Top 5 Malaysia Stocks Traded on POEMS in September 2020 October 16, 2020

Here are September’s top 5 traded Malaysian stocks on Phillip’s Online Electronic Mart System (POEMS), based on gross market values traded. We hope the list will give you a view of one of Malaysia’s top-performing sectors – the glove sector – as we expect continued demand for rubber gloves as the pandemic rages on.

From the 5th position up are:

5^th: Bintai Kinden Corp Berhad (BURSA: 6998)

Source: Bloomberg

Bintai Kinden specialises in mechanical and electrical engineering services. These include instrumentation, building automation and other multi-discipline industrial services¹.

In August 2020, Bintai Kinden signed a memorandum of understanding with Institut Jantung Negara (IJN) to collaborate in the commercial development of a COVID-19 vaccine, based on Bintai Kinden’s existing partnership with US biotech firm, Generex Biotechnology Corp [GNBT.US]. The agreement is for the development, manufacturing and commercial registration of Generex’s COVID-19 vaccine. This vaccine is currently in the pre-clinical stage of development. It is pending approval from the US FDA, before moving on to human clinical trials and manufacturing.

If the commercial development is successful, Bintai Kinden could be the first to introduce a COVID-19 vaccine in Malaysia. Its share price reflects investors’ expectations, increasing 491% YTD to RM0.68.

4^th: Iris Corporation Berhad (BURSA: 0010)

Source: Bloomberg

Iris provides technology consultation services, hardware and software to airlines and airports for their security systems. Its share price has jumped by 100% YTD, to a high of RM0.435 on 6 August 2020³.

In September, Iris signed a Letter of Intent (LOI) with the India Security Press for the supply of RM15mn electronic contactless inlays and operating systems. These will be used for making Indian e-passports that are International Civil Aviation Organization-compliant. Worth US$27.54mn, the deal is expected to propel Iris to the global stage for e-passport production⁴.

3^rd: JCY International Berhad (BURSA: 5161)

Source: Bloomberg

Coming third was JCY International, a leading component supplier and contract manufacturer of data storage in Malaysia. Revenue in Q1 2020 climbed 4% YoY⁵ and share price has increased more than 160% YTD⁶.

The reason? Movement control in Malaysia bumped up demand for personal computers and laptops for use at home. This in turn jacked up demand for hard disk drives. We can expect the momentum to continue as work-from-home arrangements become the norm.

2^nd: Supermax Corporation Berhad (BURSA: 7106)

Source: Bloomberg

Supermax, a leading Malaysian latex-glove maker, produces over 24bn pieces of gloves per year and exports to more than 160 countries. Revenue in Q2 2020 was up 38.59% from 2019 levels⁸.

COVID-19 has created unprecedented demand for personal protection equipment (PPE), especially latex gloves, from almost all sectors. Reflecting this, Supermax’s share price has jumped over 1,000% YTD! As COVID-19 cases continue to spike, further demand and sales of latex gloves are expected⁹.

1^st: TopGlove Corporation Berhad (BURSA: 7113)

Source: Bloomberg

Finally, dual-listed (SGX: BVA) TopGlove topped the list¹⁰! It is the world’s biggest manufacturer of nitrile gloves, with exports to over 195 countries. Nitrile gloves differ from latex gloves in that they are latex-free.

Q2 2020 revenue was up 50.72% from last year’s levels¹¹. This was contributed by the mass production of face masks from April 2020 onwards on the back of increased demand for personal protective equipment (PPE). PPE includes not only latex gloves but also facial masks.

Demand for both is unlikely to subside anytime soon. Backed by continued expansion of its own supply chain and delivery systems, revenue and growth look set to increase further in the near future.

Price charts of Supermax Corporation Berhad and TopGlove Corporation Berhad

To sum up

As COVID-19 continues to buffet economies and companies worldwide, glove makers are expected to remain popular. Existing players are already working 24/7 to cater to demand.
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