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Bursa Master

Author: BURSAMASTER   |   Latest post: Sat, 4 Jul 2020, 3:41 PM

 

WOW !!! THIS CO HAS STARTED SELLING THEIR OWN BRAND SANITIZERS IN JOHOR AREA !!!

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WOW !!! THIS CO HAS STARTED SELLING THEIR OWN BRAND SANITIZERS IN JOHOR AREA !!!

Hello to all readers out there. Recently, a lot of healthcare counters have hit new highs. Even those venture into healthcare sector are moving very high (some just writing MoU and JV but never come up with actual product yet).

An acquaintance of mine, in Johor, had highlighted that he came across this SANITIZER in Johor area, which I am surprised about since there had yet been any official announcement from the company, although the product had already starting to be distributed in Johor (factory located in Johor).

Having said the above, the stock which I'd like to talk about today The company I am talking about is SERSOL BERHAD (SERSOL - Stock Code 0055, ACE Market, Industrial Products & Services - Chemicals)

BASIC INFORMATION ABOUT SERSOL

SERSOL is a company involved in high quality coating solutions related to buildings, furniture, electrical and electronic products. 

They have 3 subsidiaries, namely Multi Square Sdn Bhd, Sersol Marketing Sdn Bhd and Multi Square Coating (Thailand) Co Ltd.

Market Capital : RM 26.92 million

Shares Float : 215.35 million

WHAT'S THE STORY ???

So, a friend of mine had informed me that there is a new hand sanitizer product available in Johor market. The image as below:

If we zoom in further in the bottom left area:

It says that the sanitizer is manufactured by Multi Square Sdn Bhd, which is a subsidiary of SERSOL BERHAD. Currently, the product is mainly available in Johor as this is where their factory is located.

A few info was shared to me regarding this sanitizer:

1. HAND SANITIZER IS MIXED BASED ON W.H.O. RECOMMENDED FORMULA

Based on the info provided, the sanitizer is mixed based on W.H.O recommended formula as circled in image below:


2. OBTAINED APPROVAL FROM RELEVANT AUTHORITIES AND STARTED TO BE DISTRIBUTED ON 11 MAY 2020

The product had obtained approval from relevant authorities and now registered under the National Pharmaceutical Regulatory Agency.

Based on information provided to me, the product Safety Data Sheet (SDS) was launched on 11th May 2020 together with the Distributorship Notes.

For those who are interested to enquire about distributorship can directly call the company line as below:

3. WHY IS THERE NO OFFICIAL ANNOUNCEMENT YET FROM SERSOL ON THIS ???

Well, I am not sure about this matter either. There can only be a few possibilities which I could think of that SERSOL has not yet announced this officially:

i. They want to see how the market demand is for the product before making official launching

ii. They are not ready for nationwide distribution

iii. They are waiting the right time to announce as right now country is still in CMCO (Conditional Movement Control Order) due to COVID19

However, despite the above, I feel that it would be better if the company made an official announcement with regards to this venture, to be fair to its existing shareholders, and also for other potential investors out there looking to get a piece of the healthcare boom.

4. MAJORITY SHAREHOLDER MR TOH HONG CHYE ACCUMULATING SHARES FROM 9 - 20 MARCH 2020  

As you can see below in the image, Mr Toh Hong Chye, who is Executive Chairman & major shareholder of SERSOL, had added a total of 3,328,800 shares from 9-20 March 2020. 

This brings his total shareholdings to roughly 50.3 million or 23.4% of the total float shares.


5. TECHNICAL ANALYSIS

Refer below the basic price and volume chart with key EMAs which I like to use to determine basic trend. A few observations:

i. Price of SERSOL at the closing (12.5c), is already higher thatn EMA365 of 10c, which indicates a bullish momentum ahead

ii. Earlier, it was mentioned that the product safety sheet and distributor notes was announced on 11/5/2020. We see that big volumes had entered the stock on 13-14 May 2020, when the price hit a high of 13c

iii. Since hitting recent high, the price had retraced, however we see that minimal volumes had exited indicating strong hands are holding on to higher prices in future

iv. With the recent healthcare boom in other stocks (even with no products), the possibilities for SERSOL are endless (possible to break 20c in the mid term)

CONCLUSION

Considering all the above, I opine that current price for SERSOL is attractive due to below:

i) Manufacturing and distribution of their own sanitizers had started in Johor state

ii) Sanitizer follows WHO recommended formula and has obtained local authorities approval for distribution

iii) No official announcement yet from SERSOL

iv) Chairman added 3.3 mil shares in March 2020

v) TA shows stock already trading above key EMAs especially EMA 365, indicating long term bullish direction, with significant volumes entering this stock in the recent term after the product was distributed into market

LET’S SEE HOW THE SHARE PRICE MOVEMENT IN THE NEAR FUTURE FORBEARING ANY GOOD CORPORATE NEWS.

Disclaimer : The above opinion is never intended to be a BUY CALL whatsoever. I am sharing my observations ONLY based on fundamental; past history; current trading pattern; charts etc. Please make your own informed decision before buying this share or whatever share for that matter.

BURSAMASTER

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Labels: SERSOL

Related Stocks

Chart Stock Name Last Change Volume 
SERSOL 0.125 0.00 (0.00%)

  Investhor likes this.
 
abang_misai hehe. kajian secara gila-gila
27/05/2020 8:57 PM
calvintaneng Good

Now so many are rushing to start sanitizer factories

Only 2 main company have tank farms

Nylex and Hexza supply ethanol for sanitizers

Hexza already crossed rm1. 00

Matter of time Nylex will also cross Rm1. 00
27/05/2020 9:09 PM
m_faiza1 Nexgram as well join healthcare Covid mania. Not in radar?
27/05/2020 9:33 PM
ccharliie Sanitizers are convenient to use outside but not at home. Demand is unlike other PPE which have no other alternatives
28/05/2020 11:25 AM


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