FIGURE 1: COMFORT GLOVES BERHAD
LAST 5 YEARS SHARE PRICE TREND
**analysis
based on 2019 annual report.
1.
GENERAL INTRO: Comfort Gloves is one of the major
glove manufacturers in Malaysia.
2.
NOTABLE POINTS:
a. in
2019 report, stated that key markets include US and Canada (34%), Malaysia
(32%), Asia (25%)
b. approximately
89% of revenue was derived from synthetic premium speciality gloves, while the
remainder was from natural rubber gloves.
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (million): ~474 million in 2019 annual report, this is a medium revenue
company.
b. SHARE
PRICE: from 2015-2019, share price remain steady at around RM0.80
c. EARNING
PER SHARE (EPS): earning per share in last 5 years almost doubled from 2.87 to 5.69
sen, indicating a good growth potential of this counter
d. FUTURE
POTENTIAL/PROSPECTS: quite dependable and reliable counter, share price expected
to be stable.
e. CAPITAL
EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 63.7
million, around 14% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2019 report, Comfort declared a total dividend payout of 1.5 sen per
share, amounts to dividend yield of 1.97 % based on current share price.
b. CONSISTENCY:
not consistent dividend payout, last five years (2015-2019) dividends declared range
from 0 to 1.5 sen per share.
c. DIVIDEND
PAYOUT RATIO: in 2019 financial year, Comfort paid out about 52% of its
earnings to investors in the form of dividend.
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2019 financial year, Comfort Gloves achieved a good return
of shareholders’ equity, at 10.56%.
b. COST-TO-INCOME
RATIO: cost-to-income ratio is quite high at about 1238%.
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive, around RM 23.4 million, equivalent to RM 0.04 per
share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is reasonably well supported by institutional investors, there are 13 institutional
investors at top 30 major shareholders list, including Kumpulan Wang Persaraan
(1.28%), Keen Setup Sdn Bhd (11.21%) and few insurance companies and investment
funds. Also notable shareholding by director Mr. Cheang Phoy Kean (18.09%).
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