KUALA LUMPUR: Top Glove Corp Bhd is expected to overtake Hartalega Holdings Bhd to become the world’s largest nitrile glove manufacturer by volume by next year, according to its executive chairman Tan Sri Lim Wee Chai.

He said the group’s annual production capacity will increase by 60% to over 40 billion pieces of nitrile gloves by 2020

https://www.theedgemarkets.com/article/top-glove-set-be-worlds-largest-nitrile-glove-maker#:~:text=KUALA%20LUMPUR%3A%20Top%20Glove%20Corp,Tan%20Sri%20Lim%20Wee%20Chai.

https://www.worldometers.info/coronavirus/

New cases hitting 179,000

Top Glove's 47% Nitrile is bigger than Hartalega 97% Nitrile capacity cause Top Glove capacity is more than double of Hartalega.

DJF drop 30 points .. few seconds ago

The Glove's ASP and Spot Price Is Not Peak Yet.. another 100% and 50% to go.. ASP will go to USD 80 to 100... Spot Price will be USD150. Wait for the news update

Lack of factual data and basis to support the write up. Completely rubbish

@Cindy Top Glove FY2021 profit is very close to Public Bank. Bank's profit will drift lower due to bad debts written off and provision.

Those patient recover from covid virus only have antibody effective last for 2 month. Will coming vaccine can last for how long protection remain in ?

Glove demand is growing rapidly even at time of just screening test covid, which is less than 5% of population. What will glove demand for vaccination if 50% of the population needed for protection?

To screening less than 5% population now, it take almost 3 month in US, what will vaccination time to take for 50% population? The glove demand is not only to growth rapidly but also at prolong period once vaccination period begin.

Vaccine development mostly funded by Government globally, therefore, once develop, it will administered widely to almost entire population in the world. Therefore, once vaccine become available publicly, Gov may require all people to be vaccinated especially in US, European region.

To boost effective protection against covid, it may need multiple dose at interval time to upkeep protective antibody against covid.

https://klse.i3investor.com/insider/director/7113/16-Jun-2020/149627_538168976.jsp

12/6/2020 Tan Sri Lim Wee Chai bought 300,000 shares from Open Market at RM16.8173

This article lack of proper research.

Lol

https://www.channelnewsasia.com/news/asia/beijing-wholesale-market-temporarily-shut-new-covid-19-cases-12832006

@ Ravi Kumar.. Exactly,, Lol

Price move up because of anticipated hypergrowth in earnings. What kind of bubbles ??

Ebola and Top Glove .. 2014

https://www.thestar.com.my/business/business-news/2014/08/04/top-glove-advances-on-ebola-outbreak

New Ebola outbreak declared in Congo city that last saw the virus in 2018

By
Max Bearak
June 1, 2020 at 10:10 p.m. GMT+8
NAIROBI — Congo's health minister confirmed the discovery of a new Ebola case in the country's Équateur province, which last saw an outbreak of the highly deadly virus in 2018, ultimately killing 33 people there.

The province’s governor, Bobo Boloko Bolumbu, spoke on national radio earlier on Monday and said there were five likely cases and that four of those infected had already died. He said the cases were found in Mbandaka, the provincial capital, which is home to more than 1 million people and is an important port city at the confluence of the Congo and Ruki rivers, which are heavily plied for trade and transport.

The World Health Organization’s director general, Tedros Adhanom Ghebreyesus, said later on Monday that six cases had been identified by Congo’s health ministry. He said the WHO’s response was already underway.

AD

No cases of the novel coronavirus have been confirmed in Mbandaka, although more than 3,000 have been confirmed across Congo. The coronavirus and Ebola are unrelated. Ebola, which is endemic to Africa’s tropical rainforests, is transmitted only through contact with an infected person’s bodily fluids and manifests as a hemorrhagic fever accompanied in severe cases by vomiting and extensive internal bleeding.

