SUPERMX net profit triple jump

Company Profile
Supermax Corporation Berhad is an investment company engaged in manufacturing, distribution and marketing of medical and latex glove. Its products are exported to over 145 countries, such as US, Euro Union, Middle East, Asia and South pacific countries.

Financial Result
Compare to 1Q09, group revenue increase 14.6% to RM220.6, from RM192.4. Net profit saw a whopping triple jump, from RM19.7m same quarter preceding year to RM51.5m. Strong global demand coupled with the limited capacity expansion from major glove player has driven glove prices up. Strong revenue growth and cost saving from higher efficiency and productivity from improved processes and refurbished lines has push  the net profit margin to a high of 23%

Future Prospect
1. Global demand and consumption of rubber glove has been growing between 8%~10% per annum, no sign  of slowing down.
2. US, which already the largest consumer of rubber gloves(40% of global consumption), is expected to hit a new high when US Health Reform Bill implement. China has start talking about healthcare reform too.
3. Issues surrounding us lately about the concern of oversupply is unfounded. Non availability of natural gas supply to new plan and inability to deliver on time from support industries, show revoke our concern.
4. Increase in latex price will be neutralize with ringgit appreciation against USD. Glove maker can pass on cost increase to consumers by adjusting average selling price.


Technical Outlook
Chartwise, it still have room to drop with RM6.30 as support. However, stochastic and RSI show some reversal after a few days sell off. With the promising result announced today, there will be more upside to come. 

Stock Valuation
With today closing price RM6.90, it is trading at P/E 11.5x (EPS RM0.60 ttm).It is deemed attractive with more upside to come. Revaluation with P/E14x will give us target price of RM8.40, easy!. Don't forget the proposed 0.04TE for FY09 to be paid on 28/06/2010, subject to shareholder approval.

Overall
I think SUPERMX shareholder will restore their confident now, given a good 1Q10 result. As i said before, long term investor should take this opportunity to ACCUMULATE.

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ZHULIAN has another good quarter

1Q 2010 Financial Results

Compare to 1Q 09, company revenue increase 21% to RM86.3m from RM71.1. Net income jumped to RM24.9m compare to RM16.8m same quarter preceding year. It is a increase of 48%.

Immediate preceding quarter comparison shows that company revenue was RM0.9m slightly lower, mainly due to drop in sales overseas but offset by better local sales. Anyhow, net earning for the current quarter still able to match preceding quarter with RM24.9m.

Dividend of RM0.03 was announced, ex on 10th May 2010.

Technical Outlook
Chart wise, Zhulian uptrend is pretty stabe. I notice that every quarterly announcement will trigger another price rise. I think will be the same for the next few days.

Stock Valuation
I came out with EPS RM0.269(ttm), rather then using EPS for FY09. With today's closing of RM2.29, it is trading at P/E 8.5. It is worth to buy.

Overall
We has been assured with another promising quarter today. Zhulian is a very simple stock to play, just accumulate to let it growth.

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What's going on with Glove maker??

This morning, all glove maker take a sharp fall. Among the glovemakers which are in the klse top loser list are TOPGLOV, KOSSAN, SUPERMX, HARTA and LATEXX.

This come along after some re-rating report of this sector coming out. Link form TheEdgemalaysia

From my own perspective of view, glove maker will still remain profitable at least for this financial year. Price drop at this time just reflect some breathing space for them after the latest rally since 22th March. Here are some chart for SUPERMX and LATEXX.

SUPERMX chart shows a consistent wave all the time where each rally will be follow by some pull back. As this time, i can see support at RM6.30 follow by RM6.00. For long term investor, dont miss your chance at RM6.30.

LATEXX chart is pretty much like SUPERMX too. I do notice that its MACD has been stay calm for a while, RSI also been neutral. Its upside will be more significant if some good news start to flow in. RM3.80 is a save entry point, stop loss at RM3.70 if things doesn't come in our way.






Overall, long term investor should have a decent look on these stock. Don't miss the boat.

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A bit of research about MITRA

Company Profile
Mitrajaya is now a multi-national conglomerate with businesses in a diverse range of industries, among them, construction, property development, international projects, manufacturing as well as healthcare.This five business segments operating in two principal geographical areas.
In Malaysia ~ civil engineering, building and road construction works, property development and healthcare.
In South Africa, it involved in civil engineering, construction works, property development and golf management.

Financial Result

For 4Q09, Group’s revenue has increased substantially by 235% to RM156m as compared to RM46.5m in the preceding year’s corresponding quarter. It was mainly derived from higher revenue recognition from construction division from both on-going and completed projects. Better sales performance from Group's property projects has also contributed higher revenue in the current quarter .

On the back of higher revenue, the Group has recorded a significant high profit before tax of RM25.4m in the current quarter as compared to a profit of RM0.7m in the preceding year’s corresponding quarter.

For financial year 09, net income of RM41m can be translate into EPS of RM0.33.

Technical Outlook
Stochastic crossover at below 20% mainly due to the sharp rise yesterday. Still waiting for MACD for a safer entry into this stock. Stop loss at RM1.00.

Stock Valuation
With closing price RM1.10, it is trading at P/E 3.3. Seems to be very attractive for me.

Overall
I'm not sure if high profit margin from last two quarter will keep going in future. If it does, i think MITRA is a FIRM BUY.

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