Supermax

Re: Supermax

Postby winston » Thu Jun 25, 2020 8:17 am

not vested

On June 3 above, Koon was pricing in Forward PE 20 and Forward PE 26.

It's interesting to note that he has now (June 22) reduced his Forward PE to 20 and 15 now.

For Commodity products, shouldn't the PE be reduced further to 10 or even 7, especially when they have controlled Covid19 (possibly in 2021) and when there's over-capacity in the industry?

====================================================

June 22, 2020

Supermax: my target price

by Koon Yew Yin

I refer to the above report, total issued shares is 1,300 million.

1st quarter revenue Rm 447 million, NP 71 million, EPS 5.42 sen.

Since the company has its own sale outlets in US and other countries, it can easily increase its selling price for gloves. Any price increase is pure profit.

It is quite safe to assume it can increase gradually 100% minus 30% tax = 70% by the end of the 4th quarter. That is 70% of Rm 447 million = Rm 313 million divided by 3 = Rm 104 million or 8 sen EPS in each quarter.

2nd quarter EPS 5.42 sen + 8 sen = 13.4 sen

3rd quarter EPS 13.4 sen + 8 sen = 21.4 sen

4th quarter EPS 21.4 sen + 8 sen = 29.4 sen

Total 70 sen

Assuming P/E 20 target price Rm 14
Assuming P/E 15 target price Rm 10.5

(At P/E 10, the target price will be RM 7; At PE 7.5, the Target Price will be RM 5.25)

https://klse.i3investor.com/blogs/koonyewyinblog/
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Re: Supermax

Postby winston » Tue Jul 07, 2020 9:49 am

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Supermax (SUCB MK)
Shines Bright Like A Diamond


Against the backdrop of unmet burgeoning glove demand, Supermax is well positioned to be the best beneficiary of record high ASP hikes.

Its OBM and distribution network are the envy of the industry.

To top it all, this coincides with its timely yet aggressive multi-year expansion, outstripping its peers. With these positives and consistent execution, Supermax should narrow its deep discount to comparable peers. Initiate coverage with BUY and target price of RM12.40.

Source: UOBKH

https://research.uobkayhian.com/content ... 841d6ff2ba
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Re: Supermax

Postby winston » Tue Jul 07, 2020 10:44 am

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Higher-than-expected ASPs on the cards

Our recent meeting with SUCB yielded positives, mainly on higher ASPs recorded and increased allocation for spot orders (20% of total capacity).

For its 4QFY6/20 results to be released by mid-Aug 20, we expect SUCB to post a record-breaking net profit of RM320m-350m (>100% yoy and qoq).

Reiterate Add, with a higher TP of RM12.80 (25x CY21F P/E).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... BB79861DC3
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Re: Supermax

Postby winston » Wed Oct 21, 2020 9:41 am

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Glove demand: No signs of slowing down

Our recent meeting with SUCB yielded a positive surprise for earnings prospects, driven by better ASPs and orderbook visibility until end-CY21.

SUCB said it has strong order visibility up to end-CY21, with large-volume buyers willing to pay deposits of 30-50% to lock in orders.

Reiterate Add with a lower TP of RM13.20 as we roll-over our valuation year.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 8415CC7EDA
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Re: Supermax

Postby winston » Wed Oct 28, 2020 8:02 am

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Supermax eyes listing on Singapore Exchange

by Wong Ee Lin

KUALA LUMPUR (Oct 27): Supermax Corp Bhd, which just announced a record quarterly net profit of RM789.52 million today, is planning for a dual listing on the Singapore Exchange (SGX) to expand and diversify its shareholder base.

The proposed listing down south will also enable the glove maker to pursue growth opportunities by providing additional channels for Supermax to raise funds if needed, said Supermax in a filing with Bursa Malaysia today.

Supermax noted that the proposed SGX listing is still at an initial stage and the structure of the listing has not been finalised.

"More details in relation to the proposed SGX listing will be made available in due course, if and when the board finalises the plan for, and approves, the proposed SGX listing," said Supermax.

Presently, its rival Top Glove Corp Bhd is the only local glove counter that has a primary listing on Bursa Malaysia and a secondary listing on SGX.

Last month, Top Glove confirmed that it was evaluating a dual primary listing on the Hong Kong Stock Exchange.

While it did not offer specifics, Bloomberg reported that it was considering raising more than US$1 billion from the listing exercise.

Shares in Supermax closed 57 sen or 6.19% higher at RM9.78, making it one of the top gainers on Bursa Malaysia today. It has a market capitalisation of RM25.05 billion.

Source: The Edge

https://www.theedgemarkets.com/article/ ... e-exchange
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Re: Supermax

Postby winston » Wed Oct 28, 2020 8:12 am

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Bumper 1Q for glove maker Supermax as net profit rises over 30 times to RM790m

by Tan Siew Mung

KUALA LUMPUR (Oct 27): Supermax Corp Bhd today posted a record quarterly net profit of RM789.52 million, up almost 32 times from RM24.75 million a year ago, thanks to the continued booming demand for rubber gloves amid the Covid-19 pandemic.

