| (Post date : 16 August 2010)
ADVENTA’s objective is to focus its growth on medical & healthcare supplies and services, as well as manufacturing and/or supplying strategic products that may be synergistic to the core business.
Subsidiaries within the Group are specialized in their respective disciplines, with their own established and loyal markets. The steady and consistent growth regulated by prudent policies has positioned the Group in significant markets with its reputation for quality, consistency and innovative products. The Group’s policy of equitable business with its customers and suppliers has cemented a strong relationship that has contributed to the foundation for continuous growth.
Supporting this strong growth is the firm Research and Product Development platform that has been diligently built over the lifetime of the Group’s operating units. This provides the Group with a pipeline of new products that ensures improving revenues and increased earnings.
ADVENTA is a strong manufacturer of sterile surgical glove for the acute care industry. These products are used exclusively by surgeons and operating room personnel for special high risk applications required in a modern hospital. The high in-house technical knowledge base to produce these application-surgical gloves and the hard earned trust of the most critical users, place ADVENTA among the elite few in the industry capable of attaining worldwide acceptance.
The Group has applied for worldwide patents for its products and envisions a growing market for its new and innovative application-surgical gloves
The Kota Baru, Kelantan-based company is one of the world’s largest surgical glovemakers, a fact not many invesotrs are aware of. Managing director Low Chin Guan points out that Adventa is the only glovemaker that deals directly with hospitals and healthcare practitioners, selling under its own brand names without agents and middlemen.
ADVENTA has also taken the lead in using renewable energy, using biomass as an alternative to natural gas. It has an agreement with the Federal Land Development Authority for the supply of palm oil waste as part of its investment in energy-saving measures. Close to 60% of the energy for the company’s palnts is generated using biomass. Adventa has said in the past that it would consider selling its excess energy capacity to other industrial users.
SO WHAT NOW? TO SELL OR TO BUY?
As compared to other competitors in this industry, Adventa stock price has been dropped more than 30% since January 2010. While the other competitors like Kossan, Topglove, Supermax still in good position. And according to the industry sources, rubber industry might have the problem of overcapacity as some of the big players had planned to expand their business. As for the next quater, worldwide economy is predicted heading downtrend and in slower pace, it might cause the problem of oversupply of gloves as the needs of the buyers might be slow down. And Glovemakers will see their margins drop as they sell their producst in US dollars while their costs are in ringgit.
You may have a look for the profit and loss of the stock as shown below.
PROFIT & LOSS |
2009-10-31 |
2008-10-31 |
2008-01-31 |
2007-01-31 |
2006-01-31 |
TURNOVER |
282,742 |
185,948 |
225,058 |
173,522 |
126,084 |
OPERATING PROFIT |
25,809 |
3,738 |
23,252 |
17,109 |
13,677 |
PROFIT/LOSS BEFORE TAX |
18,425 |
13,360 |
19,366 |
15,197 |
13,677 |
NET P/L TO SHAREHOLDERS |
16,964 |
13,660 |
20,257 |
15,420 |
14,739 |
( Inclusive of ) |
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Depreciation |
(9,642) |
(6,691) |
(6,983) |
(6,082) |
(6,003) |
Interest |
(5,616) |
(3,510) |
(3,886) |
(1,912) |
(553) |
Taxation |
(1,533) |
(-224) |
(-1,056) |
(-223) |
(-1,191) |
*All figures in RM'000 |
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GROSS EPS (SEN) |
12.04 |
9.82 |
14.59 |
12.24 |
3.28 |
GROSS DIVIDEND (RM) |
0.07 |
0.00 |
0.04 |
0.03 |
0.04 |
THE COMING QUARTER IN 2010 MIGHT NOT BE AS GOOD AS THE PREVIOUS QUATERS IN 2009. SO MAKE WISE DECISION.
CASH FLOW |
2009-10-31 |
2008-10-31 |
2008-01-31 |
2007-01-31 |
2006-01-31 |
Operating Activities |
28,145 |
15,943 |
12,351 |
9,629 |
18,199 |
Investing Activities |
-27,111 |
-25,632 |
-37,752 |
-36,092 |
-29,652 |
Financial Activities |
496 |
9,854 |
30,318 |
39,614 |
14,295 |
Net Cash |
1,530 |
165 |
4,917 |
13,151 |
2,842 |
Cash b/f |
37,302 |
37,137 |
32,220 |
19,069 |
16,227 |
Cash & Bank Balance |
22,065 |
11,144 |
33,982 |
3,323 |
6,103 |
Deposits |
16,765 |
26,557 |
3,796 |
29,105 |
12,966 |
Overdraft |
0 |
-400 |
-641 |
-208 |
0 |
Cash c/f |
38,830 |
37,301 |
37,137 |
32,220 |
19,069 |
*All figures in RM'000 |
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Adventa currently is traded at RM2.65, about 50% retracement RM2.545 , with the highest price at January 2010 (RM4.30) and the lowest price in April 2009 (RM0.77). This stock is in downtrend since January 2010, if this support line is break, the next support will be RM2.13, which is also 61.8% retracement. This support line (RM2.13) is a strong support line as there are the 2 historical resistance points that turn into current support line. The two historical resistance line occured during August and October 2009 at the price about RM2.20. So if this support line is break, the stock will be subjected to further falling? Or rebound back after touching this strong support line?
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