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THE INVESTMENT APPROACH OF CALVIN TAN

Author: calvintaneng   |   Latest post: Fri, 27 Nov 2020, 1:05 AM

 

LUXCHEM RESULT VERSUS HARTALEGA RESULT (COMPARE & CONTRAST) Calvin Tan Research

Author:   |    Publish date:


Hi guys

Today both Luxchem & Hartalega released their great results this afternoon

 

Let's see

 

HARTALEGA

 

SUMMARY OF KEY FINANCIAL INFORMATION
30 Sep 2020

 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
30 Sep 2020
30 Sep 2019
30 Sep 2020
30 Sep 2019
$$'000
$$'000
$$'000
$$'000
1 Revenue
1,346,016
709,424
2,266,103
1,349,525
2 Profit/(loss) before tax
682,961
137,327
955,780
258,981
3 Profit/(loss) for the period
549,698
104,206
770,758
198,460
4 Profit/(loss) attributable to ordinary equity holders of the parent
544,958
103,867
764,677
197,930
5 Basic earnings/(loss) per share (Subunit)
15.95
3.09
22.38
5.90
6 Proposed/Declared dividend per share (Subunit)
3.85
1.80
5.95
3.70
   
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 ($$)
0.9900
0.7500
 

 

15.95 sen

Annualized 15.95 x 4 = 63.8 sen 

If we assign P/E 30

Then 63.8 x 30 = Rm19.14

At current closing price Rm18.36 Hartalega upside is only 78 sen or 4% more to reach full value

 

 

Luxchem

SUMMARY OF KEY FINANCIAL INFORMATION
30 Sep 2020

 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
30 Sep 2020
30 Sep 2019
30 Sep 2020
30 Sep 2019
$$'000
$$'000
$$'000
$$'000
1 Revenue
191,260
187,488
506,033
578,325
2 Profit/(loss) before tax
18,847
11,352
42,259
37,365
3 Profit/(loss) for the period
14,169
8,243
30,792
27,538
4 Profit/(loss) attributable to ordinary equity holders of the parent
14,204
8,583
31,758
28,076
5 Basic earnings/(loss) per share (Subunit)
1.59
0.96
3.55
3.20
6 Proposed/Declared dividend per share (Subunit)
0.00
0.00
1.00
1.00
   
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 ($$)
0.3600
0.330

 

1.59 sen

Annualized 1.59 x 4 = 6.36 sen

If P/E 30 then 6.36 x 30 = Rm1.90

Currect price 89.5 sen

So Rm1.05 or 117% more to reach Rm1.90

 

From these figures we SEE that Hartalega is almost fully valued while Luxchem still undervalue

 

And do you know that Topglove & Hartalega are Top 2 Biggest Customers of Luxchem Nitrile Glove Chemicals?

 

 

Warm regards

Calvin Tan Research

Singapore

 

Disclaimer

All information provided here should be treated for informational purposes only. It is solely reflecting author's personal views and the author should not be held liable for any actions taken in reliance on information contained herein.

OKOK

 

aikinlai I dun think can uae PE 30 for luxchem.
27/10/2020 1:55 PM


SEE HOW PEOPLE DON'T WANT TO ASSIGN P/E TO LUXCHEM & GLOVES NOW?

NO WONDER AFTER CAREPLUS GOOD RESULT OUT PRICES STILL DID NOT MOVE MUCH

HMMM?

ARE ALL GLOVES NOW OVERVALUED?

THEN HOW NOW?

YESSSS!!!

GO BUY JTIASA!!!

JTIASA IF IMPAIRMENTS NOT INCLUDED HAS A P/E OF LESS THAN 3

JAYA TIASA = GIANT TREASURE

aikinlai I dun think can uae PE 30 for luxchem.
27/10/2020 1:55 PM
Share this

  2 people like this.
 
27/10/2020 1:53 PM
aikinlai I dun think can uae PE 30 for luxchem.
27/10/2020 1:55 PM
Booyeah sleeping meh.. assign pe like finding gf so easy want assign how much? zzzz
27/10/2020 2:00 PM
calvintaneng YJInvest likes this.

TYVM
27/10/2020 2:15 PM
Cloudboy calvin ....should be pe 50 la.....30 ..so little only
27/10/2020 2:17 PM
calvintaneng Cloudboy

calvin ....should be pe 50 la.....30 ..so little only
27/10/2020 2:17 PM

Calvin replies

I think we must also read the market pulse from fellow i3 forumers

ALL TAIKO GLOVES LIKE TOPGLOVE, SUPERMAX, HARTA & KOSSAN WE ASSIGNED THEM WITH P/E 30 AS A WHOLE

THAT WAS IN THE EARLY FIERY STAGE

NOW THAT GLOVE BULL HAS MATURED A P/E OF 20 SHOULD BE FAIR

LIKE THIS

STAGE ONE

Running on flat land
Can running very fast

STAGE TWO

Going uphill now. So the run turns to walk


STAGE THREE

Now near mountain summit

No longer running. Hard to walk also as the going get steep

So?

Crawling up slowly

This is why John Templeton said

Bull market is born in pessimism

Grows in skepticism

Matures in optimism

Dies in euphoria

GLOVE BULL IS NOW BETWEEN OPTIMISM & EUPHORIA
27/10/2020 2:24 PM
sensonic LUXCHEM WILL FLY TOMORROW. SIFU CALVIN
27/10/2020 10:20 PM
MaGic Dust This article is SUPER MISLEADING to con small children >>> You cannot even use forward PE 30 for Supermax (same industry).... Or else Supermax will go up buy 400% (assume current quarter RM800 million x4 = Forward PE 7.5) to match Harta's valuation of PE 30! BETTER THAN buying LUXCHEM :DDDDD

What's more Luxchem and Harta are from two completely different industry LOL
27/10/2020 11:38 PM
calvintaneng Harta needs luxchem to supply it's nitrile gloves chemical

Out there no more nitrile gloves chemical from now till end 2021

Without nitrile gloves chemical Harta will be in deep deep trouble

Just call Mr Sim of Luxchem and you shall know the truth
28/10/2020 12:00 AM
YJInvest Hi Calvin. Your thoughts on AmInvest TP of RM0.79 for Luxchem? AmInvest recommends Sell. I have come to realise that with banks, when they sell, it is actually a buy call. What do you think? Thanks.
28/10/2020 10:43 AM
jackfruit If Luxchem is so good why earn only 1.59sen the current Q reported. Eurospan a furniture maker earn 4.48sen is very much better.
28/10/2020 11:07 AM
calvintaneng Cannot trust Aminvest lah

They gave Target Price for lapsap Mahsing at Rm1.50

Aminvest should change Target Price of Rm1.50 from Mahsing to 79 sen (correct)

And change Target Price of 79 sen for Luxchem to Rm1.50 (correct)

Follow Calvin Tan Research as Calvin done all the research already
28/10/2020 12:00 PM


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