Trading Buy : Supermx Review for 2nd quarter

Undervalue fundamentals.

Q2 revenue 234 825
Net profit 45,856
Net Profit Margin = 19.5%
EPS 13.51
Share Issue 339,423
Cash per share 83184 / 339423 = 0.24
Debt per share = 0.899
Inventories per share = 0.346
Net TR per share = TR-TP /Share issue = 0.55
Receivable Turn Over Ratio = ( TR /Revenue x 365 )/4
= 245227 / 234825
= 95days

TR 230,952
OTR 14,257

Cash 83184
Inventories 117272

Reserve increse frm 424710 to 482278
Long term Borrowing 163,632
Shorterm 141652

Trade payables 41,443

Betting on rebound.

FA = OK , Valuation quite good. most conservative calculation, eps 52 whole year ,PE only 8.36 as compare to pe 15 industry average. US Decision to approve medical restructuring will boost glove sector

Impact on Ringgit = from 3.3 to 3.1 riggit appreciate 6% thus reduce 6% of earnings. No problem to its high profit margin 19%. After riggint appreciate still able to make 13% due to its high profit margin , still a value buy.

TA Indicator are showing downtrend since Aug 4

Short Term trending from 20 to 21/9/2010
Price 4.35 to 4.30
RSI 24.96 oversold to RSI 40.25
%K > %D a little bit

Buying based on Price dropping from 5.48 after dilution to 4.35, 20% dropping.
EPF is buying at 5.47 @19/8 , 5.07 @ 25/8 , 4.83 7/9, 4.64 8/9, 4.83 9/9, 4.81 14/9

Total EPF holdings 22,962 = 6.7% where 6 million shares were bought recently. Something is cooking here.

Target Profit 10- 15% , which will be RM 5 a piece.
Cutloss at 11% @ 3.88


Disclaimer:These content provided is solely for education and information purposes only, and do not suggest any investment advices.