Sunday 23 January 2022

Iconic Gloves: Only Time Will Tell

Last week in mid Jan22, Iconic officially launched its RM200mil gloves and face mask manufacturing facility in Batu Kawan.

This facility will house 12 double former gloves dipping lines (capacity 3.3bil per year) and 20 medical face mask production lines (capacity 220mil per year).

It has obtained CCC in early Nov21 and at the time of the official launch in Jan22, 6 nitrile gloves lines have already started running since Dec21.

The rest of the 6 gloves lines and 20 face mask lines are expected to start by Mac22.

Since the end of year 2020, share price of the 7 listed medical gloves companies in Malaysia dropped tremendously as their profits fell due to declining average selling price (ASP).

For new kids on the block who recently diversified into medical gloves manufacturing such as Iconic, their revenues (and probably profits) will grow as the contribution from gloves kicks in.

How will the market value the newcomers? Will their share price drop like the existing gloves counters, or rise due to increasing profit?

Saturday 15 January 2022

Preview of 2022: Tech Stocks Off To A Bad Start


Which sector in Bursa Malaysia will excel in year 2022? 

I think many investors opine that technology sector will continue to flourish in 2022 after doing exceptionally well in 2020 & 2021.

The reason is simple: 5G, electric vehicles, autonomous vehicles, Internet of Things, IR 4.0, smart devices, metaverse etc. 

These things are the future and it seems like they are still in their infancy stage. All of them need a lot more sophisticated chip.

Thus, semiconductor's demand is high in the foreseeable future.

However, as we step into the first two weeks of 2022, the stock prices of technology stocks in Bursa Malaysia drop like nobody's business.

Most of them suffers 15-25% slash in their share prices in the past one week alone.

Is this a golden opportunity to grab their shares or is it just the beginning of a prolonged downtrend?

Tuesday 4 January 2022

My Portfolio Dec21


Summary For December 2021

Portfolio @ End of Dec21

Finally a difficult year 2021 was over. My portfolio was flat in December and ended the year with a small gain of 2.32%.

This result is almost similar to year 2016 when my portfolio registered a 3.2% loss but I felt that 2021 was worse than 2016.

This is because I started year 2016 badly with a 10% loss in the first month. However, it improved from the second half and ended the year with the least loss.

In 2021, it was the opposite of 2016 as my portfolio started the year with a bang with 35% gain in the first month only to see the gain evaporated to just 2.3% by the end of the year.

Generally I feel relieved that I'm still able to stay in positive territory in year 2021 but at the same time also feel disappointed.

Last month was a "buy" month in which I bought in 4 companies' shares but this month is a "sell" month in which I sold the shares of 4 other companies.

With this move, I have reduced the total number of stocks in my portfolio to 14. There are still 4 stocks that I planned earlier to dispose in year 2021 but failed to do so.