Congo has grappled for almost two years with a separate Ebola outbreak in its northeastern provinces that has killed 2,272 people so far. In April, the end of that outbreak, the country’s worst, had been just days away from being declared over when new cases were found. The same region is also home to the world’s largest ongoing measles outbreak.

The worst outbreak of Ebola took place mainly across three West African countries between late 2013 and early 2016, when nearly 30,000 people were infected and more than 11,000 died.

Health workers operate within an Ebola safety zone in the Health Center in Iyonda, near Mbandaka, on June 1, 2018.
Health workers operate within an Ebola safety zone in the Health Center in Iyonda, near Mbandaka, on June 1, 2018. (Junior D. Kannah/AFP/Getty Images)
The new outbreak in Équateur would be Congo’s 11th since the virus was first identified in 1976. Experimental vaccines have proved effective in preventing the spread of Ebola, but no cure has been found. Different strains of the virus exist, and different outbreaks have had mortality rates ranging from 25 to 90 percent.

Rickety health infrastructure and mistrust in governments and foreign aid organizations have impeded Ebola responses both in Congo and West Africa. Locals have accused health officials and contracted suppliers of using well-funded responses to enrich themselves while imposing strict restrictions on movement and business. Congo’s government, however, has been lauded as quick to identify and contain Ebola in most previous outbreaks.

https://www.washingtonpost.com/world/africa/new-ebola-outbreak-declared-in-congo-city-that-last-saw-the-virus-in-2018/2020/06/01/33a9f958-a3ff-11ea-898e-b21b9a83f792_story.html

Since when Top Glove forum become advertisement board ???

up 31% to SGD 6.66

Top Glove so far up 28% in Singapore

Top Glove stands to make RM1Billion from 10% gloves inventory allocated for Spot Buy Deals at 2.5 to 3 times Selling Prices (US$75 - 90) higher that normal ASP (11 to 12 months waiting for delivery)

Top Gloves 10% Spot Buy Inventory is equal to 19% of Hartalega n 28% of Supermax's annual capacity. Top Glove-s size is unmatched and supply 26 to 28% of world gloves demands.

Hopefully can get 68... fast fast pushing down.. I am waiting

I hope very significant announcement coming soon

According to Maybank, Top Glove estimated profit for FY2021 is RM3.169 Billion..
EPS per share above RM1.00... current P/E multiple is 13 times only

HLT has greatest potential among penny Glove Manufcaturers. The cutting edge advantage is their engineering background on Glove Dipping Lines and Patent Holder for 3 Former Glove Dipping Technology

Top Glove is trading at Singapore Dollar 5.00+ now (@3.07 equivalent RM 15.35)

https://www.investing.com/equities/top-glove-corporation-bhd?cid=985815

RGTBHD.. new factory for medical products plan not submit yet...

Yes.. maybank estimate the Core Net Profit for FY2020 is RM1.135 / EPS 43.2 Cents and FY2021 Net PROFIT is RM3.169 Billion / EPS 117.7 cents

MayBank raised TP to RM20.00 Explosive and Massive Profit Jumps

For the case of Supermax, after QR released, so far the share price up more than 66%. We hope same scenario will happen to Top Glove.

