Wednesday, December 26, 2018


- 成立于1973年,并于2003年10月31日上市。

-本地老字号锡罐制造商,但制罐业务已饱和,2011年收购Able Dairies进军乳制品业务,以多元化业务,并且让制罐业务和乳制品业务达到协同效益(乳制品大多是罐装的)。如今乳制品业务已经成为Johotin的主打业务,占公司总业务约70%。


原材料-镀锡Tinplate和奶粉Skimmed Milk Powder

-竞争对手OneCan, KianJoo。

Company Structure


- 主要供应本地市场

- 锡罐是长久储存食品包装最佳材料,难以代替。

- 原料本地供应商 Perstima(站其公司10%左右的销售),进口就从中国和印尼。


- 生产浓缩(condensed)和冷凝(evaporated)淡奶产品(both in-house & OEM)和奶粉。

-在 Teluk Panglima Garang的工厂产量为80,000 tonnes/year,目前Fully utilised。

- 2014年为了迎合乳制品的需求,Johotin开始扩充产能,增设新厂和货仓。2017年工厂已经竣工,新的生产线能够继续为公司带来更高的生产效率,并提高其价钱竞争力。专生产奶粉的新厂一年可生产60,000 tonnes,目前使用率为25%-30%,Johotin接下来会专注争取订单以填满使用率。

70%营业额出口到Asia, Central America, Europe and Africa.

- 市场定位: 由于中高收入市场较难与市场龙头Nestle 和F&N竞争,Johotin专攻中低收入市场(如批发到在乡村地区的Mini Market和杂货店),出口方面目前专注第三世界国家如Africa。

-Johotin认购Able Dairies Mexico联营公司40%股权可算是低风险且明智的投资。不但可省下一些出口市场的运费,同时也为公司要进军美国市场增添了条件。墨西哥是Free Trade Zone而且比直接在南美设厂来得便宜。墨西哥的新厂预计会在2019年3月被启用,每年产能达80,000 tonnes。据了解,新厂投入运作后,立即可达到收支平衡(40%使用率),因为有来自墨西哥、中美洲以及美国现有客户的订单。墨西哥新厂投运后,可释放大马厂房的20%能,管理层也有信心即刻填补这额外的产能。

- 低债务公司,Johotin目前的Net Cash为RM 86 mil,进可攻退可守(尤其是在最近市场动荡的非常时刻。)

- 派息率强,过去5年的Dividend Payout为60%左右。加上公司接下来应该不会有太大的Capex,相信接下来有机会会调高派息。


- 奶粉市场的CAGR高达7%至8%

- Johotin的原料(Tinplates和Skimmed Milk Powder)的价格浮动会直接冲击公司赚幅,更是导致2017财年盈利比理想的主因)。虽然公司可以将价格转嫁给消费者,但是会有大约3至6个月的Time Lag,而且转嫁给消费者的会影响竞争能力,尤其是饮食业。

- 公司70%的产品都是出口的,同时80%的原料是进口的。汇率的浮动会直接冲击公司的赚幅和价格竞争力目前公司没有做太多的Hedging,大多属于Natural Hedging。

贸易战,华为事件,油价滑落,美联储加息,美国政治动荡局面等负面因数导致2018年下半年的股市除了波动还是波动,很多投资者对股市都都少了份安全感,纷纷套现保持观望态度或者把资金转向业务较为稳定的公司,希望找到“避风港”。而Johotin本事的生意业务是生活必须品(Necessity),对于市场的动荡有一定的免疫,加上净现金状况,可说是高防守性公司。但是面对原料价格的波动(造成2017财年盈利不理想的主因),很多时候还是有心无力,只能努力提高公司效率以保护赚幅和竞争能力。Johotin的P/E目前是11.76,比起同行Canone高。技术面方面,11月28日公布利好业绩后,股价一举冲破EMA 200生命线,还两度试探阻力RM 1.05但无功而返,目前回调到RM0.95 EMA 25和50附近徘徊。

Saturday, December 8, 2018

Karex AGM 2018 Highlights

Karex AGM 2018 Highlights

Difference Gloves vs Condom
Medical Classification
Class I Medical Devices
A Class I medical device are those devices that have a low to moderate risk to the patient and/or user. Today, 47% of medical devices fall under this category and 95% of these are exempt from the regulatory process. If a device falls into a generic category of exempted Class I devices, a premarket notification application and FDA clearance is not required before marketing the device in the U.S. However, the manufacturer is required to register their establishment and list their generic product with FDA. Examples include enema kits, elastic bandages, manual stethoscopes, and bedpans.

