Top Glove - New Peaks Ahead

Author: HLInvest Publish date: Fri, 18 Sep 2020, 10:36 AM

Top Glove’s FY20 core PATAMI of RM1.95bn (+410% YoY) was above ours and consensus expectations. Declared final dividend of 8.5 sen per share. FY20 revenue grew +51% YoY due to higher sales volumes (+17%) that was driven by the Covid-19 pandemic that brought in stellar demand and ASPs paired with improved cost efficiency. We remain optimistic on FY21 due to continuous high expectation of global glove demand (FY21: +25%) and rising ASPs. Raise FY21- 22 forecasts by +82%/+68%. TP is increased from RM10.44 to RM13.00 (16x PE on FY21 EPS). Maintain BUY along with it as our top sector pick.

Wah, SGX TG hit $3, tomolo up 1 ringgit opening..

Tan Sri LWC interview on 8TV Money Matters 11.09.2020,

- Indicate that next Thurs market cap will likely exceed Public & Maybank

- Be patience, results will be good.

- on competition, gloves is competitive as it is global biz. There r 250 factories globally, but left 20% only

-New entrant to market is natural, but whether they can sustain after 3 years is another question.

-Waiting period .. nitrile 620 days

-emphasising on automation and digitalization in production. TG has 6 R&D centres, with 750 staff, of which 300+ are engineer. 30+ r PHD

-gloves generally up 10% to 15%, but now at 50% during pandemic

-now is 5 cycles in history, but cycle is different

-aim to list in HK next year

-aim to break into Fortune 500 companies after Petronas ( but not mentioned which yr)

-he is now 60 yrs old, want to live till 120 yrs old

- he considers all his 20k staff as his children. Whoever better will lead, not necessary his sons.

Malaysia's glove makers struggle to meet booming demand

Malaysian manufacturer Top Glove, which describes itself as the world's biggest producer of rubber gloves, said it is seeing orders for 11-12 billion a month, compared with 4.5 billion prior to the pandemic.

As a result, customers must now wait nearly 600 days for their orders to be filled, compared with a normal delivery time of 30-40 days, said chief executive, Lim Wee Chai.

US-based Allied Market Research estimates that the global disposable gloves market amounted to US$6.8 billion in 2019, and is expected to nearly triple to US$18.8 billion by 2027.

https://www.nst.com.my/world/world/2020/09/622064/malaysias-glove-makers-struggle-meet-booming-

MAYBANK Research maintain BUY on TOP GLOVE. Many rabbits in the hat. TP RM9.53.

https://klse.i3investor.com/blogs/gloveharicut/2020-09-14-story-h1513490332-MAYBANK_Research_maintain_BUY_on_TOP_GLOVE_Many_rabbits_in_the_hat_TP_R.jsp

STI - TG oredi S$2.80

UOB Kay Hian maintain ‘Buy’ for Top Glove.
TP : RM12.30

https://messenger.i3investor.com/res/msg/img/27922/2020/9/_20200904084701.jpg

The global disposable gloves mark o et was valued at $6,858.07 million in 2019, and is expected to reach $18,885.88 million by 2027
Disposable Gloves Market by Type (Natural Rubber gloves, Nitrile Gloves, Vinyl Gloves, Neoprene, Polyethylene and Others), Form (Powder and Non Powder) and Application (Medical [Examination and Surgical] and Non-Medical [Food Service, Clean Room and Industrial]): Global Opportunity Analysis and Industry Forecast, 2020&ndash 2027

New York, Sept. 02, 2020 (GLOBE NEWSWIRE)

https://www.globenewswire.com/news-release/2020/09/02/2087496/0/en/The-global-disposable-gloves-market-was-valued-at-6-858-07-million-in-2019-and-is-expected-to-reach-18-885-88-million-by-2027.html

WHO warns coronavirus vaccine alone won’t end pandemic: ‘We cannot go back to the way things were’

The virus has infected more than 22.7 million people worldwide and killed at least 794,100 in more than seven months, according to data compiled by Johns Hopkins University. There are at least 30 potential vaccines currently in clinical trials, according to the WHO, but there is no guarantee they will be safe and effective, he said.

Even though human trials for potential vaccines are progressing, scientists say key questions remain. Covid-19 was discovered in December. While numerous research papers and studies have been produced on the virus, scientists still don’t fully understand how it affects the body or how well someone is protected from reinfection after recovering.

Earlier this month, Tedros said there was no “silver bullet” to the coronavirus and “there might never be.”

PUBLISHED FRI, AUG 21 202011:53 AM EDTUPDATED 23 MIN AGO

WHO warns coronavirus vaccine alone won’t end pandemic: ‘We cannot go back to the way things were’
The virus has infected more than 22.7 million people worldwide and killed at least 794,100 in more than seven months, according to data compiled by Johns Hopkins University. There are at least 30 potential vaccines currently in clinical trials, according to the WHO, but there is no guarantee they will be safe and effective, he said.