CIMB New Target Price : RM16.50

Top Glove Corporation
Still has room to grow ASPs
■ We turn more positive on TOPG’s earnings prospects as we expect more
aggressive ASP increases, leading to stronger margin expansion.
■ With a longer order lead time of 11-12 months, TOPG is likely to be able to
push for higher ASPs given the current favourable supply-demand dynamics.
■ Reiterate Add, with a higher TP of RM16.50 (36.8x CY21 P/E).
More positive catalysts on pent-up demand for gloves
We gather that Top Glove’s (TOPG) current order lead time has further extended to 11-
12 months (vs. our assumption of 8 months previously), which gives TOPG a longer
order book visibility to up to May-Jun 2021F. This is given the favourable supply-demand
dynamics in the glove sector (owing to Covid-19). We understand that TOPG is
witnessing stronger demand from its existing customers and new customers (mainly endcustomers such as government and non-government organisations).
Inputting more aggressive ASP increases into our assumptions
With the strong global glove demand and longer order book visibility, we believe that
TOPG will be able to raise its ASPs more aggressively. In our previous forecast, we
expected TOPG to raise its ASPs by 5% per month between Jun and Oct 2020. In our
new forecast, we believe TOPG will be able to raise its ASPs by 10% per month from Jun
to Dec 2020. Based on our sensitivity analysis, a 1% increase in ASPs will lead to a 5.5-
7.2% increase in our FY20-22F EPS estimates.
Sufficient capacity to target ad-hoc orders
We gather that TOPG has been receiving more ad-hoc orders (10-20% of total glove
sales). These orders are mainly from non-government and government organisations and
typically have higher selling prices (premium of >30%) vs. recurring orders. In our view,
TOPG is able to cater to these ad-hoc orders as it has excess capacity, especially in the
latex segment (running at ~80% utilisation rate as at Feb 20 pre-Covid-19). Also, TOPG
will be able to leverage new glove capacity as its total production capacity will rise by 8%
(+5.9bn pieces p.a.) to 79.7bn pieces p.a. by end-2020F.
Raising our FY20-22F EPS by 7.8-44.9%
We raise our FY20-22F EPS by 7.8-44.9% due to: 1) higher ASP increases, and 2) better
profit margins from higher economies of scale and lower raw material prices (nitrile
butadiene and natural latex prices have declined 14% and 7% YTD, respectively).
Reiterate Add, with a higher TP of RM16.50
We retain our Add call on TOPG, with a higher TP of RM16.50, pegged to 36.8x CY21
P/E, in line with +2 s.d. from its 5-year mean vs. 32x previously (+1.5 s.d.). In our view,
TOPG, as the largest glove maker globally in terms of production capacity (73.8bn pieces
p.a.), is the key beneficiary of the favourable supply and demand dynamics in the glove
sector currently, allowing it to capitalise on pent-up demand for gloves due to Covid-19.

Based on FY20, Q2 result, the reported ASP (Average Selling Price) per 1000 pcs was US$ 20.00 against , AVC ( Average Cost Per 1000 pcs) at USD18.00. Profit Margin is around 10% or RM115mil.

We assume yearly production utilisation rate at 90% or 66Billion pieces (FY2020 capacity at 73.6B), USD exchange Rate at 4.3. The estimated profit as follow :-

If ASP at USD23/K pcs, 27% Net Profit Margin, yearly profit RM1.42 Billion, EPS at 55 cents.
If ASP at USD26/K pcs, 33% Net Profit Margin, yearly profit RM2.28 Billion, EPS at 88 cents
If ASP at USD29/K Pcs. 50% Net Profit Margin, yearly profit RM3.13 Billion, EPS at RM1.21

FY 2020 ( Sept 1, 2019 till Aug 31,2020): Estimated Profit RM920mil or EPS at 36 cts,
FY 2021 (Sept 1, 2020 till Aug 31,2021) : Estimated Profit RM2.7Billion or EPS at 106 cts,

1) At RM13.00, the share is traded at Forward P/E 36 times based on FY2020 earning estimation of EPS 36 cents per share. (PE 70 times is based on historical earnings)
2) If base on forward P/E of FY2021, it should be fairly value at RM20 (P/E 20 times) to RM30 (P/E 30 times). We need to have another 2 to 3 QR to confirm this valuation. This will be done by gradually upgrade of Target Prices by Investment Analysts.

Remark :-
1) The above estimate not taking into account of new capacity 7Billion (76.5B to 83.5B)
2) Lower Material Cost reduced by 7%
3) Capacity Utilisation based on 90% (Instead of 95 to 97% Guideline by Company)
4) Strong USD against MYR beyond 4.30
5) Strong Indication that second half of 2021, the ASP can go above USD30/K pcs

By next month it should reach RM16 and above after QR release... The major upsurge play and possible bonus issue 2 for 1

Share Prices Based on May 19 Closing..

