Hi guys,
This bull run year for Gloves is as exciting as Last Year's Bull Run Time last Year when OGSE gave us gains of 100% to 500% from Uzma, Carimin (currymee), Dayang, Naim & Penergy
The CATALYST for OGSE was Petronas pouring in Rm30 Billions for Upstream Capex
The CATALYST FOR GLOVES NOW COMES FROM WORLD MEDICAL EMERGENCY DUE TO WORLD GOVERNMENTS, WORLD HOSPITALS BUYING UP GLOVES LIKE NEVER BEFORE
This is the Reason Why We Are Bullish as This Is The Thematic Upturn of Glove Demand as Well as Its Material
The Production of Gloves as we know will be IMPOSSIBLE WITHOUT THESE 2
1) GLOVE CHEMICALS LIKE NITRILE AND LATEX LIQUID
2) HARH FORMERS OR CERAMIC HAND MOLD
See again the glove production line Very Very Carefully
https://www.youtube.com/watch?v=A9PMs_N33fU
To make rubber Gloves there Must BE CERAMIC GLOVE HANDS (LOTS OF THEM ON BOTH SIDES!)
And the Latex by which CERAMIC GLOVE HANDS DIP IN TO GET IT COVER WITH A COAT OF LATEX TO FORM INTO GLOVES
SO THE INCREASE OF GLOVE SALES WILL RESULT IN GLOVE EXPANSION WHICH LEAD TO MORE USE OF GLOVE HAND FORMERS OR MOLD
Now Most Glove Stocks Have Powered Up
ES_CERAMIC REMAINS A LAGGARD
While many Glove Stocks have reached New High and Some Even Broken all Time Record ES_CERAMIC iat 35.5 sen is still far below its 2016/7 high of 63 sen
Calvin being a Bargain Value Hunter Is Happy to Highlight the Great POTENTIAL of ES_CERAMIC
Now last Friday the result came in short. As a result there was a sell down
But after STUDYING IT DEEPER CALVIN THINKS THERE IS AN ANSWER
How?
We know that Year end Christmas Plus Chinese New Year Months have many off days
So there will less days for Production
So to Compare That Weak Quarter to the Quarter before that does not give an accurate picture
We should compare it with the Corresponding Period of Year End 2018 instead
So let's take a closer look
SUMMARY OF KEY FINANCIAL INFORMATION
|
INDIVIDUAL PERIOD
|
CUMULATIVE PERIOD
|
||||
CURRENT YEAR QUARTER
|
PRECEDING YEAR
CORRESPONDING QUARTER |
CURRENT YEAR TO DATE
|
PRECEDING YEAR
CORRESPONDING PERIOD |
||
29 Feb 2020
|
28 Feb 2019
|
29 Feb 2020
|
28 Feb 2019
|
||
$$'000
|
$$'000
|
$$'000
|
$$'000
|
||
| 1 | Revenue |
8,950
|
8,326
|
26,651
|
23,103
|
| 2 | Profit/(loss) before tax |
653
|
-582
|
2,696
|
-89
|
| 3 | Profit/(loss) for the period |
653
|
-583
|
2,696
|
-89
|
| 4 | Profit/(loss) attributable to ordinary equity holders of the parent |
653
|
-583
|
2,696
|
-89
|
| 5 | Basic earnings/(loss) per share (Subunit) |
0.32
|
-0.28
|
1.31
|
-0.04
|
| 6 | Proposed/Declared dividend per share (Subunit) |
0.00
|
0.00
|
0.00
|
0.00
|
AS AT END OF CURRENT QUARTER
|
AS AT PRECEDING FINANCIAL YEAR END
|
||||
| 7 | Net assets per share attributable to ordinary equity holders of the parent ($$) |
0.2600
|
0.2500
|
||
Above is the Qtr ending on 29 Feb 2020
Below is the Qtr ending on 29 Feb 2019 (Exactly One Year apart)
SUMMARY OF KEY FINANCIAL INFORMATION
|
INDIVIDUAL PERIOD
|
CUMULATIVE PERIOD
|
||||
CURRENT YEAR QUARTER
|
PRECEDING YEAR
CORRESPONDING QUARTER |
CURRENT YEAR TO DATE
|
PRECEDING YEAR
CORRESPONDING PERIOD |
||
28 Feb 2019
|
28 Feb 2018
|
28 Feb 2019
|
28 Feb 2018
|
||
$$'000
|
$$'000
|
$$'000
|
$$'000
|
||
| 1 | Revenue |
8,326
|
6,768
|
23,103
|
19,284
|
| 2 | Profit/(loss) before tax |
-582
|
71
|
-89
|
884
|
| 3 | Profit/(loss) for the period |
-583
|
71
|
-89
|
883
|
| 4 | Profit/(loss) attributable to ordinary equity holders of the parent |
-583
|
71
|
-89
|
883
|
| 5 | Basic earnings/(loss) per share (Subunit) |
-0.28
|
0.03
|
-0.04
|
0.43
|
| 6 | Proposed/Declared dividend per share (Subunit) |
0.00
|
0.00
|
0.00
|
0.00
|
AS AT END OF CURRENT QUARTER
|
AS AT PRECEDING FINANCIAL YEAR END
|
||||
| 7 | Net assets per share attributable to ordinary equity holders of the parent ($$) |
0.2300
|
0.2400
|
||
Now look at the Figures more closely
1) REVENUE
Revenue for 29/2/2019 was Rm 8,326,000
Revenue for 29/2/2020 was Rm8,950.000
The difference?
It's up by 7.5%
2) PROFIT OR LOSS STATEMENT
There was a loss of -rm583,000 then
There is a gain of Rm653,000 now
The difference is a nice 212% improvement
3) NAV (NET ASSET VALUE)
It was 23 sen then
Is is 26 sen now
Or NTA has gone up by 13%
SO FROM ALL 3 ASPECTS ES_CERAMIC HAS DONE WELL IN REVENUE GROWTH, PROFIT GROWTH & NET ASSET GROWTH
After the bad Qtr of 29/2/2019 the Next 3 Qtrs of Es_Ceramic were excellent
They Register RM875,000 or 0.4 sen profit
Then Rm1,006,000 or 0.5 sen profit
And Rm1,037,00 or 0.5 sen profit
SO WE SEE THE TRUE PICTURE NOW
IF THE NEXT 3 QTRS OF 2019 DID WELL WITHOUT THE IMPETUS OF COVID 19
WHAT WILL BE THIS YEAR WHEN COVID 19 HAS CAUSED MANY MANY GLOVE ENTITIES TO RAM UP PRODUCTION BOTH IN MALAYSIA AND THAILAND AND SINGAPORE FROM WHICH ES_CERAMIC HAS CAPTURED THE BIGGER SHARE OF THE HAND CERAMIC FORMER/MOLD?
TO CALVIN THIS WILL BE A SUPERB YEAR NOT ONLY FOR GLOVES BUT ALSO FOR GLOVE FORMER/HAND MOLD LIKE ES_CERAMIC
Best regards
Calvin Tan Research
Please buy or sell after doing your own due diligence. In doubt please consult your remisier, accountant or fund manager
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-05-03-story-h1506878521-ES_CERAMIC_The_Glove_Laggard_That_Will_Perform_Well_in_This_Glove_Bull_.jsp
