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The land to be developed by the major shareholders is more than 20 times the size of current Gets size. So in the event the business condition turn bad which one do you think the major shareholder will take care? Certainly not GETS.
The latest corporate proposal in bad for the minority shareholders. Gets is buying a minority stake in a company owned by the major shareholder at a high premium. The company actually owns a piece of land converted from agriculture to industrial land but can only be developed about two years later. The price Gets is paying is much higher than the land price in the much developed kamunting industrial estate. in the mean time the new shares issued will dilute the future earning of Gets.
The good days of glove counters is about to over. The glove price ASP has dropped from the peak of more than USD120 per carton to about USD40 now. it is still good margin compared to before pandemic but I think it will back to normal sooner than what we have thought of.
The NTA difference between Jun this year and last year is only RM0.17/share (after Ex bonus). The cash earned last year until now mostly distributed as dividend already. So if ASP is to go back to pre pandemic level next year then the reasonable target price of TG should be around RM3.00(=share price on 31/3/2020+50%), after taking into consideration the EPS for the next 3 qtrs & expected excessive supply in the coming 3 yrs after the rapid capacity expansion last year and this year