Top Glove'share price a lot of catch up play from now till next QR (Tentatively June 18)

If we use annual capacity to make comparison between Top Glove and BIG 3 (Hartalega+ Kossan + Supermax), we may agree that Top Glove's share price is trading at 50% discount against BIG3 combined. Top Glove's share price is only half of BIG 3. ( RM10.48 Vs RM20.84 ).

With RM10.48 investment into Top Glove that has 91B capacity, we are actually making a good investment deal with 50% discount. Whereby you need to invest RM20.84 into BIG3 to get similar range of production capacity.

So, I believe eventually the share price of Top Glove will move faster to narrow the price gap with BIG3 when Top Glove releasing the QR report next month.

1)Top Glove 91.1Billion Vs 96.7Billion Pieces of Gloves (BIG 3 Combined)
2) Share Price :
Top Glove Vs BIG 3 (Hartalega + Kossan + Supermax)
RM 10.48 Vs RM 20.84 (RM9.01 + RM7.58 + RM4.25 )

Note :
Installed Capacity for Gloves Quantity :-
Top Glove ( by 2021 ) 91.1 Billion
Hartalega (by 2021 ) 38.5 Billion
Kossan 32.0 Billion
Supermax 26.2 Billion

Tomorrow show time for HLT

Tomorrow Top Glove will be up based on strong showing of Top Glove in SGX market today..up 14% now

Capacity is the King Maker. Eventually, we should see Top Glove's share price moving up faster with higher percentage rise as compare to the peers in Glove sector.

Repost >

If we use annual capacity to make comparison between Top Glove and BIG 3 (Hartalega+ Kossan + Supermax), we may agree that Top Glove's share price is trading at 50% discount against BIG3 combined. Top Glove's share price is only half of BIG 3. ( RM10.48 Vs RM20.84 ).

With RM10.48 investment into Top Glove that has 91B capacity, we are actually making a good investment deal with 50% discount. Whereby you need to invest RM20.84 into BIG3 to get similar range of production capacity.

So, I believe eventually the share price of Top Glove will move faster to narrow the price gap with BIG3 when Top Glove releasing the QR report next month.

1)Top Glove 91.1Billion Vs 96.7Billion Pieces of Gloves (BIG 3 Combined)
2) Share Price :
Top Glove Vs BIG 3 (Hartalega + Kossan + Supermax)
RM 10.48 Vs RM 20.84 (RM9.01 + RM7.58 + RM4.25 )

Note :
Installed Capacity for Gloves Quantity :-
Top Glove ( by 2021 ) 91.1 Billion
Hartalega (by 2021 ) 38.5 Billion
Kossan 32.0 Billion
Supermax 26.2 Billion

Market Cap as at May 19, 2020 :-
In terms of market capitalization is Top Glove RM26.88B Vs RM45.98B BIG 3 Combined

https://www.investing.com/equities/top-glove-corporation-bhd?cid=985815

https://www.thestar.com.my/business/2020/03/14/hlt-global-bets-on-new-technology

The King Maker in Glove Industry is Capcity..

Posted on May 19, 2020.

If we use annual capacity to make comparison between Top Glove and BIG 3 (Hartalega+ Kossan + Supermax), we may agree that Top Glove's share price is trading at 50% discount against BIG3 combined. Top Glove's share price is only half of BIG 3. ( RM10.48 Vs RM20.84 ).

With RM10.48 investment into Top Glove that has 91B capacity, we are actually making a good investment deal with 50% discount. Whereby you need to invest RM20.84 into BIG3 to get similar range of production capacity.

So, I believe eventually the share price of Top Glove will move faster to narrow the price gap with BIG3 when Top Glove releasing the QR report next month.

