Since Budget 2021 Malaysia just announced yesterday, I guess many one hoping some stock will be benefited from this budget, just like me hoping some sector will be benefited. After read through some of the summary of the budget, actually I don't really notice anything special.

I make a call and see how is my uncle opinion on the budget.

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So below are some of our conversation :

Me: Hi Uncle ! How are you lately?
Him: So far so good!

Me: I just want to ask your views on the budget 2021, any stock might be benefited?
Him: Well, if you ask me, this budget don't seem to be very different compare to last few years. No new mega projects, nothing actually attractive that worth to mention.

Me: Oh that's sound bad, I still hoping some stock may benefited.
Him: In fact, what everyone been waiting for especially banker did not happen right, I refer to windfall tax for gloves. So gloves company should consider as the big winner for this budget.

Me: Yes, I already notice many groups chat, facebook group celebrating that no windfall tax, gloves should fly. Even news portal also write gloves are the big winner. But I though they have to spend some money for Donation right?
Him: That donation is one off, so do not impact too much. And it's only by the Big 4, TOPGLOV, HARTA, SUPERMX and KOSSAN. Many have get the wrong ideas, if you think in depth, actually the smaller gloves company like CAREPLS, COMFORT, RUBEREX is the real Big winner, as they also enjoying super normal profit, yet don't need to make donation.  

Me: That's so true, I will keep that in mind. How do you think vaccine stock? Since budget did mention spending 3 billions for vaccine.
Him: To me, vaccine stock still too early to say, but actually their earning already can be estimated.

Me: Oh really?
Him: Lets count this way, malaysia population roughly 32 millions. Let say the cost as per Khairy mention RM 90, so that's almost cost RM 3 billions.

Me: Oh that's mean actually this 3 billions government is allocated for everyone.
Him: Yes, government allocation for this mean when vaccine ready, we can go to general hospital to get the vaccine.

Me: Ermm that's mean all the vaccine stock that have sign partnership with different vaccine manufacturer will only gain by selling to private hospital and clinics.
Him: Yes you are right, so those that do not have capability to supply to government, then only can sell to private. Lets say half of the citizen go to private hospital for the covid vaccine, then if will be 1.5 billions. If they manage to sell at higher price, then they can earn more.

Me: So far from what we know only few company announce to have partnership for vaccine, like KANGER, SOLUTN, BINTAI and HWGB. But only KANGER and SOLUTN is dealing with CHINA vaccine which seems to be very soon can be use.
Him: Yes So we can roughly know the vaccine contribution for company earning just roughly below 3-5 billions. Unless need to take multiple time. If they only focus Malaysia market, then this business is way too small compare to Gloves.

Me: Thats seems legit. I guess mostly people will go for general hospital or china vaccine, since so far never heard any side effects compare to the USA one.
Him: Yes, so those stock that dealing with CHINA vaccine, have better chance than others.

Me: Ok uncle! Good night uncle !

After the quick discussion, I get a conclusion that gloves stock remain lucrative business since no more windfall tax, especially smaller gloves company like CAREPLS, COMFORT, RUBEREX because they not involve in donation. And if let me choose vaccine stock, I would consider Kanger and Solutn.

Above sharing is not to telling you to buy or sell, to buy or sell depends on your own judgement.