they r now fomo-ing

let the fler LU

wondering who absorbed so much of Bk pembangunan's tickets.. interesting

https://klse.i3investor.com/servlets/staticfile/390356.jsp - annual report 2019 guided strong quarters ahead

(S)uper(C)omnet(G)one(M)ad..!!

yes.. above 1.50 and beyond.. sometime i am confused.. company with no MDA approval and still in developing stage can command so much higher p/e (k1) ..

lets go limit up today

Dont get me wrong, its not about the medical supplies. but more on the supplies to glove manufacturing i ;ve posted previously.

With the increase in ASP of gloves, i believe the company is able to tap on the higher selling price in its raw materials as well.

First barrier will be the previous high @ 1.58..

If it's able to stand above 1.54.. more upside to be seen in the coming weeks.

Overlooked counter waiting to be explored like scomnet..:)

@ml2020

Agreed.. selling is normal to create the healthy forces of Demand / Supply..

Holding tightly

Among all the chemical companies, i believe this should stand out among them all.

Chemicals units:

- Produce chemicals for disinfectant such as HYDROCHLORIC ACID & sodium hypochlorite for Covid 19 as approved by WHO, MOE, etc.

- Calcium Nitrate - for Lates Dipping coagulant


Polymers Unit:
- Top 3 market position for Polymer Coatings in the gloves industry.


Will update more

source:

https://www.insage.com.my/ir/cmn/loadpdf.aspx?sCompanyCode=CCM&sFileName=19241000033516


https://www.insage.com.my/ir/cmn/loadpdf.aspx?sCompanyCode=CCM&sFileName=19210000033112


Believers win..

yes, if stay above 84c..

Gilead’s potential antiviral drug for the coronavirus has flopped in its first randomized clinical trial..

Therefore, Good for healthcare-related.. gloves are up currently

Copper which is one the main ingredient are going lower.. together with oil gluts.. So, operating expenses should be reduced as well.. same goes to gloves related and plastic related industries as resin price is in discount.

To add, Medtecs which manufacturers PPE across ASIA, are surging 30% .

I see the next target to be around 0.845 before we can confirm further upside.

hope u managed to add some @gemstar at the low..

Actually noting much to update, company is willing to give good return. Just let it flow. the 70c level seems intacted.

Healthcare-related counters everywhere moving up strongly. Take for instance, biolidics in sgx surged almost 4x in 2weeks for its RTK. Local gloves moved up strongly. Other HC related are still still high despite yest's sell off

@gemstar

steady..

But the 3.4% mgs 10y rate seems a little toppish, though it has rallied from the its recent peak..

if adjust rf rate lower, say to 2.90% , what will happen?

must thank nike, without his negative inputs , how to collect before it move up? :P

This company should benefit further due to the lack of medical devices in every parts of the world, even in developed countries. As you can see from Donald Trump's tweet below.

---------------------------
From Donald Trump's tweet:

Donald J. Trump
@realDonaldTrump
Cuomo’s been calling daily, even hourly, begging for everything, most of which should have been the state’s responsibility, such as new hospitals, beds, ventilators, etc. I got it all done for him, and everyone else, and now he seems to want Independence! That won’t happen!
------------------------


Not only that, closer to home, the DG of health has now started asking for help due to the shortage of PPE.



At P/e 25x, it seems that the target price given by rakuten is way too defensive. Take a look at the stretched p/e of gloves counters.

the current p/e for its major customers as below :
Edwards lifesciences iss 40.31
Ambu A/S : 174 (yes, 174!!) - gained > 80% year to date ( due to its single-use endoscopes that helps to prevent cross-contamination in hospitals).

So, it's not too much if this stock is able to trade at least p/e 30x or and above... which is about 1.10 on 20% eps growth
(1st post in i3, you buy because for its prospects on future earnings)

-----------------------------------------

Health care remains something of a haven during periods of market turbulence. When the S&P 500 index lost 12% last month, the shares of health-care companies lost only 3.8% when the comparable measures for the financial and energy industries declined 21% and 35%, respectively. During the last recession, between December 2007 and June 2009, health care retreated 25% when the S&P 500 decreased 35%, according to data compiled by Bloomberg.

https://www.bloomberg.com/opinion/articles/2020-04-13/coronavirus-and-its-impact-on-health-care-stocks
------------------------------------


Lastly, it's T+ 2 again tomorrow.


