two weeks.

At 4.45pm, the counter — the sixth most actively traded — was up 6.1% or 2.5 sen to 43.5 sen, after hitting an intra-day high of 45 sen earlier. It saw over 26.01 million shares changed hands.

Careplus’ shares have been trading around the 30-sen range over the past year, with occasional short spikes. This two-week rally came after rubber prices fell for the second consecutive week to a year-to-date low.

Careplus is one of many glove makers which are beneficiaries of the lower price of rubber. An analyst told theedgemarkets.com that the lower rubber price will, for now, mitigate the appreciation of the ringgit against the US dollar, the popular currency used by these exporting companies.

Other listed glove makers include Kossan Rubber Industries Bhd (up 11 sen at RM6.44), Top Glove Corp Bhd (up 10 sen at RM5.84), Hartalega Holdings Bhd (down one sen at RM6.99) and Supermax Corp Bhd (down four sen at RM2.04).

2.50 is an achievable target. TP for IWcity is hard to say. However when it comes, pls sell.

Sure

Agreed B4b4

Please do not regret. It is the time now. Another few days only.

Shipment cannot enter Qatar cause they need to hire UAE's assistance. How building materials can enter?

I am talking of Gdv

Huge award probably in billion

Probably weekend. In business mainstream

Will come this afternoon. 43 sen

Heavy activities. Looks like news coming this week.

Why BetterCo deleted his posting? We requested him to share with us the rumour.
Something fishy.

BetterCo, mind to share the rumours a bit? Good or not?

DNeX active, dips 1.6% on profit-taking

By Sangeetha Amarthalingam | 2017-06-05 12:11:47
KUALA LUMPUR (June 5): Dagang NeXchange Bhd (DNeX)'s share price dipped 1.64% on profit-taking after a stellar first quarter performance when its net profit shot up 180.7% in the period ended March 31, 2017 (1QFY17).

At 11.50am, DNeX slipped one sen to 60 sen with 29.1 million shares transacted, making it the second most active counter for a market capitalisation of RM1.07 billion. In a year, the counter has grown 154.44%.

DNeX's free detachable warrants also fell in tandem by 2.98% or one sen to 32.5 sen with 28.9 million shares done.

On May 24, DNeX reported a net profit of RM15.08 million from RM5.37 million a year ago after its completed transformation to become a stronger company with two core businesses.

Revenue soared 62.96% to RM43.82 million in 1QFY17 from RM26.89 million last year because of the consolidation of its oil and gas company OGPC Sdn Bhd's result, recurring income from operating and managing the vehicle entry permit and road charge system, and continued growth in the group's business-to-business and business-to-government business.

According to SJ Securities Sdn Bhd remisier Goh Kay Chong, the counter was seeing some profit-taking.

Quoting his technical chart, Goh said the stock started to sell down just before the 1QFY17 result was announced and shot up again following the release.

"The price dropped to 53.5 sen on May 31 and started to rebound on 61.5 sen this morning. Investors are catching that rebound, hence the profit-taking," he told theedgemarkets.com.

Heh heh good support at 405

Good support at 40 cents

40.5 almost taken

Yes agreed

Support gaining at 39.5cents

47 cents. Ini kalilah

39.5 cents taken slowly. Will go off soon

Yes B4b4, the cradle is rocking. Violent rocking coming soon

Icon8888, otherwise koko8888, kindly let know the tp.

Support gaining at 38.5 cents

39cents going off.

Yes B4b4. Looks very supported

Fantastic moves today

Will break 40.5 cents today

Almost everyday, we hear of terrorist attacks at any part of the world nowadays.
If KLSE were to take account of each of the incidents, Rayz John can go back to the Stone Age where he encounters attacks from Dinosaurs.
Even FTSE did not track down when the bomb blast occurred during Ariana Grande's concert.
WHAT ARE YOU BLABBERING HERE?
What is your motive here?

Atleast you are narrowing your loses.

Ohhhhhhhhhh Yeahhhhhhhhhhhhh

This is uptrend season. Taken enough rest already. Price dipping is doubtful

Mugiwara, the way they picked towards the last 5 minutes warrants an imminent news, but I expect it by noon lunch break.

I think the earlier operator have been replaced

I predicted that above 45cents may be fireworks, but has not happen yet.