ES Ceramics’ new shareholders remain unknown
ES Ceramics Technology Bhd, which makes ceramic moulds for the rubber glove industry, appears to be in unknown hands given the company’s opaque shareholding.
In early November, Datuk Kamal Y P Tan disposed of two blocks of shares in ES Ceramics. On Nov 4, he hived off 48.25 million shares, or 10.49% of the company, followed by another 47.18 million shares, or 10.25%, the next day.
A month before that, Tan held 105.26 million shares, or 23.39% of ES Ceramics, following a bonus issue of 236.56 million shares with free warrants on the basis of one bonus share and warrant for every existing share held.
Although a month has passed since he sold the two blocks of shares, there has been no indication as to who acquired them, or if the new shareholders elected to break up the block of 20-plus per cent into blocks smaller than 5% to avoid disclosure.
As the transactions were not even captured on off-market trades on Bloomberg, the price at which Tan exited is not known. It is worth noting that he had been a substantial shareholder of the company for more than 12 years, or since September 2008, when he surfaced with 6.06 million shares or an 11.44% equity interest in ES Ceramics.
Given the current investment interest in rubber gloves and industries related to healthcare or its products, Tan’s disposal of the bulk of his shareholding is rather puzzling.
The Edge did not seek comment from ES Ceramics as the change is at the shareholding level and does not involve the company.
An industry observer notes that there is much speculation over who acquired the block, but adds that it is difficult to say for certain why no substantial shareholder has emerged.
A lot of the interest in ES Ceramics and its shareholding also stems from the sudden gains in its share price. For instance, the counter shot up more than 220% from late July to early August and by more than 50% in late September to early October. On both occasions, the surges were followed by swift falls.
The company’s second-quarter financial performance, which will be announced in January, is expected to be stellar, according to speculation.
ES Ceramics is an interesting company given the current craze over glove stocks and Covid-19-related counters. It has a plant in Kawasan Perindustrian Silibin in Ipoh, Perak, and another facility in Songkhla, Thailand. Its ceramic formers, described as ceramic moulds, are dipped into latex to manufacture rubber gloves, giving the gloves their requisite shape.
According to its website, ES Ceramics began operations in 1998 producing formers for examination gloves, but has since expanded into formers for surgical, household and industrial gloves and balloons, among others.
An industry veteran tells The Edge that each ceramic former has a lifespan and can be utilised for between 40,000 and 50,000 dips, depending on various factors.
A source puts ES Ceramics’ current production capacity in Malaysia and Thailand at about 400,000 formers a month, or 4.8 million formers a year. He says there is only a handful of players with scale that produce formers for rubber gloves. Apart from ES Ceramics — the only publicly traded rubber glove former company — the other players include CeramTec Innovative Ceramic Engineering (M) Sdn Bhd, MediCeram Sdn Bhd and FormTech Engineering (M) Sdn Bhd.
It is difficult to gauge the industry’s production capacity in relation to the manufacture of rubber gloves. But in an August filing with the local bourse pertaining to its bonus issue, ES Ceramics said, “MARGMA (Malaysian Rubber Glove Manufacturers Association) had projected the demand for rubber gloves to reach approximately 300 billion pieces in 2020 with an annual growth of 12%. However, the current outbreak of Covid-19 has resulted in a 100% surge in demand globally in the first few months of 2020.
“The world’s largest rubber glove producer (that is, Malaysia), which contributes nearly 63% of global supply, has revised its estimated supply to approximately 220 billion pieces in 2020 amid the current scenario, which is much higher than the previously estimated number of approximately 188 billion pieces.”
Based on the association’s figures, back-of-the-envelope calculations indicate an overall global demand of 349.2 billion pieces, or 58% higher than anticipated.
ES Ceramics’ financials have shown a marked improvement, albeit from a low base. For the three months ended August, it posted a net profit of RM3.2 million on the back of RM11.94 million in revenue. Earnings per share amounted to 1.5 sen. In the corresponding period last year, it made a profit of RM1 million on revenue of RM8.75 million.
As at end-August, its cash and cash equivalents amounted to RM26.78 million, with negligible liabilities. Retained profits were healthy at RM24.76 million and the company’s cash flow from operating activities for the three months ended August stood at RM3.64 million.
In notes accompanying its financials, ES Ceramics said the better results were “in tandem with the increase in revenue due to high demand for formers as well as improved production activities”. It added, “The prospects for growth in the rubber glove industry are positive as the industry is expected to continue to be driven by the growth in the global and domestic healthcare industry as one of the essential items in medical supplies.”
ES Ceramics closed at 49 sen last Thursday, which translates into a market capitalisation of RM225.4 million. Year to date, the stock is up more than 350%, a sizeable appreciation, prompting speculation and interest in the buyer of Tan’s block of shares.
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独家】卡玛尔逾20%股权转给家人 陈氏家族没退出ES陶瓷
独家报道：谢静雯
（吉隆坡23日讯）前阵子无预警脱售ES陶瓷（ESCERAM，0100，创业板）大批股权的拿督卡玛尔·陈澄清，他只是将股权转给家人，无意退出这家投资超过12年的上市公司。
“我只是把股权转移给孩子和家人，我们也不是要退出这家公司。”久未露面的卡玛尔·陈接受《南洋商报》独家访问时特别澄清。
现年69岁的卡玛尔·陈是在2009年加入ES陶瓷董事部，但在去年11月突然脱售20.74%的股权，卸下大股东的身分，但却未公布买家身分，引发市场热议陈氏家族是否退场，并揣测谁是新大股东。
继去年脱售大批股权后，卡玛尔·陈在今年1月29日，以58仙的价格收购了2500万股或5.43%的股权，但当天就将之转手卖出，让人一头雾水。同日，他的儿子陈善光以同样价位，收购了ES陶瓷4700万股或10.2%的股权，崛起为大股东之一，但还有一批股权没公佈接盘人身份。
卡玛尔·陈受访时强调说，那批没有持有人身分的股权，是落在陈善光以外的家人手上，并非转售给外人：ES陶瓷“没有市场揣测的新幕后股东”。
根据条例，上市公司需披露持股5%以上的股东身分。因此，ES陶瓷仅公布了持有10.2%的陈善光，未有公布其他持股权低于5%的陈氏家族成员。
既然股权转移给第二代，他们会参与公司运作吗？
不参与公司运作
“我们（陈家）不会参与任何ES陶瓷的运作，我们相信现有专业管理团队的能力，且会继续持有这家前景良好的公司。”
ES陶瓷专制陶瓷模具，尤其是橡胶手套模具。随着手套需求因2019冠状病毒病而暴涨，也带动了ES陶瓷的模具需求。
在最新公布的2021财年第三季财报中，该公司营业额按年飙升1.52倍至2260万8000令吉；净利更是大增11.96倍至846万7000令吉。
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