As usual, U can wait for the selling force to subside first before deciding to go in. - ( if u have followed my posts, this trade strategies so far works well 2 times). .#Believer wins

think J&J is more involved in consumer healthcare products. However, i would say it should benefit indirectly from this pandemic, thanks to the fiscal spending that boost consumption..

if limit up..then cantik la.. but unlikely leh..

if can, probably a good announcement in this few days

First barrier, around 71-73c.. If this area is valid, we should see further upside.

This is a growth stock during the virus pandemic, given that the healthcare p/e is 30x on average.. p/e of 20x seems way too cheap..


-------

mentioned in my previous post.. so hopefully this will continue.. believer wins..

why steady?

Highlighted very clearly in layman terms by nst below (posted this in another site-"screener" before, hardly come in here)

https://www.nst.com.my/business/2020/04/580881/stb-sees-surge-new-orders



Among its products that have seen a surge in orders include the disposable bronchoscope, which is used in the first line of lung treatment for patients with suspected or confirmed Covid-19 infections.

The usage of the bronchoscope is currently highly recommended by the American Association for Bronchology and Interventional Pulmonology.

The other product is a critical care monitoring cable that is presently being used for Covid-19 patients in the intensive care unit.

STB produces medical cables that are generally used for connecting various medical devices outside the human body.

It also produces reinforced tubes - used as endoscope and part of endoscopy accessories, connectors and medical tubes.

All of its medical tubes are produced for the North and Central American and European markets.

----

waiting to see if there is force selling today

Guys, Stumbled upon a positive news


Ambu released its profit guidance on 6 Apr, worth to note that this particular endoscopy is supplied by the Co.

(Particularly emphasised on endoscope)
https://www.ambu.com/corporate-info/investors/news-from-ambu


Ambu pre-announces results for Q2 2019/20 with organic revenue growth of 24% and sales of 313,000 single-use endoscopes. On this basis, the guidance for organic revenue growth for the full year is upgraded from “16-22%” to “26-30%” and the number of endoscopes sold is increased from “approx. 900,000” to “more than 1 million”.

(I will update less here as i3 is not user friendly, keep removing my blog :(. )

First barrier, around 71-73c.. If this area is valid, we should see further upside.

This is a growth stock during the virus pandemic, given that the healthcare p/e is 30x on average.. p/e of 20x seems way too cheap..



To be cont

so quiet, all sold?

that's a good sign .. curious where are the sellers of its SComnet-wa ?

just to add on the shortage of medical tubes and catheters that was reported in star media.


https://www.thestar.com.my/news/world/2020/03/28/at-some-us-hospitals-drugs-catheters-oxygen-tanks-run-low


Too bad, these cannot be reused or recycled.


Guess local companies would have started procuring these from the company..any thoughts?

just to add on the shortage of medical tubes and catheters that was reported in star media.


https://www.thestar.com.my/news/world/2020/03/28/at-some-us-hospitals-drugs-catheters-oxygen-tanks-run-low


Too bad, these can be reused or recycled.


Guess local companies would have started procuring these from the company..any thoughts?

Guess this stock is overlooked by the investing communities.



They are a key player in the medical devices supply chain that supplies to renowned lifesciences mufacturers & industry players like
Edwards Lifesciences, Ambu, etc.

Best of all, the products are certified and accredited by CE marking for European Economic Area (EEA) & American Food & Drug Administration (FDA)


1) As of latest Financial for FY2019, supercomal contributed over 65% the group revenue. Reason why the group has been registering profit growth (considering the stagnant contribution of its Electrical wires & cable)

- https://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=0001 (Supercomal 's revenue was flat prior to 2018 before the 100% acquisition of Supercomal medical products s/b)

2) Comparing the recent revenue before and after the acquisition, the contribution in terms of revenue to the group is quite significant. FY2018 53.29mil (88.29 mil - 35mil*) & FY 2019 @ 87.97m (122.97m - 35mil*)


FY 2020 ?? - Refer below

NPM FY17: 7.52%
NPM FY18: 12.65%
NPM FY19: 15.31%
NPM FY2020: Will leave it to you guys to quantify based on the prospects.

