The reporting season is over. Quite sometimes i did not review my position, my share holding still the old ones, Hartalega, Public Bank and Allianz. Hartalega posted record quarterly profit of 55mil, the highest among glove players. What i foresee last year happened today as latex glove producers are all suffering but nitrile glove producer is enjoying. However, the market still fail to appreciate Hartalega....again. Although it had running a full capacity, people are blaming it lack of room to expand. For those are running at 60-70% capacity are regard as got room to improve. I really cannot understand the logic especially these arguments are from the so called "analyst". Hartalega had rolled out additional 2 lines at Plant 5 and is planning to build the capacity. After all these materialized, it would it capacity by 35% with the order is waiting to flow in immediately. Hartalega is not that kind of company able to grow by M&A due to its patented in-house production technology, which made them so efficient and lowest cost producer. If they decided to take more market share in future, it would kill off all competitor by lower its margin by a "few percent only". Yes.....is all its competitors. I truly not able to understand why Topglove is more pricier than Hartalega by close to market capital by almost 1 Billion. The market is so illogical!
Public Bank also posted wonderful results, it should be able to make EPS of 100sen this year. It is only trade at prospective PE of 13. Only PE of 13 for one of the best managed company. Once i joke with my friend, why he want to buy Well Fargo, since Public Bank is better? Growing profit quarter by quarter, some said "slow and steady" but i think it is not true. It is growing at the rate of mid teen and above for years you guys still called it slow and steady??
Allianz is making 70mil for 6 months ended 30 June 2011, it is now making more money than LPI, without taking into the account of any surplus transfer from life insurance. Which its market capital is also 1 Billion less than LPI. Is matter of time Allianz will fetch a comparable market capital with LPI.
Although the market is highly fluctuated currently, but i still confident that my share holding is able to withstand that and beat the market.
Kossan Treasury Share
4 years ago