Taking a quick look at a very small cap listed company on Bursa Malaysia – Superlon

News Update (back in 2016): CLIMATE change is a menace but it also presents a business opportunity for the likes of Superlon Holdings Bhd, a low-profile thermal insulator manufacturer that is expected to finish its financial year ending April 30, 2016, with record-breaking revenue and profit.

According to the group’s executive director Liu Han-Chao, there is growing demand for air conditioners and, in turn, the thermal insulation products manufactured by the company as many countries around the world are increasingly hit by extreme weather.

“We hate to say it but global warming is actually good for our business. When the weather is hot, people need air conditioning all the time. There will always be demand for our products because most countries in Southeast Asia do not experience winter,” he tells The Edge in his first face-to-face media interview.

Superlon, which is owned by a Taiwanese family and is based in Klang, produces 7,200 tonnes of thermal insulation material a year. The material is a major component of the heating, ventilation, air conditioning and refrigeration (HVAC/R) system for residential, commercial and industrial buildings.

http://www.theedgemarkets.com/article/superlon-sees-opportunity-global-warming

Technically, are we seeing a recovery? 

Evidence of possible price rebound is present via the reversal in MAs and MACD. Support is seen at RM1.05 whilst next resistance zone is around RM1.75.

Super_TA_Jun 18.png

Fundamentally, any support?

Simple desktop analysis (with assumed margin of safety of 25%) – desktop indicative equity value is approx. RM1.39 which is slightly above its current share price of RM1.34 per share.

FA.png

Current financial position : Net cash position

BS.png

Prospects?

Management thinks it is ok for year ending 30 Apr 2018:

Prospects.png

Are insiders buying?

Some recent buy-ins. A stark contrast if compared to few months back.

SHF changes.png

DISCLAIMER: THIS IS A PERSONAL BLOG AND SHALL NOT BE RELIED IN WHATSOEVER MANNER BY ANYONE. ALL ARTICLES CONTAINED IN THIS SITE ARE STRICTLY FOR INFORMATION AND ILLUSTRATIVE PURPOSES ONLY AND DOES NOT PURPORT TO SHOW ACTUAL RESULTS. IT IS NOT, AND SHOULD NOT BE REGARDED AS INVESTMENT ADVICE OR AS A RECOMMENDATION REGARDING ANY PARTICULAR SECURITY OR COURSE OF ACTION. SOURCES USED IN THIS SITE HAVE NOT BEEN INDEPENDENTLY VERIFIED FOR ACCURACY, COMPLETENESS AND TIMELINESS. YOU SHOULD SEEK INDEPENDENT AND PROFESSIONAL INVESTMENT ADVICE IN REGARD TO YOUR INVESTMENT DECISIONS. THE AUTHOR MAY HOLD POSITIONS IN THE SECURITIES MENTIONED IN THE ARTICLES.