The current theme in KLSE market, is steel , aluminium ,
that is the thematic play for April , May 2021
This unknown company is hidden as a steel pipe manufacturer, but actually has a 100% owned company that specializes in setting up the system of glove dipping lines.
Do not miss this special stock - STEEL KSSC - 5192, as this stock is super undervalue.
KSSC
Target Prices Mid term --- RM 1.00 Short term--- RM 1.50
Although spot prices have dropped, the volume of sales have increased to counter the drop due increase in demand. That's why PAT is still maintaining at 1B. Infact if not for the shut down of the Meru plant and 400M in inventory due shipping container shortage, PAT would be much higher above market expectation.
So all in all, good performance and excellent PAT compared to any other company in Malaysia or anywhere in the world.
AS for future performance, look at its potential. Top Glove already banned from US. China is not in good books with the US. So Supermax is the only major glove manufacturer to tap that 25 Billion annual glove supply in the US. Especially when they have manufacturing plant in the US itself.
Covid 19 is here to stay. World numbers in new vases are increasing. Glove demand will continue to surge. New players will find it difficult to compete with the big 4 or 5.
So future PAT will continue to remain. Also Supermax has ventured heavily into masks as well.
Will there be M&A in the glove companies to compete in the global market? Usually M&A enables companies to elevate their next level of profit. Hope so they will do that soon
MIDF Research’s analyst Ng Bei Shan, who also opined that Supermax’s 9MFY21 results missed expectations, believed the group’s ASPs likely to have peaked in 3QFY21.
“Gauging from Supermax’s latest set of results, we think that ASP for the company has likely peaked in 3QFY21,” she said.
She expects that ASPs may moderate depending on the development of the pandemic and how well and soon the situation can be contained.
“We understand that some buyers are adopting a wait-and-see approach in replenishing their inventories given the high prices currently,” she said.
She revised down Supermax FY21 and FY22 earnings by 4.7% and 6.7% as she adjusted her ASP and input cost assumptions to better reflect current market dynamics.
While reiterating buy call on Supermax, she lowered its TP to RM6.73 from RM13.83.
When drop all cursing damning only, why, becos y'all succumbed to greedy excitement & all chasing crazy at high lor
Start learning to think positive la, drop time is another buying oportunity for you, just need to wait little bit to gauge agak2 bottom level la, can never get pinpoint precision one
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....
zanbini
383 posts
Posted by zanbini > 2021-05-04 09:54 |
Post removed.Why?