(Post date : 16 August 2010)
Rubberex Corporation (M) Berhad, an investment holding company, engages in the manufacture and sale of natural and synthetic rubber gloves for household, industrial, and professional applications in Malaysia, the People's Republic of China, and Europe. It also engages in trading gloves, household items, kitchen items, and personal protective products. In addition, the company manufactures and sells male latex condoms. Rubberex Corporation (M) Berhad was founded in 1987 and is headquartered in Ipoh, Malaysia.
PROVEN RECORD- Established since 1987 Rubberex is a leading global player in natural and synthetic rubber gloves for household, industrial and professional applications.
PRODUCTION FACILITIES- Sited on 70,000 sq. m land area the production facilities within a single location give Rubberex the edge to serve the multiple needs of the customers.
PUBLIC LISTED COMPANY- As a listed entity on the Malaysian Stock Exchange since 1997 Rubberex is adequately capitalized and expected to be responsible in its dealings with its customers.
GLOBAL MARKET- Sales to over 100 countries demonstrates the global reach and reliability of Rubberex as a manufacturer.
RESPONSIBLE EMPLOYER- It employs over 1,000 people. Many senior staff are still with the organization since inception and a high percentage of its employees have remained in service with the organization for over 10 years.
ENVIRONMENT- Rubberex believes in the Green Policy practices as evidenced by the ISO 14001 certificate it renews annually.
PRODUCT QUALITY- It adopts good manufacturing practices through the ISO 9001 certificate which it obtained since 1992.
Insert candle chart here
SELL!!
The stock has been in downtrend since January 2010 and from May to August 2010, the stock is trading in between RM0.94 to RM1.11, stock price is currently trade at RM0.92 (25th August 2010). The lowest price at RM0.61 (March 2009) has been gone up to the highest during January 2010 at about RM1.61, after then it has been in downtrend until now. From May to August 2010, stock price is in lateral trend with the support at about RM0.94 and the resistance at about RM1.11, if the stock price break this trading zone, most probably the stock will be falling further. Besides this, RM0.99 is the 61.8% retracement for this stock price since last year March. If in near term stock price not going up and trade in between the lateral range (RM0.94 to RM1.11), the stock price will be heading downward according to the technical analaysis theory. How true is it? We will get the answer in this coming few months. It is always better to do more research ourselves rather than fully rely on the investment analysts who always ask us to buy or hold stock at any point of time.
|
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Rolling 4 Qtrs |
|
03-2009 |
06-2009 |
09-2009 |
12-2009 |
03-2010 |
|
Turnover ('000) |
74,997 |
73,502 |
85,229 |
91,715 |
91,400 |
341,847 |
Profit before Tax ('000) |
5,288 |
5,802 |
6,033 |
6,110 |
5,150 |
23,095 |
Net Profit ('000)* |
2,696 |
2,707 |
5,549 |
5,610 |
3,923 |
17,789 |
EPS (sen)** |
3.360 |
3.360 |
6.800 |
6.710 |
1.980 |
18.85 |
DPS (sen) |
0.000 |
0.000 |
6.000 |
0.000 |
0.000 |
6.000 |
Special DPS (sen) |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
If you check the table below, the EPS is getting lower and lower per every quarter. Net profit for the second quarter 2010 is merely RM2,005,000, lower than the last year same quarter as well. If the ringgit gains agains the US dollar, glovemakers will see their margins drop as they sell their products in US dollars while their costs are in ringgit.
PROFIT & LOSS |
2009-12-31 |
2008-12-31 |
2007-12-31 |
2006-12-31 |
2005-12-31 |
TURNOVER |
317,627 |
274,512 |
144,929 |
121,389 |
123,327 |
OPERATING PROFIT |
33,030 |
18,709 |
1,389 |
10,537 |
14,464 |
PROFIT/LOSS BEFORE TAX |
33,030 |
11,882 |
-4,485 |
8,207 |
14,464 |
NET P/L TO SHAREHOLDERS |
27,043 |
8,632 |
-1,626 |
6,878 |
11,362 |
( Inclusive of ) |
|
|
|
|
|
Depreciation |
(15,064) |
(13,337) |
(11,920) |
(10,406) |
(10,081) |
Interest |
(7,966) |
(7,041) |
(5,451) |
(2,330) |
(1,186) |
Taxation |
(727) |
(2,228) |
(230) |
(1,625) |
(3,075) |
*All figures in RM'000 |
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|
|
|
|
|
|
|
|
|
|
GROSS EPS (SEN) |
20.06 |
10.92 |
-2.05 |
8.72 |
15.37 |
GROSS DIVIDEND (RM) |
0.04 |
0.05 |
0.06 |
0.15 |
0.20 |
|
