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Supermax EPS as compared with the 10 largest Malaysian listed companies

Koon Yew Yin 1 Feb 2021 

Company NamePriceNet ProfitLatest Q EPSPrevious Q EPSTotal 2 Q EPS 
Supermax6.80105941.1430.5871.72
Maybank7.81195217.378.3825.75
Public Bank4.1913927.1765.1612.33
Tenaga9.65100217.7311.4829.21
Top Glove6.74237629.6415.9545.59
IHH5.113103.281.644.92
CIMB3.841941.962.794.75
MISC5.962585.86.712.5
Genting Bhd3.98-131-3.40-20.41-23.81
Sime Darby2.202814.102.66.70
Genting MY2.46-705-15.46-15.93-31.39
KLK 23.24208.819.4034.2053.90
Unisem8.4050,7446.924.6711.59
MPI33.0055,30828.0525.7553.80

The above tabulation shows Supermax reported better EPS than any of the 10 largest listed companies in Malaysia. I have also included KLK, MPI and Unisem for comparison. Supermax share price is much cheaper than anyone of them and reported more EPS.

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Covid 19 pandemic is affecting almost all the listed companies except medical glove, medical products and a few other businesses. As a result, all the glove makers can easily increase their selling price to make more and more profit which should be reflected on their share prices eventually.

Can the vaccine stop the pandemic?

Professor Peter Piot is Director, London School of Hygiene and Tropical Medicine, UK. He has spent the past 40 years tracking down and fighting viruses. 

He predicts the Covid 19 pandemic will prolong for another 4 or 5 years despite vaccination. Unless everyone in the whole world is vaccinated, the coronavirus can continue to spread. The world population is 7.8 billion. It will take a long time to produce enough of vaccine for so many people. Soon the virus will mutate. UK already has a new form of virus which is more potent. 

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Only a few rich countries can afford have vaccine. Most of the poor countries cannot afford vaccine.

Additional medical staff are required to vaccinate so many people and all medical workers have to wear gloves for safety. Additional gloves will also be required. 

The above table shows that Supermax has a better   profit growth rate than anyone of the 10 largest listed companies in Malaysia. Based on reported facts, Supermax will continue to report more and more profit in the next few years until the Covid 19 pandemic is completely under controlled which will be another few years. 

As I said earlier, Covid 19 pandemic is affecting almost all the listed companies. As a result, all fund managers are losing money because they usually have invested in many stocks. They have to find some devious ways to recover their losses. These fund managers including JP Morgan would stoop so low to down grade glove stocks. It is so ridiculous. As a result, all the glove stocks have been dropping in the last 2 months. Short sellers can sell and buy back at cheaper prices to make money. But when the share price goes up they cannot make money.  

Securities Commission should stop short selling to protect small investors.

The SC should also penalise the manipulators who purposely push down the share price so that they can buy back at cheaper price to make money.     

Fortunately, in the last few trading days, there were more buyers than sellers. As a result, all the glove stocks have been going up slowly but surely. I believe good fundamentals must prevail eventually.  

Supermax made 50% more profit than its previous quarter. Its total EPS for 2 consecutive quarter was 71.72 sen which is better than any of the 10 largest listed companies in Malaysia including MPI, Unisem and KLK. 

Supermax will continue to make more and more profit in the next few years. It is very much undervalued.  

Even if I assume Supermax cannot increase its selling price for its gloves for the rest of its financial year, its annual profit will be 71.72 X 2 = Rm 1.43 per share. Based on PE 15, it should worth at least Rm 21.50 per share. This target price is easily achievable. 

The target price should be higher if I assume it can increase its selling price for its gloves. 

I am not asking my readers to buy to push up the share price because the daily traded volume is tens of million shares. Whether you buy or not will not make any difference. I just want to share my knowledge with you.  

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