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Sector                 : Healthcare

Sub Sector         : Healthcare Equipment & Suppliers

As of 1 April 2020 there are 5 company listed in Bursa Main Market and ACE market which are doing business in manufacturing and trading of gloves. They are:

Competitiveness

Marketshares is an importance indicator to determine the competiveness of the company. Total revenue make from manufacturing and trading of gloves for the year 2018 is RM 10,140,827917.

COMPANY
REVENUE (GLOVES) 2018 (RM)
MARKET SHARE (%)
338,711,239
3.34
2,405,638,106
23.72
1,874,919,000
18.49
1,300,817,572
12.83
4,220,742,000
41.62
TOPGLOV has the most market shares in gloves industry which is 41.62 % of the total gloves revenue in Malaysia for 2018.

Operational

For operational, operating income of the companies had been review. Operating income determine how much the companies’ revenue had turn into profit after reduction cost of operating expense .

Besides operating income, operating margin ratio is also calculated. Companies with higher operating margin ratio have more probability to survive in today financial crisis. The median operating margin ratio for this group of companies for 2018 is 13.29.

COMPANY
2018 OPERATING INCOME (RM)
2018 OPERATING MARGIN RATIO
11,559,652
3.41
534,352,573
22.21
240,551,000
12,83
228.920,600
17.60
559,572,000
13.26
HARTA has high operating margin ratio which is 22.21 compare to the others company in the industries the closet which can match with HARTA is SUPERMX  which has the operating margin ratio of 17.60.

The gloves giants TOPGLOV only had operating margin 13.26 despite having operating income almost similar to HARTA. This mean that TOP GLOV has high operating expenses.

Sustainability

For the sustainability of the business, debt of the companies is being review. There are two criteria to look at interest coverageratio , which is used to determine how easy the companies able to pay off the interest of outstanding debt and debt ratio. The median debt ratio for 2018 is 0.40.

COMPANY
2018 INTEREST COVERAGE RATIO
2018 DEBT RATIO
2.11
0.53
67.44
0.24
12.33
0.38
7.89
0.40
15.22
0.55
HARTA once again show is the best company for sustainability as it have the lowest debt ratio and high interest coverage ratio.

Summary

In summary a point is given to each company to evaluated each company competitiveness, operational and sustainability. Points given are as follows:
Competitiveness

Criteria
Point
Greater than 40 % Market Shares
5
30.01 % - 40.00 % Market shares
4
20.01 % - 30.00 % Market shares      
3
10.01 % - 20.00 % Market shares      
2
1.00 % - 10.00 % Market shares        
1
Less than 1%
0
Operational
Criteria
Point
Greater than 20  Operating Margin
5
15.01 – 20.00 Operating Margin
4
10.01 – 15 Operating Margin             
3
5.01 - 10.00 Operating Margin           
2
1.01 - 5.00  Operating Margin            
1
0.00 – 1.00 Operating Margin
0
Less than 0
Disqualified
Sustainability
Criteria
Point
No Financial Cost
2
Greater than 20 Interest Coverage Ratio
1
Less than 20 Interest Coverage Ratio
0
Criteria
Point
Less than 0.25
3
0.25 – 0.45
2
0.45 – 0.60
1
Greater than 0.60
0
COMPANY
Competitiveness
Operational
Sustainability
Total
1
1
1
3
3
5
4
12
2
3
2
7
2
4
2
8
5
3
1
9
From the evaluation above, HARTA (12 points) is qualified for further analysis.

Summary of Stock Reviews

http://ivkls.blogspot.com/2020/04/industry-comparison-gloves.html
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