( * Considering the flat contribution by using previous average revenue contribution to the group of 2016 & 2017 RM 35mil every year. )


The raw materials for tubes and medical devices are both Copper & Polyvinyl Chloride (PVC) which are currently trading at the low. This benefits the group judging from operating expenses of the group

https://www.investing.com/commodities/copper?cid=959211



3) Some may not aware that the major customers for the group is Edwards lifesciences & Ambu.

a) Ambu -

Ambu A/S is a Danish company that develops, produces, and markets diagnostic and life-supporting equipment and solutions to hospitals and rescue services.

The largest business areas are Anesthesia, Cardiology and Neurology in which the most important products are ventilation products for artificial respiration and single-use electrodes for ECG tests and neurophysiological mappings.

Though these may not be the ventilator but as u all know respiratory ventilation products are all essential in order to treat infected covid 19 patients due to the shortage of the ventilator equipment.


Ambu develops and commercialises single-use medical devices which play an important role in modern health care and help flattening the curve of COVID-19 infection spread. We are committed to keeping our employees and partners safe, while doing our utmost to meet the demand for our products.

https://www.ambu.com/about/corporate-info/investors/investors

b) Edwards lifescience

We are proud to be a member of a critical health infrastructure and admire the agility and passion of Edwards’ employees in maintaining their important work during this challenging environment. Our team is dedicated to ensuring a global supply and providing real-time support for front-line clinicians at a time when it is needed most.

https://www.edwards.com/covid-19-edwards-response?fbclid=IwAR1k2rSW8mo5q13uazTVGR7zjXk8I7Zyqz7aJq-wXCkZqZLP_1aRTo8zsLI


3) Lastly, the products produced by the group include reinforced tubes (used for endoscope and endoscopy accessories), connectors, medical tubes for ROHS & Reach compliant materials. which is currently in high demand.

Source:
https://www.thestar.com.my/news/world/2020/03/28/at-some-us-hospitals-drugs-catheters-oxygen-tanks-run-low



Healthcare related stocks valuation tend to trade above its fair value during virus pandemic. However, given that this stock has traded 54% lower from 52 weeks High @ 1.08 and 58% higher from 52week low think it's wise to collect from anything that is below 50c (it's t+2 today, can try to fish for some bargain)

summarize it here

https://www.i3investor.com/blogs/0001/2020-03-31-story-h51437263-Scomnet_0001_Another_Healthcare_Beneficiary.jsp

Not sure why the selling.. It has no volumes for the past few months until recently. A rm100k was enough to move the price up easily by 5% at least then.

Guess those who bought at the high would have already cut their holding by now.

Although in cimb's report, it was mentioned that the mask contribution to its revenue is only 1pc which is negligible (on what basis? Internal info? ). They also did not point out on other non woven healthcare contributions to the group; which is ~ 60pc.

Lastly, from technical aspects
- the price gap on 28jan was almost covered, buying interests emerged near the low earlier
- the weighted average price from 28jan till today is at about 68c. It might not mean anything to many, but some ppl will use it to gauge where the approximate cost of most players is.
- the bullish macd and rsi took weeks to form, not sure why they want to ruin it so soon but if that is not the intention a hammer candle should form later(see weekly chart)


P/s: there were calls to not to chase high and sell.. So, please do ur own due diligence.

The sales lift from proton ckd aside. At pe 20.4x, it is relatively still cheap as compared to the healthcare proxies ie gloves companies which are currently trading above pe 30x to 50x. Which could face hurdles for on upside.

With the epidemic of wuhan corona virus outbreak which is getting rampant as many more are being infected and casualties numbers are rising. This should bode well for ocncash hygiene products segment. The company should see its China's contributions starting to contribute to its top line soon due to the sudden surge of demand in medical and surgical equipments.

As quoted in latest AR 2018 on its prospects

""
Despite the drop in financial performance in 2018, ONW’s prospect in 2019 looks promising as the new investments
to enhance its capabilities started to bear fruits. We have started supplying perforated nonwoven cloth to a local
customer. Furthermore, our spooled roll nonwoven cloth is in the trial run process in China. Spooled roll nonwoven
cloth is the trend for the local, China and India hygiene market. Meanwhile, we have secured a customer in Eastern
Europe and are in the process of developing additional new nonwoven cloth for them. With the enhanced capabilities
in place, ONW is in a position to meet the demands and new trend in nonwoven cloth.
We foresee hygiene division sales to pick up in the second half of 2019. "" "



I leave to the crowds here to determine and think about its future prospects.