I agree with goh

I do not think there is a need to worry about OFI for investors. OFI product range are own brand and it is doing well. It is not just about Indonesia. They have healthy export markets composition with local markets. Importantly the valuation itself is attractive, not only in terms of peer comparison but the valuation of the company in terms of its balance sheet, cashflow and yield.

Munchy a local food manufacturer (without snack segment) sold at 25 times to PE fund at at Revenue about the size of OFI few years ago. That should help allay fears for those who are worrie with share price fluctuations.

there is nothing to worry about OFI. It is a blip due to MCO impact where the company lost equivalent to 1 full month of operations due to closure and 60%.

Any weakness provides opportunity for long term investors. Strong margin of safety, good balance sheet and yield. Performance will show in 2H of the financial year.

Dear CynicalCyan, I usually do not reply to comments on forums but I was brought to the attention that you have been following my past writings quite closely, so I felt I should be polite to reply your concern.

Not only do I standby my belief in Hartalega, the forces of market inefficiency has provided opportunity to fundamental investors to accumulate and take position in a wonderful company and grow with them over time. If I think Hartalega is a gem back then, it would be more of a gem today. When I first wrote about Hartalega back in September 2020, it was around RM14. Hartalega shortly thereafter even went to a peak of RM 19+ in October 2020. Hence, if you invested in September, you would have been able to net a huge profit in 1 month close to 35% return. I believe that is a splendid return for anyone within 1 month.

Since September 2020, Hartalega earnings continued to deliver record high earnings every quarter in line with my expectations. Even the latest March 2021, with only 64% utilisation rate, the company delivered the highest record profit. In addition, the company have yet to declared the final dividend (usually declared in September or October). Despite that, the share price retraced. Does it make sense? I shall leave that to you discretion as I am in no position to advise you.

If you would like to know more, you can read my new book, Once Upon A Time In Bursa, where I share my thought process and cover stories of good companies in Malaysia's stock market, Bursa. Hartalega is featured in the book as well.


Lastly, investment is not about looking at share price alone in the short term. If you were to invest in companies, it is because you want to be a part of their growth journey. Only by doing so, you will be able to build wealth over the years. If you would like to interact with me, you can contact me at tradeview101@gmail.com as I do not check i3. Tq and all the best.

thanks for sharing the data

The virtue of patience is the most underrated prerequisite to investing.

i like this stock for its solid balance sheet and potential catalyst of TOT acquisition moving forward.

Hi there, politics will always be politics. Playing to the gallery, issuing populist statement without considering repercussions are normal SOP for them. But I dont blame the politician, I think this is the fault of the research houses who plant such ludicrous policy thoughts in the minds of politicians. My view remains the same, I have said it before many times even though research houses like Maybank and Public Bank repeatedly brought the topic up, windfall tax cannot happen because the implementation is the issue. Ask any tax experts or legal experts, they will be able to share the the implementation of windfall tax are on commodities sector like palm oil or Oil & gas where it is a singular product. For gloves there are many classes & types of gloves which is hard to slap a blanket windfall tax across. Hence it is important to be technically sound before making public comments. Furthermore, unlike commodities sector like palm oil and oil and gas, glove makers do not receive direct subsidy from government. Hence it would be unconscionable to impose windfall tax. The budget 2021 tabled which highlighted donation to Covid-19 fund is the best approach to address the implementation issue of windfall tax.

Remarkable. Generous management that shares the profit with shareholders. DY translates to almost 5.76% at current price of RM1.30.

Long term picks are stocks which I am prepared to hold for years. Not for trading but for building a portfolio of stocks.

Good analysis!

We must remember, to be a leader, capacity is not the only metric. Technology and innovation are key to ensuring you maintain your pole position. As mentioned in the article above. Hartalega is the pioneer for Nitrile along with Riverstone.

Top Glove was traditionally Latex heavy with recent years stepping up Nitrile. In terms of % of capacity, Hartalega is the highest in overall percentage ratio out of total capacity.

Any weakness provides opportunity for accumulation. Please note that Riverstone is amongst the most undervalued Gloves stocks despite being a Tier 1 Glove company with amongst the highest profit margin (30%), leader in cleanroom glove, predominantly nitrile gloves, huge cash pile and highest DY among the peers.

Lee Wai Keong, one of the co-founders of Riverstone Holdings Limited, sold 15.5 million shares in the company in a share placement, according to terms of the deal obtained by Bloomberg which comes up to only 2% of the company shareholding. This placement whilst it shows Mr Lee cashing out for years of hardwork building up the business, it also shows confidence by the funds / institutional investor for willing to take a placement at $3.95 a share.

