TWO(2) quarter before EPS is just 2.31 sen (official)
ONE(1) quarter before EPS is just 5.42 sen (official)
The current quarter EPS is just 30.58 sen (official)
Next quarter EPS is just 36.69 sen (forecast; assume ASP increase 20% ONLY!)
So, total 4 quarter EPS is 2.31 + 5.42 + 30.58 + 36.69 = 75.00
My personal opinion on PE for rubber glove company especially the big rubber glove company is around PE 40 to PE 70 during this Covid-19 period.
EPS x PE= Price
75.00 x 40= RM30.00
75.00 x 50= RM37.50
75.00 x 60= RM45.00
75.00 x 70= RM52.50
Based on the observation on the PE recently, the Top 4 glove companies namely Topglove, Supermax, Hartalega and Kossan achieve P/E 100 and more. It is safe to give a P/E 40 to 70. So, the price shall be at least RM30.00 to RM RM52.50
Disclaimer…This is not an advice to buy or sell. It is just for education and sharing purpose. Vinkuat do not take accountability for any trading occurring from our information disseminated.