The glovemaker’s bumper earnings for its first quarter ended Sept 30, 2020 came as revenue surged 265.6% to RM1.35 billion, from RM369.94 million a year ago.

“Supermax’s already sound financial position has strengthened dramatically, most notably to a net cash position with cash and bank balances amounting to RM2.36 billion as of Sept 30, 2020.
This is mainly due to high collections from increased sales where customers pay between 30% to 50% deposits in advance to secure supply,” said the glovemaker in a filing.

It also noted that its products are sold to over 165 countries and it currently exports 58% of production under its own brands via its own distribution centres and 40% through independent distributors.

In terms of capacity expansion in Malaysia, Supermax said it has put in place expansion plans of building five glove manufacturing plants between now and 2022.

“This will yield additional production capacity of 22.25 billion, making a total of 48.42 billion gloves by the end of year 2022. The Supermax Group will invest a total capital expenditure of RM1.39 billion for the new plants,” it said.

“We are now in the planning stages and will kick-start the US and UK projects in 1H2021 and target commission in stages starting 1H2022,” it said.

The capital expenditure earmarked for the US is US$300 million for phase 1 and US$250 million for phase 2, totalling US$550 million, and for the UK, it is £50 million.

Supermax has also decided to enter into face mask manufacturing in Malaysia and Canada.

“This is to complement our existing global supply chain that the group has built over the years. We have started delivery of millions of masks to the government in Canada since early October 2020,” it said.

Supermax, which was one of the top gainers on Bursa Malaysia today, closed 57 sen or 6.19% higher at RM9.78, valuing the group at RM25.05 billion. Year to date, the counter has surged 1,297%.

Source: The Edge

https://www.theedgemarkets.com/article/ ... mes-rm790m
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Re: Supermax

Postby winston » Wed Oct 28, 2020 10:27 am

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1QFY21: Achieves another historical high

We deem 1QFY6/21 net profit of RM789.5m in line with our expectations (24.4% of our full-year forecast) but above Bloomberg consensus (40.7%).

SUCB announced plans to pursue a listing on the Singapore stock exchange. No further details were provided as plans are still in the initial stages.

Reiterate Add with an unchanged TP of RM13.20 (18.3x CY22F P/E).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... C68AC8392F
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Re: Supermax

Postby winston » Wed Oct 28, 2020 2:18 pm

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Supermax's share price fails to climb despite exponential earnings growth

by Tan Siew Mung

Supermax’s earnings figures beat Affin Hwang Capital analyst Ng Chi Hoong’s forecast, noting in his results review that the company’s net profit for the first quarter alone constituted 42% of his full-year forecast.

Against a backdrop of a resurgence of Covid-19 cases in many parts of the world, Ng raised his earnings per share (EPS) estimates for the financial year ending June 30, 2021 (FY21)-FY23 by 50.4%-61.7%, with higher assumptions of average selling prices (ASPs) of rubber gloves.

He expects Supermax’s EPS to shoot up to RM1.09 for FY21, but more than halved to 45.9 sen for FY22. The company’s EPS stood at 19.3 sen for FY20.

Despite the earnings upgrade, the analyst is cautiously optimistic. Ng, indeed, trimmed his target price (TP) marginally RM16.40 from RM16.50 previously, the reason being that he foresees weaker sentiments on the sector due to the news flow of availability of Covid-19 vaccines.

Ng believes that blended ASPs will continue to increase by 4% to 5% month-on-month (m-o-m) in FY21, before remaining stagnant in FY22.


Source: The Edge

https://www.theedgemarkets.com/node/538535
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Re: Supermax

Postby winston » Tue Nov 10, 2020 11:51 am

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Supermax Corporation (SUCB MK)
Outlook Remains Positive


Supermax’s prospects are intact amid rising ASP and lengthening delivery lead time.

Glove supply remains vastly inadequate, compounded in part by a shortage of NBR, of which Supermax has secured sufficient supply for its expansion.

Meanwhile, it aims to expand production into the US and UK upon the invitation of the governments.

This comes amid aims to localise some production of its critical personal protective equipment.

Maintain BUY with revised target price of RM12.10 as we resume coverage on Supermax.

Source: UOBKH

https://research.uobkayhian.com/content ... 27ac504a3a
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Re: Supermax

Postby winston » Tue Dec 08, 2020 4:13 pm

Glaring opportunity

by Koon Yew Yin

Supermax reported EPS of 30.58 sen for its 1st quarter ending September. Its previous quarter EPS was 15.29 sen.

It made 100% more than its previous quarter because the company could easily increase its selling price for its gloves during the pandemic.

Its 2nd quarter ending December its EPS should be more than 30.58 sen. Even if I assume that its 2nd quarter EPS is the same as its 1st quarter its earning for half year will be 61.2 sen.

It will announce its 2nd quarter result in mid-January 2021 which is about 5 weeks from now.

https://klse.i3investor.com/blogs/koonyewyinblog/
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