Class II Medical Devices
Class II medical devices are those devices that have a moderate to high risk to the patient and/or user. 43% of medical devices fall under this category. Most medical devices are considered Class II devices. Examples of Class II devices include powered wheelchairs and some pregnancy test kits.

Class III Medical Devices
Class III medical devices are those devices that have a high risk to the patient and/or user. These devices usually sustain or support life, are implanted, or present potential unreasonable risk of illness or injury. They represent 10% of medical devices regulated by the FDA. Examples of Class III devices include implantable pacemakers and breast implants

Medical Classification – Class I
Manufacturing Process
1.       Dipping
2.       Boxing

-          Glove Manufacturers do not need to test all their products.
-          Instead, they do sampling to check for pinholes. If the glove passes the test, it can be used for medical purposes. Otherwise, it goes for general usage.
-          Glove Manufacturers can translate cost prices to customers every month.

Medical Classification – Class II
Manufacturing Process
1.       Dipping
2.       Testing
3.       Casing
4.       Boxing

-          For condoms, I can’t say that there are some holes on this one and the other is perfect, because there is only one usage for it. And you cannot say since the US is paying more, then I give them a better quality while for Africa, I give them all the rejects. So, each single condom must be tested and certified hole-free.
-          Because of its Medical Classification – Class II, any changes to the manufacturing process need to be validated.
-          Condom prices hardly change because of its competitiveness with other manufacturing player
-          Price Celling from certain countries

Competitive Advantage
Various Sizing
Bespoke “Perfect fit” condoms with variations of 10 lengths, nine widths and 60 sizes.
To make sure one fits, customers only need to download an online ruler called “FitKit”, measure and enter their size to the website to get the size code.
Other Player: 2-3 Sizes


2021 plan to switch 80% processes to Automation
20% is automated currently, 40% Manpower are from Testing Segment, had cut down approx. 300 employees, aim to cut down to approx. 1500 employees, currently stands at approx. 2800 employees.

Labour Cost 

21% Labour Cost are expecting a drop till 10-12% easily after 2021 automation
Other Player: 90% Manual Processes

Karex builds its own machines in order to have the flexibility advantages in production. Able to weld and build own machines in-house cope with customer demands.

Latex Compounding
Form Karex Polymers Limited (Thailand)

Karex is improving latex processes in-house to optimize latex volatile prices, storage of latex during wintering month.


Ultra-thin technology able to compete with other players who having thin condoms.
Players in Industry
Guangzhou Daming United Rubber Products – World thinnest Latex Condom “Aoni” 0.035-0.039 millimeters
Sagami Rubber Industries – World thinnest Polyurethane condom “Sagami 001” 0.013-0.019 millimeters (yet to compete)

Yearly Capex: RM20million
Last 5 years, mainly on facilities, and automation.
Moving 5 years, mainly focusing on automation

Brent Oil High
Latex Price High
Silicon Oil High
Licensing fees of OBM listing in new countries
Client need at least 1-2 Years for new product listing and certification

2018 USD sliding from 4.3-3.9 vs MYR
2018 Brent Oil went up from USD 40-70 per barrel
2018 Latex Price volatile between RM6-RM4 per kg
2018 Silicon Oil USD 4.5-7.5
Tender to Institutional buyers such as United Nation Population Fund (UNFPA), United State Agency for International Development (USAID), Population Service International (PSI), Marie Stopes International (MSI), John Snow Inc (JSI) and Crown Agents International Limited

Currently Tender Business covering 50% of the business looking to continue slides in future mainly due to Global Government cutting spending on HIV Prevention, to reserve and invest in own country.

Manufacture condoms for customers such as Ansell Limited (Lifestyle brand), Reckitt Benkiser, PLC (Durex brand), Line One Laboratories Inc, (Trustex brand)
Consolidation in the industry is being seen, as a lot small players are throwing condom prices to have healthy balance sheet and wait for big players acquiring.


