LATEXX has been wandering on top horizontal line of RM2.82 for the past few days. At 3.15pm, its share price push to 52-week high of RM2.93, this further confirm the formation of Ascending Triangle. RM2.82 will be the immediate support with a target price of RM3.66.
During this Christmas holiday, i keep thinking what i want in coming year. At last, i come out with my own motto " Growth, for the future ". This are a few target to be achieve....
FY 31/10/09
Financial Result
For the 4Q ending 31/10/09, Adventa recorded 15% improved in revenue to RM74.75m. PBT was 48% better off but net profit down 1% to RM5.38m, compared to same quarter last year. On y-o-y basis, Revenue rose 52% to RM282.87. Net profit also saw a 24% increase from RM13.58m last year, which convert into EPS 11.72sen.
Stock Valuation
With P/E 24X (EPS 11.32sen, closing 2.83) Adventa is bit expensive. To compare with other player in glove sector, they are trading at average P/E 14X (ttm EPS).
Technical Outlook
Alex Lu had tip a cup-with-handle breakout which is perfectly form, and beautiful completed(see here) . It reach a high of RM3.02 yesterday, sales pressure drag it back to RM2.83 today closing. Stochastic start to show some retrenchment.
Future Prospect
TOPGLOV reported earnings results for the first quarter ended 30/11/09.Its net profit almost doubled to MYR 66.5 m on cost saving measures and aggressive marketing strategies. With installed capacity of 31.5 b pieces of gloves a year, the company continues to build on its size. Factory 20, which is located in Klang, Malaysia, has commenced the installation of 16 new and advanced glove production lines and is targeted to be completed by February 2010. As for Factory 21, it is being built and is expected to start operation towards the end of 2010.
KOSSAN got the 2nd highest revenue in the industry with RM855.1m. However, its average net profit margin 6.8% is poor.Means that for them to growth bottom line, they need to produce and sell more glove. Consensus for FY09 suggest that is EPS will grow RM0.06 to RM0.42. Therefore, more upside for its share price with target RM5.90 (based on Consensus x current P/E).
SUPERMX net profit up quater to qauter for the last 4 quater. Revenue keeps ascending from 284.7m(FY 06) to 811.8m(FY09). Surging global glove demand, fuelled by the influenza A (H1N1) pandemic will keep pushing its revenue, where global glove demand increase steadily at 8%~10% a year.By focusing to higher margin products and lowered operating costs, its net profit margin stay at average of 11% for TTM. P/E of 12.6x is the most attractive among the others. Price-to-book of 2.1x also suggest that the price is fair. The company, which has a policy of returning 20% of net profit to shareholders, aims to improve this in 2010. It will return whatever it makes above its recently revised net profit target of RM 117 m. Means RM10m will be return to shareholder if the company posts RM127 m in net profit, RM 10 m will be returned to shareholders. The special dividend will include extraordinary gains, which estimates at about RM15 m currently. Annual Revenue is expected to reach RM1.5b by FY11, currently the company keeps increase its production capacity by replace or build new production lines.
HARTA announced earnings results for the second quarter ended 30/9/09. The company reported pre-taxprofit of RM 41 m, some 92% higher than the same period of last year. Revenue for the quarter was higher at RM 135 m compared with RM 111 m previously. Net assets per share increased to 122 sen as at the end of the quarter. However, its price-to-book 5.3x is still highest among others. Pro side shows HARTA is most profitable with its net margin of 22.37%
LATEXX stands out to me this FY, where its revenue and net profit keeps improving. TTM, its net profit is RM41.4m, only RM16m less then KOSSAN. Consider its revenue is only RM295m, i think this company is a rising star. Net profit margin of 14% shows me that they run efficiently, 27% ROE also support this. Estimate EPS of RM0.06 for the next quater should be achievable. That would bring FY09 EPS to RM0.24, P/E 12x which is attractive to me. To be save current ratio still need to be watch closely, where it is my only concern.
ADVENTA due to announce Result quater ending 30/10/09. After positive result from other glove maker, i expect ADVENTA to give us some good news too. With current P/E of 23.6x, it is overprice. Or this indicate another excellent result from them? How good is good? Using average P/E of 18x for glove maker, i expect EPS of RM0.16(ttm). Which means the 30/10/09 EPS has to be RM0.08. Any less then that would be consider a SELL.
For a conclusion, glove sector is the stock to pick in current economy situation. I do fancy SUPERMX and LATEXX as my top pick.
Gold investment...sounds simple ? Let's have a look then..
Why you want to invest in gold?
Protect yourself against inflation, deflation, stock market weakness and potential currency problems -- in other words, to hedge financial uncertainties.
When should i buy gold?
"When you need it". We cannot approach gold the way we approach other investment. TIMING is not important.Is the matter of do you need to own gold. Buy when prices are low, sell for high. Common mistake made by most is to wait the price to drop.Set yourself an aim to get in at 10% of bottom,to give you better return.Dont wait too long as you will miss the opportunity.
What influnce the gold price?