1)Top Glove 91.1Billion Vs 96.7Billion Pieces of Gloves (BIG 3 Combined)
2) Share Price :
Top Glove Vs BIG 3 (Hartalega + Kossan + Supermax)
RM 10.48 Vs RM 20.84 (RM9.01 + RM7.58 + RM4.25 )

Note :
Installed Capacity for Gloves Quantity :-
Top Glove ( by 2021 ) 91.1 Billion
Hartalega (by 2021 ) 38.5 Billion
Kossan 32.0 Billion
Supermax 26.2 Billion

In terms of market capitalization is Top Glove RM26.88B Vs RM45.98B BIG 3 Combined

If we use annual capacity to make comparison between Top Glove and BIG 3 (Hartalega+ Kossan + Supermax), we may agree that Top Glove's share price is trading at 50% discount against BIG3 combined. Top Glove's share price is only half of BIG 3. ( RM10.48 Vs RM20.84 ).

With RM10.48 investment into Top Glove that has 91B capacity, we are actually making a good investment deal with 50% discount. Whereby you need to invest RM20.84 into BIG3 to get similar range of production capacity.

So, I believe eventually the share price of Top Glove will move faster to narrow the price gap with BIG3 when Top Glove releasing the QR report next month.

1)Top Glove 91.1Billion Vs 96.7Billion Pieces of Gloves (BIG 3 Combined)
2) Share Price :
Top Glove Vs BIG 3 (Hartalega + Kossan + Supermax)
RM 10.48 Vs RM 20.84 (RM9.01 + RM7.58 + RM4.25 )

Note :
Installed Capacity for Gloves Quantity :-
Top Glove ( by 2021 ) 91.1 Billion
Hartalega (by 2021 ) 38.5 Billion
Kossan 32.0 Billion
Supermax 26.2 Billion

What is the size of Top Glove Group, The World No.1 Glove Maker ??

It is almost the sizes of BIG 3 Combined ( Hartalega + Kossan + Supermax ).
Top Glove 91.1 Vs 96.7 (BIG 3 Combined) Billion Pieces of Gloves

Installed Capacityfor Gloves Quantity :-
Top Glove ( by 2021 ) 91.1 Billion
Hartalega (by 2021 ) 38.5 Billion
Kossan 32.0 Billion
Supermax 26.2 Billion

What is the size Top Glove Group, The World No.1 Glove Maker ??

It is almost the sizes of BIG 3 Combined ( Hartalega + Kossan + Supermax ).
Top Glove 91.1 Vs 96.7 (BIG 3 Combined) Billion Pieces of Gloves

Installed Capacityfor Gloves Quantity :-
Top Glove ( by 2021 ) 91.1 Billion
Hartalega (by 2021 ) 38.5 Billion
Kossan 32.0 Billion
Supermax 26.2 Billion

What is the size Top Glove Group, The World No.1 Glove Maker ??

It is almost the sizes of BIG 3 Combined ( Hartalega + Kossan + Supermax ).
Top Glove 91.1 Vs 96.7 (BIG 3 Combined) Billion Pieces of Gloves

Installed Capacityfor Gloves Quantity :-
Top Glove ( by 2021 ) 91.1 Billion
Hartalega (by 2021 ) 38.5 Billion
Kossan 32.0 Billion
Supermax 26.2 Billion

What is the size Top Glove Group, The World No.1 Glove Maker ??

It is almost the sizes of BIG 3 Combined ( Hartalega + Kossan + Supermax ).
Top Glove 91.1 Vs 96.7 (BIG 3 Combined) Billion Pieces of Gloves

Installed Capacityfor Gloves Quantity :-
Top Glove ( by 2021 ) 91.1 Billion
Hartalega (by 2021 ) 38.5 Billion
Kossan 32.0 Billion
Supermax 26.2 Billion

WinnerWay... Good points. You are absolutely correct. Profit margin and Capacity Utilization Rate is improve and P/E ratio should adjust downward. So far, the issue of overvalue is never exist.