Top Glove Corp Bhd entered into a Memorandum of Understanding to negotiate the terms for the acquisition of Adventa Bhd’s unit, Aspion Sdn Bhd, a surgical glove maker. The purchase consideration will be based on a net profit of RM80.0 mln for Aspion in FY18, a guarantee by Adventa to reimburse Top Glove for any shortfall in the net profit and a contemplated priceto-earnings multiple of 16.0x-18.0x the 2018 target net profit. The transaction will be satisfied via cash and shares, with the issuance of new shares not exceeding 10.0% of the value of the acquisition. Following the acquisition, the current management team of Aspion is expected to stay on with the company. The proposed acquisition of Aspion will help Top Glove to establish the group as the largest surgical glove exporter in Malaysia, develop its presence in the surgical glove market as well as boost gross profit margins. (The Star Online)
because they are confused between adventa capital sdn bhd and adventa bhd.. both are of the same owner but different entities.. idiots.. and manipulators.. but thank u for the profit.. now the idiots will die hard..
Since it sold its glove business to Aspion Sdn Bhd in 2012, the company has never been able to find a replacement business that could deliver similar profit level as its previous gloves business. In FY13 (post disposal of glove business) the company only managed to record a core net profit of RM4.4mil. In FY18 (ending Oct 18) the core net profit has dropped to only RM 1.6mil which values the company at 37.2x PE.
Now the company is planning for a right issue of ICPS to raised approximately RM50mil. This means current shareholder of the company need to prepare to come up with and additional capital of around RM0.33 sens per share for the subscription of the ICPS. Those who do not subscribe will risk of further dilution upon conversion of the ICPS to shares and also will lose out on the free warrants given to subscribers of ICPS. Most of the proceeds will be used for business expansion of the healthcare distribution, strelisation & warehousing and home dialysis businesses. In summary when you buy this share at a price of 38 sens, u need to prepare at least another 33 sens later for your subscription to the ICPS. So total investment in this company should be around 71 sens.
If you are looking to diversify your portfolio outside of Adventa (due to the earnings uncertainties in the near future) I would recommend you to look at MBMR.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.5x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.6x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.
For FY19 growth will be driven by the still high demand of new Myvi and the newly launched SUV and also the new Alza in 2H19.
Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. Most analysts have a TP of above RM3 for the company with Hong Leong being the lowest at RM3.13 and Maybank the highest at RM4.50.
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....
tronx
1,172 posts
Posted by tronx > 2017-11-26 20:12 | Report Abuse
0.68 no worry, but u must focus the stock, anything go wrong u must sell as fast as you can