not vested
Trading Buy: COMFORT - 2127
(Last price: RM0.855, Potential upside +17.0%)
Company Profile
• Comfort Rubber Gloves (CRG) offer wide range of Nitrile and Latex specialty examination (powdered & powdered-free) gloves, contributing about 15% and 85% to group revenue respectively.
Trading Catalyst
• We opine that the sluggish 1HFY19 results (mainly driven by the one-off logistics expense related to restrictions slapped by the US FDA) and FDA Import Alert list have been largely priced in.
• Valuations are undemanding at 14.1x FY20E P/E (50% below peers), supported by positive 11% FY19-21 EPS CAGR and potential further boost in US sales following the Pacewell’s acquisition as it possesses a 510(k) FDA license.
• Oversold and pending a technical rebound towards RM0.96-1.00.
Technical View
• Resistance: RM0.895 / RM0.960 / RM1.00
• Support: RM0.830 / RM0.800
• Cut loss: RM0.790
Key Financial Stats
• Trading at 14.1x FY20E P/E (50% below peers' P/E), supported by a positive 11% FY19-21 EPS growth.
Source: HLIB