ESCERAM (0100) ES_CERAMIC: WILL YEAR 2020 BE AN EXTRAORDINARY YEAR FOR ES_CERAMIC? Calvin Tan Research

Hi guys
This Year of 2020 Will Be GLOVE BULL RUN YEAR FOR MALAYSA  AND ES_CERAMIC WILL DO EXCEPTIONALLY WELL ON THESE FACTORS

1) RUBBEREX GOING TO INCREASE BY ANOTHER 1 BILLION EXAMINATION GLOVES

Rubberex to register supernormal 3-year forward earnings CAGR of 30%, says RHB

Edgedaily

-A+A

 

KUALA LUMPUR (April 28): RHB Investment Bank Bhd research has initiated coverage on Rubberex Corp Bhd at RM1.29 with a “Buy” rating and target price (TP) of RM1.68 which implies 23.5x FY21F P/E, a 24% discount to sector average reflected by its smaller market cap and liquidity.

In a note today, the research house said it expects Rubberex to register supernormal 3-year forward earnings CAGR of 30%.

“This is supported by expansion in capacity, which should double in the next 3-6 months and triple by end-FY22F.

VERY GOOD. TE DOUBLING OF EXPANSION MEANS MORE NEED OF HAND FORMERS

2) SUPERMAX ALSO EXPANDING

Supermax buying Klang land to expand production capacity

KUALA LUMPUR (March 13): Supermax Corp Bhd is buying a 5-acre piece of industrial land in Meru, Klang, Selangor for RM20 million for future expansion of its manufacturing capacity.

The rubber glove maker said the land is located next to its existing manufacturing plant No. 12, which will facilitate management control and operational synergies and efficiency.

"The plan is to construct a new manufacturing plant No. 16 over the next few years, which will increase the group's production capacity by about 4.5 billion pieces of gloves per year

An Increase by 4.5 Billion Gloves will need how many more Ceramic Hand Molds?

3) TOP GLOVES IN EXPANSION

Top Glove allocates RM600m capex for FY20

SETIA ALAM (Oct 4): The world's largest rubber glove manufacturer, Top Glove Corp Bhd, has earmarked RM600 million as capital expenditure (capex) for the financial year ending Aug 31, 2020 (FY20).

The glove manufacturer spent RM461.77 million in capex in FY18 while for the just-ended FY19, it allocated RM632.17 million.

Speaking at Top Glove's fourth quarter results briefing today, its chairman Tan Sri Dr Lim Wee Chai said the capex will be used for automation, building new factories to expand production capacity, as well as merger and acquisition.

For the new capacity expansion, the bulk of which or up to 80% mainly is for nitrile gloves, while the remaining is for vinyl and latex gloves, according to Lim.

"Today we produce more than 30 billion pieces of nitrile gloves per year, which is about 50% of our total annual gloves production. We can almost say we are the largest nitrile gloves producer, in terms of capacity and also production," he added.

By Dec 2020, Top Glove is projected to have 38 factories with 876 production lines, and a production capacity of 84.1 billion pieces per annum.

This represents an increase of 31.61% or 20.2 billion compared from the current production capacity of 63.9 billion pieces per annum. The group currently had 33 glove factories with 682 production lines.

The nitrile gloves contributed the bulk or 46% of its total revenue in FY19, followed by latex powdered gloves at 21%, latex powder-free gloves 18%, surgical gloves 12%, vinyl gloves 2% and cast polyethylene (CPE) and thermoplastic elastomer (TPE) gloves at 1%.

On Top Glove's prospect, Lim is confident of a bright future and chalking up double-digit growth, despite a competitive environment.

MANY OTHERS IN MALAYSIA ARE EXPANDING AS WELL IN UNISON AND COLLECTIVELY

BUT ES_CERAMIC NOT ONLY BENEFIT FROM GLOVE PRODUCTION LINES IN MALAYSIA
THAILAND GLOVE ALSO IN EXPANSION

SEE
HEALTH CARE

Top Thai medical gloves maker files IPO as pandemic spurs demand

Sri Trang Gloves aims to ramp up production capacity to 32bn pieces a year

APORNRATH PHOONPHONGPHIPHAT, Nikkei staff writer APRIL 25, 2020 13:53 JST

Sri Trang Gloves is aiming to be among the world's top three producers of rubber gloves over the next few years, challenging the world's biggest producer, Malaysia-based Top Gloves. 

BANGKOK -- Sri Trang Gloves Thailand, the country's biggest producer of medical gloves, has filed for an initial public offering on the Stock Exchange of Thailand to raise funds to increase production capacity, with the company seeing substantially increased demand for its products as a result of the new coronavirus pandemic.

To continue reading, 

WHY GLOVE EXPANSION IN THAILAND GOOD FOR ES_CERAMIC

For that let's take a look at this (for i3 forum)

Business Background

ES Ceramics Technology Bhd is an investment holding company. Through its holding, the company manufactures and distributes ceramic hand formers. Its products offerings include examination formers, surgical formers, household formers, and breatings bag and balloon. Its formers are for continuous industrial use under heavy-duty conditions, to withstand the complex processes involving heat and chemicals to produce gloves. ES Ceramics operates geographically in Malaysia and Thailand and earns the majority of the revenue from Thailand.

SO THE MOMENTUM OF COMBINED SUPER GROWTH OF ALL GLOVE COMPANIES WILL RAMP UP DEMAND FOR ES_CERAMIC HAND FORMERS OR CERAMIC HAND MOLD LIKE NEVER BEFORE

SO WILL ES_CERAMIC JOIN TE GLOVE BULL RUN?

YET TO BE SEEN

BEST REGARDS

Calvin Tan Research

Please buy/sell after doing your own due diligence. In doubt please consult your remisier/ fund manager

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-04-28-story-h1506167326-ES_CERAMIC_WILL_YEAR_2020_BE_AN_EXTRAORDINARY_YEAR_FOR_ES_CERAMIC_Calvi.jsp