As many investors are still classifying it as the glove related counter, when the overall glove counters won't move and it lost the momentum. If really zoom into the latest quarter result, you will find that the glove section is only accounted less than 10% of turnover. The counter is on the "right business" - pre-mix but the profit margin still not reflected as the peers in the building materials. Another counter worth to look into is Meta Bright which is also ventures into the pre-mix biz in Sabah by bought over Expogaya.
China's reputation in infrastructure is growing as roads, rail, ports, and even cities are contracted by countries around the world to China. China recently won the Hanoi to Ho Chi Minh City high speed rail which many assumed Japan would get. Indonesia's successful HSR from Jakarta to Bandung could get another contract from Bandung could get another contract from Bandung to Surabaya, again another project thought to be a Japanese win. Then there are the new cities by Egypt and Saudi Arabia being built by Chinese companies.
Today, TopGlove released its quarter result which showed narrow down the loss. The buying interest in the glove related was sparked. Esceram was not excepted. Even though the contribution of glove in the revenue was not exceeded 10% as whole.
I think, the main problem of Esceram is there is no a key shareholder in this company. Each of the top shareholder hold only little percentage of the company. For me, this type of small cap company, the founder / substantial shareholder should hold more than 30%, or the top 10 shareholder should hold more than 60%, then only they have chance to push the company share up.
Q324, The Group achieved a profit before taxation of approximately RM1.40 million for the current quarter. This represents a decrease of 75.54% from the profit before taxation of approximately RM5.73 million registered in the corresponding quarter of the preceding year.
The lower profit before taxation despite an increase in revenue as compared with the corresponding quarter of the preceding year were mainly due to the higher material costs and cost incurred in setting up additional production facilities for building material segment.
Manufacturing segment decline in profit was mainly caused by lower average selling price and sales volume and higher operating expenses.
Cash and cash equivalents increased to 83.7m from 48.4m.
Entitlement subject First and Final Dividend Entitlement description Single-tier dividend of 0.5 sen per ordinary share Ex-Date 30 May 2024 Entitlement date 31 May 2024 Entitlement time 5:00 PM Financial Year End 31 May 2024 Period Share transfer book & register of members will be to closed from (both dates inclusive) for the purpose of determining the entitlement Payment Date 13 Jun 2024
Esceram is big beneficiary from new tarrif on china glove by US. Glove former business can resume normal supply to all glove company in Malaysia and Thailand going forward. Underrated and laggard glove related stock. Resuming dividend payout is a strong sign that it is looking forward to healthier and stronger cash flow in future. Es ceramics already have 90 million cash on hand now.
Tariff is in 2 yrs time . Within this 2 years all other glove stock probably will not able to make much profit still and for small counters still loss making. But Esceramics is already able to pay out dividend shows is the best small counter among small cap glove stock. So it is still laggard.
Its balance sheet is as strong if not stronger than the big 4. Resuming dividend payout is a strong sign that it is looking forward to healthier and stronger cash flow in future.
Obviously the banker a bit caught by surprise. It wont let it limit up so easy. Trying to wash out many weaker buyer at 215. But a bull trend is forming and will outperform in long term
Monthly MaCD is slowly moving up ward to break above 0 in a few mths. Even after fierce throw down from 30 sen 10 mths back. Shows that bankers are collecting when everyone throwing. Very low risk just buy when sell down and keep. Possible of 100 - 200% return compare to other glove stock which have run up a lot.
Review of results for the quarter For the current quarter ended 31 May 2024, the Group registered a revenue of RM93.76 million, represents an increase of 3.63% as compared to revenue of RM90.48 million for the corresponding quarter of the preceding year. The higher revenue was mainly contributed by an increase of 9.93% in the building materials division and partially offset by a 38.46% drop in revenue in the manufacturing division.
The Group recorded a loss before taxation of RM11.26 million as compared to a profit before tax of RM8.30 million registered in the corresponding quarter of the preceding year mainly due to a loss before tax of RM11.33 million in the manufacturing division as a result of drop in revenue and impairment of property, plant and equipment of RM5.55 million following a factory rationalization exercise. The building materials division recorded a lower profit due to impairment of its trade receivable and increase in raw material cost.
Qr suda tugoo lama sekerang baroo keluwa.. Qr suda chantik tapi harga kaunter sema seja macham duloo.. Tadak nayik. Tipu seja ini kaunter.. Puii.. Sekerang duwit seiya habis...
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
AdCool
3,864 posts
Posted by AdCool > 2024-02-22 14:34 | Report Abuse
All because market still categorize Esceramic as a glove counter.