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2021-05-08 18:52 | Report Abuse
@azman123 , to add on, 3.7B of cash, = RM1.43 per share, they will continue generate more cash, i guess?
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2021-05-08 16:36 | Report Abuse
Supermax hosted a 3QFY21 earnings call earlier today. To recap, the quarter’s total
revenue/core profit of MYR1.94bn/MYR1.04bn were up 4x/13x y-y, as resurgence of
COVID-19 in several countries spurred exceptionally high demand, and thus
ASPs, in 3QFY21. The group also realized the full quarter’s contribution from its Plant 12
Block B (2.2bn pcs pa), which commenced in 2QFY21, but pointed out that there was loss
of production output at its Meru plants in Feb 2021 due to COVID-19 cases. The latter led
to both revenue/core earnings declining 3% q-q due to partial shutdown for sanitization.
Below are the key takeaways from the call:
ASPs have peaked in this quarter. Blended ASP per 1,000 pcs for Jan/Feb/Mar was
USD84.6/87.65/89.2. Supermax has orders booked until the end of this year with
advance payment (30%-50% of order value in some cases) collected. Its contractual
orders in hand will help avoid any drastic fall in ASPs for the rest of the year as spot
prices have gone below contracted prices now. Currently, only 5% of its capacity is
allocated to spot orders. Apr-June quarter blended ASP is likely to be in USD80-110
range, while spot prices are already at USD70-80 range.
•
Any order cancellations for the rest of the year will likely be mitigated by the fact that
most of its orders deal directly with end-customers. Current order cancellations are
being seen among independent distributors but Supermax sells directly to end
customers through its own distribution centres. Currently, income share of
manufacturing/distribution stands at 65%/35% at Supermax. However, any new
contracts will likely be negotiated on prevailing spot prices.
•
Management attributes pressure on ASP to new glove manufacturers emerging,
especially in China, which are fast increasing their capacity and selling at lower prices
in order to gain market share. But management is confident that once ASPs have
come down enough, the profitability of these new players will suffer because of higher
production cost (especially the price of natural gas) in China as compared to Malaysia.
•
Due to shutdown in February caused by COVID-19 cases among workers,
management estimates a revenue loss of ~MYR330mn and gross profit loss of
MYR249mn.
•
Management noted that after stabilising in 3QFY21, raw material prices have started
coming down in May by ~USD20-50 per tonne.
•
On its US expansion, management reiterated receiving approval from a US state
government for capital investment tax credit of USD482mn and currently exploring
potential incentives with a different state in US. It has previously allocated
~USD550mn to invest in glove facilities in the US. Management pointed out that US,
UK and Canada is where most of the customers are located and these locations also
come with raw materials supply.
•
In the long term, management sees intense competitive pressure from new players,
which could bring EBITDA and net profit margins down to 40-50% and 30-40%
respectively, which is still significantly above its profitability pre-COVID-19 level.
•
On foreign labor issues, management said that they work with only a limited number of
agents and hence it was easier to estimate the remediation payments, which were
relatively low and have already been paid. Currently 55-60% workers are foreign.
Share of local workers increased recently after the MCO (movement control order)
imposed last year.
Management said they have exposure to India, where COVID-19 cases are currently
at very high levels, through partners in different provinces, some of which did contact
lens business with Supermax earlier.
•
In terms of product mix in 3QFY21, NBR (nitrile based rubber) gloves formed 68% of
volume, followed by NR (natural rubber) gloves at 25% and 5%/2% coming from NR
latex and surgical gloves respectively.
•
Management said that before COVID-19 started, 40% of its volume went to own
distribution centres under OBM, followed by 30% to independent distributors in over
165 countries under OBM and 30% to OEM customers. This changed post March
2020 with 58% going to own distribution centres, 40% to independent distributors in
over 165 countries under OBM and 2% to OEM customers, especially to the big US
distributors. Once demand starts to normalise management expects this mix to return
to pre-COVID-19 status.
•
Management reiterated its capacity growth target of reaching 48bn pcs pa by end-
2022 (from ~26bn pcs currently). Plant 12 was fully commissioned in 4QCY20 and
plant 13 to 17 are currently under development.
•
Secondary listing at Singapore exchange has been postponed. The company may still
do some shares buy back due to availability of cash in hand and will consider
distributing its existing treasury shares of 103mn as stock bonus as well.
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2021-05-08 16:05 | Report Abuse
https://getusppe.org/data/
see this, nitrile glove is the most shortage PPE in US, not buying from Top glove, who else?
