The entry to glove industry at the height of demand is an excellent chess move that will put them in position for 2 reasons.
First, with higher ASP during the pandemic will allow them to recover their cost of investment quickly. Think about the 1 billion profit from Supermax. Scientist already predicted that even with vaccine COVAX, the world will normalize after 2025.
Initially glove order for Fintec is about 39.9 million gloves. Assuming ASP at Europe is price at conservative EU35 or RM170 per box plus additional safety of margin at 30% comes to about RM119 per box. This will account an estimated revenue of RM47.5 million q-o-q or RM189 million.
The EPS is expected to be RM0.015 per quarter. The good news is ASP will be on the rise due to back entry order which pretty much taken up to 2021. It is not only for the vaccine industry but rather for other industrial demands mainly food and sanitizing sector.
Another good news besides low barrier of entry to glove industry is that unlike TG and Supermax where the price reflects current market valuation, Fintec's valuation is not on IB scoreboard yet. Once the big players comes in, the potential upside will be very good. One of their key investor is Sanston Financial Group Limited which is known for spotting high growth stocks. Finally ESOS at 0.11 must mean something to you. My short term projection is an easy RM0.16 cents target price. It is up to you to buy or not.
Prime Minister Tan Sri Muhyiddin Yassin announced the National Covid-19 Immunisation Programme set to be rolled out at end-February, the country’s biggest vaccination effort ever. Muhyiddin said that 80% of the country’s population, or about 26.5 million people, were expected to receive the vaccine free of charge.
10-12 cts shouldn't be a problem Better than bank FD interest current at 1.88% Will reduce further in April when Opr cut again Buy and hold for a year As their gloves lines are setting up by mid year
Hold some Fintec for sudden future gain. Sudden jump maybe up 50 sen when Fintec suddenly materialises their paper gains one day. Those do not hold any shares will cry here cry there. Happy New Year everyone. Have faith in Fintec.
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....
Envestor
75 posts
Posted by Envestor > 2021-02-04 15:40 | Report Abuse
yeah very unpredictable. Regardless managed to collect.