Date : 14 April 2020
Lets be Part Of Us! Kindly go to www.kimstockwatch.com for more details.
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SUPERMAX CORPORATION BERHAD
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Target Price :
TP1 :RM2.00 / TP2 :RM2.30 / TP3 :RM3.50
Warrant : SUPERMX-C76
On target short-term for TP2 ( 0.10 cents +++)
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LETS SEE THE P/E 4 BEST GLOVE MAKERS
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TOPGLOVE - TTM PE of 43.63 times.
HARTA - TTM PE of 61.56 times.
KOSSAN - TTM PE of 29.59 times.
SUPERMX - TTM PE of 21.33 times.
So from what we shown above, Supermax is the lowest P/E for now. The decision is yours. Our top picks among the sector is "Rubber / Gloves".
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WHY SUPERMAX?
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1 - Trading at an unjustified 40% discount
2 - Vey Higher demand / Ramped-up restocking activities as the current COVID-19 outbreak
3 - Beneficiary of favourable USD/MYR forex trend / Weaker Ringgit against USD
4 - Labour Shortage Eases/ Expansion to Continue
5 - Among Gloves stock still lower P/E
6 - World's hospitals are running out of vital rubber gloves
No doubt all glove makers rising to a record high on expectation that the Covid-19 pandemic, which has killed more than 100,000 people globally and 1.9 millions peoples infected, will result in higher demand for rubber gloves as the healthcare sector contends with the rising number of infected individuals.
Glove makers across the board have seen a surge in demand from both developed and developing countries alike to combat the spread of Covid-19. CGS-CIMB noted that the Malaysia Rubber Glove Manufacturers Association viewed that global demand for rubber gloves could reach 345 billion pieces in 2020, from the 298 billion pieces last year. This indicates a growth of 15.8% YOY in 2020. Vs. average annual growth of 6-8% in the past 10 years.
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LETS SEE FBM KLCI INDEX
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Our Index FBM KLCI lost 12.26 points yesterday or 0.9% to finish at 1,357.5, as the government announced an extension of movement control order until the end of April.
Chart-wise, the index remains below its key SMAs. Nonetheless, coupled with a bullish MACD signal, we may see a continuation of recent intermittent technical rebounds from an oversold position. On the chart, our support levels remain at 1,360 (SPT1) and 1,310 (SPT2).
This comes as the benchmark index, which is hovering just slightly under our first support level , may continue to ride on the technical rebound towards 1,400 (R1). Should the momentum persist, our index could attempt to close the gap on the chart (that was opened in mid-March) to test the second resistance level of 1,420 (R2).
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WHAT KIM SAY?
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"No words. No press. No news from Management. No news from Key Person. What do you think? Big News will show up! Wait and See!"
You are advised to watch very closely on month APRIL. It will go blow slowly and fly very fast and high! Not to worry if it keep volatile / yo-yo pattern because in the end, it will stay above 2.00 and play 3.00 range this year. So take a seat tomorrow onward till end this month It pretty sure a big-boom! and you will be big-reward!
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RELATED ARTICLES
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https://www.enanyang.my/?p=1391074
https://www.malaymail.com/amp/news/malaysia/2020/03/25/us-lifts-ban-on-malaysian-glove-maker-wrp-asia-amid-shortage/1849941
https://www.malaymail.com/news/malaysia/2020/03/29/malaysias-rubber-a-blessed-word-during-pandemic/1851325
https://www.bbc.com/news/uk-england-cambridgeshire-52063563
https://www.malaysiakini.com/news/517475
http://www.klsescreener.com/v2/news/view/657111
https://www.theedgemarkets.com/article/now-worlds-hospitals-are-running-out-vital-rubber-gloves#.XnxOM_m639Y.facebook
https://www.theedgemarkets.com/article/rubber-licence-holders-must-operate-during-mco-period-—-mpic?type=corporate
https://www.theedgemarkets.com/article/glovemakers-malaysia-worlds-largest-medic-glove-producer-warn-chronic-shortage-if-full-0?type=malaysia
Good luck and stay tuned!
Only the rubber sectors will have a big jump and bright prospect for now!
-= Kim's Group =-
Lets be Part Of Us! Kindly go to www.kimstockwatch.com for more details.
https://klse.i3investor.com/blogs/spartan/2020-04-14-story-h1505955066-SUPERMX_Low_P_E_Get_ready_for_Glove_Makers_to_surge_100_above_this_2020.jsp
