Holistic View of ES Ceramics with Fundamental Analysis & iVolume Spread Analysis (iVSAChart)

Author: Joe Cool   |   Publish date: Sun, 12 Jun 2016, 10:43 PM 

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Profile

·      Listed on 28 September 2005

·      A component of the FBM ACE Index under the Industrial Specialties industry

·      Market Capitalisation of RM 54 million

·      Financial Year End 31 May 2016

·      Next quarterly announcement (4^th Quarter) due on July 2016

Background and Core Business

·      Designers and manufacturers of ceramic formers, used mainly in the rubber glove manufacturing industry

·      The use of ceramic formers has now been expanded to surgical, examination gloves, industrial and household product manufacturing

·      ES Ceramics’ growth has been in tandem with the rubber gloves industry

Financial Brief and Ratios (Historical)

ES Ceramics (0100.KL)	FY 2015 (RM’000)
Revenue (RM’000)	24,951
Net Earnings (RM’000)	5,592
Net Profit Margin (%)	22
EPS (RM)	0.028
PE Ratio (PER)	19
Dividend Yield (%)	0
ROE	16.9
Cash Ratio	3.841
Current Ratio	6.336
Debt to Equity Ratio	N/A

·      Revenue is growing y-o-y with substantial forecasted growth for 2016 and this information has probably been priced-in based on the iVSAChart that we will review below

·      PER is average for a growth company like ES Ceramics

·      No dividends have been declared in the past

·      The company derives its financing mainly from equities

iVolume Spread Analysis (iVSA) & comments based on iVSAChart software – ES Ceramics

·      This is the 1-year weekly chart for ES Ceramics dating back to June 2015

·      Signs of Strength (green arrows) were detected by iVSAChart at the beginning of Oct 2015 culminating in a breakout from the RM0.36 resistance level. Since then, this stock has been trending upward, with more Signs of Strength appearing during retracements

·      Attempts to mark up prices in Apr and May 2016 met with heavy supply around RM0.58 level

·      Currently, ES Ceramics is moving sideways with low volume, suggesting further accumulation

·      Should more Signs of Strength be detected at this juncture, it would herald higher prices to come

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This article only serves as reference information and does not constitute a buy or sell call. Conduct your own research and assessment before deciding to buy or sell any stock.