Please note, Mr Wong, the founder, chairman and substantial shareholder has not sold a single share. He holds close to 55% of Riverstone shares.

https://www.kaohoon.com/content/386975

Credit Suisse upgraded TP for Sri Trang Gloves (A 51% associated company of Sri Trang Agro) by more than 100% to THB 142 (currently Sri Trang Gloves trading at THB 72 only), hence Sri Trang Agro as holding co in actual fact is way undervalued in comparison. Do not forget that natural rubber price has stabilised and is picking up due to rebound in the automotive sector where tires are the largest customer segment for Sri Trang Agro - Natural rubber division.

https://klse.i3investor.com/servlets/ptres/56877.jsp

Public Bank Revised TP for MFCB to RM 8.58. This is much better and close to actual FV.

MFCB is good, results excellent. Prospect of growth there. One to hold for the mid to long term. Its fundamentally solid, balance sheet cashflow healthy for a power player. Additionally, reaping fruits of labour now. My humble view - wont go wrong with MFCB.

A great article on gloves

My FV as per the article above is $4.83. This is much more conservative compared to the revised upgraded TP by UOB $6, DBS $5.51, CGS-CIMB $5.50. Please take note my article commentaries on Riverstone was before the analyst revised TP. Tq

Riverstone has hit $4 today. This has been quite a journey upwards for those who are patient and sit tight on profits, you are handsomely rewarded. In addition, the share price has blow past all 3 banks TP of $3.60 and $3.90. Lets look forward to the results soon.

Not true, fundamental companies do not need sharks or operators to push the share price up. Operators and syndicates also do not have the ability to push fundamental counters as because fundamental companies usually are well controlled by management, internal shareholders and long term value investors. There is not sufficient public liquidity to the extent that operators or syndicates can pump and dump. If they do push up, the wont be able to get out in the short term and will end up being in position in the long term.

This is why true fundamental counters do not have big gyrations or violent up / down swings. Hence, syndicates usually can only manipulate penny stocks with large amount of issued shares / enlarged share capital. Let this help clear the misconceptions.

It is good that Hexza finally moved up after such long period of consolidation. It is not easy to be patient especially during a technical bull run where 5-10% gain is small compared to the limit ups and big uptrend. However, this is a steady and stable stock with good fundamentals. Everything checks out. So try to sit on profits instead of short term punting.

Riverstone - $3.31, Topglove - RM 20.56. Supermax - RM 10.86, Kossan- RM 11.32 and Hartalega - RM 16.44. Compared to when we highlighted in our back to back articles in June glove sector plunge, where the price was (Riverstone - $2.28, Top Glove - RM 14.60, Supermax - RM 6.80, Kossan - RM 7.70, Hartalega - RM 11.60), the entire sector has rerated entirely. Even abroad, UG Healthcare is S$1.81, Sri Trang Gloves is THB 68.25, Sri Trang Agro $1.53. The sector with good earnings outlook with sufficient tailwind is this sector. Hence, do not rule out further upside as the earnings / reporting season approaches.

Riverstone share price has hit a new record high of $3.31 today. UOB Kay Hian is first to revise the TP to $3.60. I believe DBS and CGS-CIMB will be revising soon now that it exceeded their TP today. It is my view that Riverstone is one of the best glove company that is still trading at superb value being laggard in the sector as it is the highest net cash in % + highest profit margin (both comparable to Hartalega).

Hexza is a fundamentally sound company that is doing well in all areas. With the natural barriers of entry for the ethanol business, strong investment returns from their overseas equity investment (Nasdaq breaking record high, fair value gain would be substantial in the next QR), strong cash position in the company coupled with a consistent min 4% DY annually, it is my humble view that Hexza has legs for upwards momentum. It meets most of my selection criteria and metrics. Slight recovery in oil price will also give improved performance for Reisin division in coming quarters to come.

we like this company quite a bit. any weakness is worth consideration.

i like Hexza personally. There is DY to act as defence for the share price. Assuming 5 sens declared as per past year, the yield is 4.3% at current price of RM1.20. This will be help give a floor to the share price. If the downside is protected, the upside will take care of itself. Just my humble sharing. TQVM

Another wonderful set of results from RCE Capital, increased dividend further. Yield is 5.8%++ based on current entry price. It has been among our favourite holdings for past few years now.