Manufacture condoms under own brands namely “Carex”, “INNO” and “One”.
Current: 15% Revenue
Target: 30% Revenue by 2022
Main Market : US, UK
Current profit still breakeven, and will not have any in near 1-2 years, Karex is looking at branding, awareness, footprint across the world as the world is moving to discountal modal, supermarket tends to only reserve 2-3 Condom brands in their supermarkets.
Launched new flavor “Nasi Lemak”, “Teh Tarik” and etc past few months, and had been receive a lot of awareness, “Free Marketing with cheap cost”. The cost of “Nasi Lemak” flavor is only RM50,000 hence, it boost its brand awareness throughout social media, newspaper, blogs.
Karex is tapping on global social media trend to engage Social Media Influencer as ambassador such as “Jinnyboy”, “Namewee” and etc.
Karex own brand “One” is saving costing by using online platform by having own online store, and listed in, and coming up in


There are still many countries to penetrate into for their OBM.
Asian market has a focus on thickness, preferring their condoms to feel as au naturel as possible. But North American markets, don’t mind sacrificing a little thickness in the name of safety.


Karex is transforming from a condom-centric business into a broader sector called “sexual wellness”.
While condoms remain as the company’s main revenue generator, Karex is expanding into other medical products such as lubrication gels, probe covers and catheters.


Current production: 5 Billion
To produce six billion condoms by next year and one key element to achieving that is automation in its manufacturing plants.

Some Questions and Answers from Shareholders
Why “One” Brand?
Unique young brand, young customer based, they never go to advertisement and newspaper for marketing, we are using crowd sourcing strategy on our online platform to allow customers to vote, request their flavors, size and etc. We had our own marketing and designer hence we save a lot cost from marketing perspective, it is more costly when entering new market (licensing, certification and listing). We are tapping into online shopping platform like Taobao, Amazon and Walmart in near future.

Plans to improve OBM Bottomline
Currently no profits and breaking even, it’s the tender business pulling the profits down, for the last 25 years we are doing great in OEM and Tender but the trend is OBM in the next 10 years, supermarkets are using discountal modal, which means 20,000 skus they are shrinking to 5,000 SKU’s only 2-3 brands of condom they are allow in the supermarkets. We will not see any profit for the next 1-2 years from the OBM, for short term profit boost, maybe with our latex operational efficiency, USD higher, Brent Oil are going down, Latex price are sliding, more automation from our end, new ultra-thin products, we can produce same 003 as okamoto, these might see our profit increase for short term. In fact, only Karex is able to produce up to 60 sizes of condom while the others are normally 3, with the ultra-thin production, we can sell up to USD 0.06c / condom.

Any share buyback plans for company? As seen some shareholder had done some share buy back and some had also sold, can elaborate further on how CEO see about the company future is it under or over value currently and with current price will the company do some share buyback, also seen your cash is considerable.
We do not have any share buyback plans in fact, most of the cash is for expansion plan as we are still yet to utilizes, those funds will be mad at us why not using for expansion but a share buyback.

How the company spends the cash, there is significant decrease of 40m vs last year 86m?
Our yearly capex is at approx. 20m a year, we spend on upgrading to automation and setting new facilities like Thailand, Karex Polymer, our R&D a year is at 1.5-2m, we paid dividends 0.05 cents, and we bought another 20% of global protection for 7.5m, however we are still at healthy state as our company loans gearing are at 0.07 which is super low, there is still a lot banks facilities which are yet to be used, we have approx. 150m ready, and there is still 120m yet to be used. Some of the cash are actually at inventory as there is 1 large shipment is still at the ports awaiting government to check and will shipped out, this also affect why our Q1 profits are less, because this shipment hasn’t been shipped out. Karex results actually cannot be judge by quarterly Q1 and Q2 sales are normally higher, shipment delays do happen sometime due for government checking and also because some government spends before year end December when our financial end at June.

