WOW !!! THIS CO HAS STARTED SELLING THEIR OWN BRAND SANITIZERS IN JOHOR AREA !!!
Hello
to all readers out there. Recently, a lot of healthcare counters have
hit new highs. Even those venture into healthcare sector are moving very
high (some just writing MoU and JV but never come up with actual
product yet).
An
acquaintance of mine, in Johor, had highlighted that he came across
this SANITIZER in Johor area, which I am surprised about since there had
yet been any official announcement from the company, although the
product had already starting to be distributed in Johor (factory located
in Johor).
Having said the above, the stock which I'd like to talk about today The company I am talking about is SERSOL BERHAD (SERSOL - Stock Code 0055, ACE Market, Industrial Products & Services - Chemicals)
BASIC INFORMATION ABOUT SERSOL
SERSOL
is a company involved in high quality coating solutions related to
buildings, furniture, electrical and electronic products.
They have 3 subsidiaries, namely Multi Square Sdn Bhd, Sersol Marketing Sdn Bhd and Multi Square Coating (Thailand) Co Ltd.
Market Capital : RM 26.92 million
Shares Float : 215.35 million
WHAT'S THE STORY ???
So, a friend of mine had informed me that there is a new hand sanitizer product available in Johor market. The image as below:
If we zoom in further in the bottom left area:
It
says that the sanitizer is manufactured by Multi Square Sdn Bhd, which
is a subsidiary of SERSOL BERHAD. Currently, the product is mainly
available in Johor as this is where their factory is located.
A few info was shared to me regarding this sanitizer:
1. HAND SANITIZER IS MIXED BASED ON W.H.O. RECOMMENDED FORMULA
Based on the info provided, the sanitizer is mixed based on W.H.O recommended formula as circled in image below:
2. OBTAINED APPROVAL FROM RELEVANT AUTHORITIES AND STARTED TO BE DISTRIBUTED ON 11 MAY 2020
The
product had obtained approval from relevant authorities and now
registered under the National Pharmaceutical Regulatory Agency.
Based
on information provided to me, the product Safety Data Sheet (SDS) was
launched on 11th May 2020 together with the Distributorship Notes.
For those who are interested to enquire about distributorship can directly call the company line as below:
3. WHY IS THERE NO OFFICIAL ANNOUNCEMENT YET FROM SERSOL ON THIS ???
Well,
I am not sure about this matter either. There can only be a few
possibilities which I could think of that SERSOL has not yet announced
this officially:
i. They want to see how the market demand is for the product before making official launching
ii. They are not ready for nationwide distribution
iii.
They are waiting the right time to announce as right now country is
still in CMCO (Conditional Movement Control Order) due to COVID19
However,
despite the above, I feel that it would be better if the company made
an official announcement with regards to this venture, to be fair to its
existing shareholders, and also for other potential investors out there
looking to get a piece of the healthcare boom.
4. MAJORITY SHAREHOLDER MR TOH HONG CHYE ACCUMULATING SHARES FROM 9 - 20 MARCH 2020
As
you can see below in the image, Mr Toh Hong Chye, who is Executive
Chairman & major shareholder of SERSOL, had added a total of
3,328,800 shares from 9-20 March 2020.
This brings his total shareholdings to roughly 50.3 million or 23.4% of the total float shares.
5. TECHNICAL ANALYSIS
Refer below the basic price and volume chart with key EMAs which I like to use to determine basic trend. A few observations:
i. Price of SERSOL at the closing (12.5c), is already higher thatn EMA365 of 10c, which indicates a bullish momentum ahead
ii.
Earlier, it was mentioned that the product safety sheet and distributor
notes was announced on 11/5/2020. We see that big volumes had entered
the stock on 13-14 May 2020, when the price hit a high of 13c
iii.
Since hitting recent high, the price had retraced, however we see that
minimal volumes had exited indicating strong hands are holding on to
higher prices in future
iv.
With the recent healthcare boom in other stocks (even with no
products), the possibilities for SERSOL are endless (possible to break
20c in the mid term)
CONCLUSION
Considering all the above, I opine that current price for SERSOL is attractive due to below:
i) Manufacturing and distribution of their own sanitizers had started in Johor state
ii) Sanitizer follows WHO recommended formula and has obtained local authorities approval for distribution
iii) No official announcement yet from SERSOL
iv) Chairman added 3.3 mil shares in March 2020
v)
TA shows stock already trading above key EMAs especially EMA 365,
indicating long term bullish direction, with significant volumes
entering this stock in the recent term after the product was distributed
into market
LET’S SEE HOW THE SHARE PRICE MOVEMENT IN THE NEAR FUTURE FORBEARING ANY GOOD CORPORATE NEWS.
Disclaimer
: The above opinion is never intended to be a BUY CALL whatsoever. I am
sharing my observations ONLY based on fundamental; past history;
current trading pattern; charts etc. Please make your own informed
decision before buying this share or whatever share for that matter.
BURSAMASTER
https://klse.i3investor.com/blogs/Bursa_Master/2020-05-27-story-h1507864606-WOW_THIS_CO_HAS_STARTED_SELLING_THEIR_OWN_BRAND_SANITIZERS_IN_JOHOR_ARE.jsp