CGS-CIMB Bank have revised the TP of Riverstone Holdings Ltd to $3.19 and UOB Kay Hian have revised the TP to $3.12. FYI

DBS Bank have revised the TP of Riverstone Holdings Ltd to $3.09. FYI

A note or error to point out - after publishing our article, we noticed UOB Kay Hian has revised the TP of Riverstone upwards by 18% to $2.53. TQ

My Long Term Value Pick 2020 - Oriental Holdings Bhd.

https://klse.i3investor.com/blogs/tradeview/2020-05-06-story-h1506913121-_Tradeview_2020_Long_Term_Value_Pick_A_Gift_For_The_Next_Generation_Ori.jsp

https://www.theedgemarkets.com/article/greenyield-refutes-online-claims-it-largest-latex-producer-bursa

https://klse.i3investor.com/blogs/tradeview/2020-04-20-story-h1506050109-_Tradeview_2020_Principles_of_Investing_Rule_3_Diversification_is_the_B.jsp

GCB amongst those in our list of value stocks to consider. GCB consideration is for growth, expansion and international market exposure. FYI

As part of our diversification strategy, we hold RCE Cap for the dividend play strategy.

https://klse.i3investor.com/blogs/tradeview/2020-04-20-story-h1506050109-_Tradeview_2020_Principles_of_Investing_Rule_3_Diversification_is_the_B.jsp

https://klse.i3investor.com/blogs/tradeview/2020-04-20-story-h1506050109-_Tradeview_2020_Principles_of_Investing_Rule_3_Diversification_is_the_B.jsp

OCK is amongst our diversification picks

We like Pintaras Jaya for mid to long term for exposure to the construction sector.

https://klse.i3investor.com/blogs/tradeview/2020-03-28-story-h1485697934-_Tradeview_2020_My_Principles_of_Investing_Rule_1_Buy_Good_Quality_Comp.jsp

Latest write up includes our rationale for calling a buy on GCB.

Dear Shyityng, since our public call on GCB few weeks back it was RM1.65, market closed yesterday at Rm2.06 with a high of RM2.13. There is no incentive to trap. If you are uncertain or unsure about our articles, please feel free to study our track record.

https://klse.i3investor.com/blogs/tradeview/2020-03-28-story-h1485697934-_Tradeview_2020_My_Principles_of_Investing_Rule_1_Buy_Good_Quality_Comp.jsp

New write up where CCK is among my key highlights. Coincidentally, Public Bank report with TP of 79 sens which is even more bullish than us.

https://klse.i3investor.com/blogs/tradeview/2020-03-24-story-h1485614575-_Tradeview_2020_Cash_Is_King_Time_to_Deploy.jsp

Amongst our 13 stocks, RCE Capital is one of our long standing stocks. It has given us the comfort of sleeping well every night for past 12Q with an ever performing QRs. It’s a steal at current price.

https://klse.i3investor.com/blogs/tradeview/2020-03-24-story-h1485614575-_Tradeview_2020_Cash_Is_King_Time_to_Deploy.jsp

https://klse.i3investor.com/blogs/tradeview/2020-03-24-story-h1485614575-_Tradeview_2020_Cash_Is_King_Time_to_Deploy.jsp

OCK still have much upleg in the tank

https://klse.i3investor.com/blogs/tradeview/2020-03-24-story-h1485614575-_Tradeview_2020_Cash_Is_King_Time_to_Deploy.jsp

Yet to move much and its been in our list

https://klse.i3investor.com/blogs/tradeview/2020-03-24-story-h1485614575-_Tradeview_2020_Cash_Is_King_Time_to_Deploy.jsp

As written here one of our full list

https://klse.i3investor.com/blogs/tradeview/2020-03-24-story-h1485614575-_Tradeview_2020_Cash_Is_King_Time_to_Deploy.jsp

GCB is one those in our list

https://klse.i3investor.com/blogs/tradeview/2020-03-24-story-h1485614575-_Tradeview_2020_Cash_Is_King_Time_to_Deploy.jsp

CCK is one of our choices

feel free to collect on weakness for the strong results, good DY and continuous delivery Quarter after quarter. We like it and will continue to hold it until the market realises its potential. Many have said RCE Cap share price will not go up because it has large debts. Please be reminded that RCE Cap is a finance company, raising debts to disburse loan - its the core business. Just as how a bank operates. With a low IR environment, their cost of borrowing is higher. As long NPL is not high, they will do fine. (Please note that RCE gives loan to civil servants and the debt is an auto deduction method).

we like CCK for a reason. The reason we have called it so many times, its the confidence in the company's management and growth trajectory. Dividend will be declared in due course.

Extremely good results. Long term value pick pays off

PPHB is a no brainer just collect on weakness

https://klse.i3investor.com/blogs/tradeview/186736.jsp

called this 2 months back. DKSH is a no brainer