Side Information
-          Condom Material
Polyurethane – is less flexible than latex, it’s going to be more prone to breakage
Polyisoprene – ultra-thin, allergy-free, natural rubber, stretch much more, recover their original shape after being stretched, soft feeling.
Latex – Normal condom material
-          Results
Q1 (July-Sept) and Q2 (Oct-Dec) is higher compare to Q3 (Jan-Mar) and Q4 (Apr-Jun), government normally buys before year end December to utilize their remaining funds.
Karex results is not Recommend to view as quarterly, due to timing of product listing, licensing, shipment and certification.
-          Cost /condom
Normal Condom USD 0.03
Ultra-Thin (0.035-0.039 millimeters) USD 0.06
-          Acquisitions market
The company has made five acquisitions — US-based Line One Laboratories Inc and the UK’s Pasante Healthcare Ltd, among others, for US$8 million and £6 million (RM33.66 million) respectively.
These companies were bought not only for the condom brands, but for their distribution advantages as well. For instance, Pasante has a strong presence in retail and tender via its distribution system in every National Health Service (NHS) in the UK.
“Distribution is very important. You need to knock on their store and have a relationship with any particular NHS clinics to buy products from them,” he said.
For Line One, Karex acquired intellectual properties including the trademarks, patents and Food and Drug Administration approvals to market and distribute condoms under the established brands of Trustex, Kameleon and Fantasy in the US.
The company will buy the balanced 30% of Global Protection Corporation before June 2020, they are suggesting share swap in between.
-          Impressions on CEO
CEO presented an impressive presentation without any stress after results are declining for the past 1-2 years, in fact, more than 3 shareholders actually praise his attitude, calmness and confidence in his presentation to let shareholder know the company is in right track and CEO knowing the company well. 


Sunday, December 2, 2018

Supermax 2018 AGM摘要

Supermax 2018 AGM的摘要

- 市场占有率12%。
- 将专注重建和替换现有生产效率不佳的旧设施来提高效率和产能,时积极扩张产量。
- 朝向工业4.0自动化工厂。创办人郑金森举例曾参观新加坡相识工厂,其运作需要300名员工,而自身的自动化工厂只需60名员工。
- 产量为240亿只,未来2年投资3亿令吉来提升产能20%至290亿只。
- 现有超过140英亩土地可满足未来扩充寻求。 
- 目前的gearing只有0.28,表示还有很大的空间贷款扩充,但表示维持在0.75x gearing以下。 
- 基于手套商纷纷增产,可能出现Supply Glut的情况,Albert SayChuan Cheok(Non-Executive Independent Chairman)表示有在“暗示”同行不要大量增产,会免破坏市场的平衡。但也表示适当地增产是健康的,表示各公司正准备产能迎接更高的需求。
- 原料方面
40% 台湾和韩国


隐形眼镜CAGR 6.7%
-旗下品牌Aveo Hello已在65个国家出售
-目前以E-commerce方式销售 (各个地区如美国和日本已经开始,马来西亚上个月开始),相信陆续会看到Aveo的广告。

-接下来会注重提高各国市场参透率, 扩大产能与产品种类,其中包括硅胶隐形眼镜、散光隐形眼镜和彩装型隐形眼镜。地区方面则专注于刚拿到执照的日本市场。
- 市场定位 “Good quality with affordable price",可参考Aveo网页
- 问及是否能顺利进军中国庞大市场,Albert 表示需要较长的时间,因为中国程序上较为复杂(较Bureaucratic)但进度已经超过50%,希望2019会有好消息。
- 产量已从初期的4000万片增至7000万片,一旦中国执照入袋,产量可能飙增至2亿5000万片,更有望在长期达到10亿片目标。

- 大多数管理层都是1992至1997年间进入公司,至少有10 年经验。 
- 由于公司掌托人Datuk Seri Stanley Thai Kim Sim和Datin Seri Cheryl Tan Bee Geok还在处理本身的法律案件,2018稍微整顿了管理层人马。
- 2018年1月Cecile Jaclyn Thai和Tan Chee Keong 被委任为Executive Director。
2018年10月委任Albert SayChuan Cheok为Chairman, Non-Executive Independent Chairman。小编认为此人的来头不小,认为对公司接下来的发展会有很大的影响。

Supermax属于家庭企业。创办人Stanley Thai访问时曾说过“I build this business for my next generation.",猜测他做的决定都会从这个出发点考虑。在AGM时,Stanley Thai也不忘向股东们介绍两个女儿Cecile(目前是Executive Director)和Aurelia,还很自豪地告诉大家其手套品牌Aurelia就是以幼女的名字命名,可见对她们疼爱有加。在最近的管理层变动也看得出在为下一代铺路。
而小编认为刚刚入伍的Albert SayChuan Cheok就是事先安排好的军师,凭着在金融的丰富经验和多年的战绩,可为集团稳着阵脚。谈吐像Chinese Businessman风格的他在AGM时都有问必答,但是面对一些股东追问数据问题时,时不时还是需要助手提供数据。毕竟他说只要把事情做好,亮眼的数据自然会发生。可说他是不拘小节?还是对公司的数据还未熟悉呢?一切还有待验证也值得关注。