ESCERAM ICE-CREAM updated 1

Today i had been watching live, this ESCERAM climbing from 0.425 up to 0.550. I had never thought that this ESCERAM will be so highly dangerously explosive... And today ESCERAM had just released their Q1 Result for 2016. Not to forget there are some surprises in their Annual Report 2015 announced last week Friday.

Well, congrats to those who had been riding on the wind from the day i recommended this stock. So, you must be wondering, what's next? When should i take profit? Hear me out, i might provide you some information.

1) Fundamental Analysis:

The net profit of 2016 had increased 30.85%, from RM1,154k to RM1,510k. For me, this is a significant increase, not many company can go as high as that percentage[2]. In the Q Report, it is mentioned that there is improvement in the operations performance. At the same time, the net cash of the company had been growing linearly. Up to date, the ESCERAM is a net cash company with RM25,277k cash in hand.

The management did mention that the fluctuation in exchange rates may pose challenges to the operation due to increase in various essential cost components. However, they still expect a favourable performance in the coming year as they will continue to explore opportunities to enhance and improve the performance.

In the Annual Report 2015, Mr Chairman, Rithauddin stressed on the company will further generate savings and improve efficiencies by giving priority to factory automation and machinery upgrades. Similar to last year, they will be focusing in reducing wastage to reduce inefficiencies, improving capacities and capabilities despite facing mounting cost pressure. ESCERAM did have cash, trade receivables and trade payables in USD, Thai Baht and Euro while the exchange rate used in the annual report is 3.67, 0.11 and 4.02 respectively.

ESCERAM ICE-CREAM

ESCERAM sounds like ice-cream.. Can they perform as a MAGNUM ice-cream or just a normal ice-cream?

Formers

ESCERAM is a company which produces ceramic formers subscribed by the glove industry throughout Malaysia. Initially, they started with producing formers for examination gloves, but now they have expanded the range to surgical, household, industrial, balloons and speciality formers. Take a look at this video, i think you will understand what formers are and a process to produce gloves,  https://www.youtube.com/watch?v=A9PMs_N33fU.

Having operations and factories in Malaysia and Thailand, ESCERAM had 15 years of experience and produced and sold more than 30 million formers.[1] Why ceramic hand formers? They are for continuous industrial use under heavy-duty conditions, to withstand the complex processes which involving heat and chemicals to produce gloves, the formers need to have a high degree of resistance to industrial chemicals, exceptional mechanical strength, high thermal shock resistance and a very narrow of dimensional fluctuations. The types of gloves vary and have different processes.