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2020-09-26 00:03 | Report Abuse
"Given the steady stream of handovers over the next few quarters, we are therefore on track to see a substantial portion of our future revenue of RM3.94 billion translated into revenue and profits in the near term," Teow said.
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2020-09-24 23:05 | Report Abuse
@andr yes. future revenue for ewint is 3.9B
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2020-07-21 18:38 | Report Abuse
https://www.egi.co.uk/news/ecoworld-to-launch-new-btr-platform/
The founders of developer EcoWorld London are set to launch a BTR company called Apo, targeting 5,000 homes under management in five years.
EcoWorld International and Willmott Dixon are creating the residential management company to help international institutional partners access residential investments in London at scale.
The end-to-end service will help investors in sourcing investment opportunities, supporting design and development, through to leasing and long-term management of rental communities.
Its first schemes will be the 1,100 homes at EcoWorld London’s BTR sites at Kew Bridge (pictured) and Barking, funded by Invesco, which are both due to complete this year. It aims to grow the business nationally with a goal for 10,000 homes under management in the next 10 years.
Apo aims to partner with investors, developers and service providers. It is currently in talks with a number of developers, focusing on expansion in London initially, with the regions to follow.
The company is being led by Matthew Pullen as chief executive. He has been chief operating officer of EcoWorld for the last two years. Apo is also currently recruiting for senior roles ahead of its launch this year.
Pullen said: “From discussions with investors we believe the key constraint they face is in finding the right local management partners, and we believe that Apo’s approach is unique in combining the proactive day-to-day management that they need with the ability to drive returns through a real understanding of what residents want in terms of service, amenity and community.
“Our projects to date have demonstrated appetite from institutional investors, and as we emerge from the Covid-19 crisis the case for residential investment in London has never been stronger.”
EcoWorld International is a Malaysian listed developer which entered the UK in 2015 and has expanded globally, largely through joint ventures.
In 2018, the company took a 70% stake in Willmott Dixon’s Be Living business, which it rebranded as EcoWorld London. The company specialises in for sale and BTR development. That year it agreed a £400m deal for the Kew and Barking sites, and it is currently on the hunt for investor partners for pipeline projects.
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2020-07-19 14:04 | Report Abuse
@warchest great analysis, appreciate your effort
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2020-06-20 23:55 | Report Abuse
abang_misai 1 question, how come today(20 June) you are able to view 22 June's news?
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2020-06-18 17:05 | Report Abuse
Q2 might be bad, prospect could be good, Q3 and Q4 onwards should be cash and profit flowing in
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2020-06-12 19:12 | Report Abuse
房產商透港人正積極在英置產 5月已售出逾7億元倫敦物件
https://ec.ltn.com.tw/article/breakingnews/3195005
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2020-06-11 19:11 | Report Abuse
EWI will show another project named The Wardian, which faces Canary Wharf and has views of the River Thames.
Prices range from £440,000 to £1.58 million, with penthouses from £1.85 million to £2.4 million. Sizes range from 394 square feet to 1,270 square feet.
The project is more than 80 per cent sold and will be handed over to customers this August.
https://www.scmp.com/week-asia/economics/article/3088600/hongkongers-splash-out-london-property-boris-johnsons-visa
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2020-06-11 18:53 | Report Abuse
Eagle_T, good observation, learned something, we shall see the cash coming in next 6 months
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2020-06-09 15:48 | Report Abuse
mrmeow, long stories, hint: Joint Venture
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2020-06-06 12:38 | Report Abuse
if hker are buying too, hmm...
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2020-06-05 00:32 | Report Abuse
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2020-06-04 12:35 | Report Abuse
my guess for next QR Net profit will be around 80-100 mil, based on current daily traded volume, est will be 4b for Q2
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2020-06-03 09:38 | Report Abuse
@tallman June probably will be the record highest month for volume traded amount for KLCI, also means highest revenue & profit for bursa
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2020-06-02 11:20 | Report Abuse
@RainT FY2020 vs FY2019
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2020-06-01 22:05 | Report Abuse
"this year will be better than last year", by Tan Sri Liew Kee Sin
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Stock: [SUPERMX]: SUPERMAX CORPORATION BHD
2021-07-24 03:37 | Report Abuse
https://www.usitc.gov/publications/332/executive_briefings/ebot_glove_story_global_glove_production_amidst_covid-19_pandemic.pdf