1. Supply and demand, just like anything else.When people want to buy gold,its price rise.Growing prosperity of the major Asian countries, particularly
India and China has well support gold price.People has been accumulate bullion or coins, as national or personal reserve.
2. Changes in sentiment.
a.Economic situation ~ Bull Market >price drop; Bear Market >price rise. During economic downturn, investor sell their investment and lock their money in gold, as gold can retains it value over very long term. In contrast, smart investor will sell gold, invest in people and business get back again in the dynamic creation of wealth.
b.Suspect Currency ~ drive up gold price.
When people dont fell confident with their currency, they convert it to gold for devaluation protection.
c.National crisis ~ lead to prise rise.
People fear that their assets may be seized and that the currency may become worthless. They see gold as a solid asset which will always buy anything. Thus in times of great uncertainty, particularly when war is feared, the demand for gold rises.
In the sum of all, just remember " Bad news !! But not for Gold :) "
Company Profile
MAMEE is a household brand nowaday since it incorporate in 1971.MAMEE accompany most malaysians childhood where we will not forget, and now is in more than 70 countries from new zealand to canada. Its has 5 main product range :
1.Instant Noodle > MAMEE
2.Snacks > DOUBLE DECKER, MAMEE, MISTER POTATO, CORNTOZ...
3.Chilled > NUTRIGEN
4.Confectionery > NICOLET
5.Beverages > CHEERS
Financial Result
For the last 5 yrs, MAMEE has been able to grow revenue consistently from RM277m(FY 04) to RM396m(FY08). Its EPS also steady at RM0.21~RM0.35, which translate to P/E of 6.2x~10.3x. FY09 9months sees a significant improvement where RM33.33 net profit recorded, highest for the last 6 yrs. P/Margin of 14% tells us that company has better control of operating expenses.Company net working capital also stood at RM1.02/share, which is very healthy.
Technical Outlook
Technical chat shows MAMEE is in uptrend. 
Stock Valuation
With P/E of 7.4x, MAMEE is very attractive. EPS of RM0.30 in FY09 is achievable. TP RM2.40(EPS x 8.0x).With an average of 10% ROE, it is a plus. Any chance to explore into new market or product will push the revenue, so do the price further up.
Overall
Look at the positive 5 yrs track record, MAMEE is a very defensive stock. And very potential to become growth stock as well, most importantly it is organic growth. With its generous dividend policy and efficient management, just BUY and hold.
Company Profile
London Biscuits Berhad is engaged in the manufacturing and trading of confectionery and other related foodstuffs.
Financial Result
LONBISC net profit up 27% q-o-q from RM2.49mil to RM3.16mil. Revenue grow 20% from RM39mil to RM46.6mil. Current quarter result within my expectation. 3sen dividend for FY09 has been a announced, where it is lower then i expected.However, we understand that company need to keep some cash for hire-purchase and term loan repayment. 
Company Valuation
Based on its trading price of RM1.04, LONBISC has P/E of 5.2x, which is fairly cheap.
Overall
LONBISC is very consistent in its net profit for the pass 5 years. Although its Debt to capital is about 0.51,it should be able to repay the debt when company continue making profit. Hold
Company Profile
SKP Resources Bhd., an investment holding company, engages in the manufacture and sale of plastic parts and components for electronic and electrical products in Malaysia. It offers plastic parts and components for computer, video, audio, and related accessories.Client include HP,Dyson,Sharp,Pioneer...
Financial Result
For the past 4 FY, SKPRES EPS has been consistent with average of RM0.022 apart from RM0.005 on FY09.Which along with economic downturn and higher cost of goods sold. However, FY10 year to date result shows some recovery, with EPS stand at RM0.013. As it already recorded 6 months net income of RM6.8mil, twice as much as net profit of FY09.
Company Valuation
With net working capital of RM0.10 ps, it is very cheap(26/11/09 closing = RM0.16) That means we only pay RM0.06 ps for its fix assets. Short term borrowing has been reduce to RM213,000 as we can simply ignore.
My View
By only paying RM0.06 ps for this stock, it is a bargain. 3 years of EPS RM0.02 will pay back your investment. Electronic products demand shows some recovery as consumers start spending again.
Company Profile
LTKM Berhad through its subsidiaries, is engaged in operation of a poultry farm for the production and sale of chicken eggs, chickens and organic fertilizers, and extraction and trading of sand.
Financial Result
LTKM registered a higher PBT of RM6.89m as compare to RM2.54m in preceding quarter.Revenue was marginally down, but net profit soar 188% q-o-q from RM1.99m to RM5.74m. This is due to lower costs of major raw material and government incentives.
y-o-y, we can see that current assets keep improving while total liabilities dropping.
Stock Valuation
Based on FY09 EPS of RM0.22, LTKM has a P/E of 5.5x.(26/11/09 closing RM1.22)Which is fairly attractive. FY10 outlook is good with a consensus EPS of RM0.33.TP RM1.80, based on 5.5x consensus EPS. With 8sen dividend discount(divided is fairly consistent for the past 5 years)
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