Even though human trials for potential vaccines are progressing, scientists say key questions remain. Covid-19 was discovered in December. While numerous research papers and studies have been produced on the virus, scientists still don’t fully understand how it affects the body or how well someone is protected from reinfection after recovering.

Earlier this month, Tedros said there was no “silver bullet” to the coronavirus and “there might never be.”

Add me please. Thank you.

Windfall tax was debated on Parliament yesterday. For now there is no intention to implement the windfall tax.

@yttihs kindly add me to the group pls . Thank you.

Wah, no wonder Tan Sri family spend so many $millions to buy back TG shares.

Here's the summary of some interesting questions from the EGM

Aug to Sept - ASP increased 20-40% depending on the type of gloves
TG allocating 30% for spot orders
Target to resolve CBP detention issue by the end of August
Expect to pay a final dividend which will be higher
Average TP from all the analyst is 31.13
Average PAT expectation from all analyst is 1.4b
Windfall tax was debated on Parliament yesterday. For now there is no intention to implement the windfall tax.

https://klse.i3investor.com/blogs/gloveharicut/2020-08-18-story-h1512392681-TOPGLOVE_EGM_Update_by_yttihs.jsp

Wah, Tan Sri and family spending millions again to buy back TG shares. They must be very sure next qtr results super kilat lah..

Be patient, follow TG bosses. They know the demand for gloves very high even with vaccine. Order already full until next year. So results must be very good lah.

Announced Date Change Type Shares Name
12 Aug 2020 11 Aug 2020 Acquired 200,000 FIRSTWAY UNITED CORP
12 Aug 2020 12 Aug 2020 Acquired 200,000 FIRSTWAY UNITED CORP
12 Aug 2020 11 Aug 2020 Acquired 800,000 MR LIM HOOI SIN
12 Aug 2020 11 Aug 2020 Acquired 800,000 PUAN SRI TONG SIEW BEE
12 Aug 2020 11 Aug 2020 Acquired 800,000 MR LIM JIN FENG
12 Aug 2020 11 Aug 2020 Acquired 800,000 MR LIM HOOI SIN
12 Aug 2020 11 Aug 2020 Acquired 200,000 MR LIM HOOI SIN
12 Aug 2020 12 Aug 2020 Acquired 800,000 MR LIM HOOI SIN
12 Aug 2020 12 Aug 2020 Acquired 200,000 MR LIM HOOI SIN
12 Aug 2020 11 Aug 2020 Acquired 800,000 PUAN SRI TONG SIEW BEE
12 Aug 2020 11 Aug 2020 Acquired 200,000 PUAN SRI TONG SIEW BEE
12 Aug 2020 12 Aug 2020 Acquired 800,000 PUAN SRI TONG SIEW BEE
12 Aug 2020 12 Aug 2020 Acquired 200,000 PUAN SRI TONG SIEW BEE
12 Aug 2020 11 Aug 2020 Acquired 800,000 TAN SRI DR LIM WEE CHAI
12 Aug 2020 11 Aug 2020 Acquired 200,000 TAN SRI DR LIM WEE CHAI
12 Aug 2020 12 Aug 2020 Acquired 800,000 TAN SRI DR LIM WEE CHAI
12 Aug 2020 12 Aug 2020 Acquired 200,000 TAN SRI DR LIM WEE CHAI
12 Aug 2020 11 Aug 2020 Acquired 800,000 TAN SRI DR LIM WEE CHAI

Don’t worry about vaccine, if you don’t follow KYY then follow Tan Sri lah, next Qtr results must be super good.

TAN SRI DR LIM WEE CHAI spend more than RM50 million to buyback TOPGLOV share.

https://klse.i3investor.com/blogs/gloveharicut/2020-08-12-story-h1511677631-TAN_SRI_DR_LIM_WEE_CHAI_spend_more_than_RM50_million_to_buyback_TOPGLOV.jsp

Don’t worry about vaccine, if you don’t follow KYY then follow Tan Sri lah, next Qtr results must be super good.

TAN SRI DR LIM WEE CHAI spend more than RM50 million to buyback TOPGLOV share.

https://klse.i3investor.com/blogs/gloveharicut/2020-08-12-story-h1511677631-TAN_SRI_DR_LIM_WEE_CHAI_spend_more_than_RM50_million_to_buyback_TOPGLOV.jsp

Don’t worry about vaccine, if you don’t follow KYY then follow Tan Sri lah, next Qtr results must be super good.


TAN SRI DR LIM WEE CHAI spend more than RM50 million to buyback TOPGLOV share.

https://klse.i3investor.com/blogs/gloveharicut/2020-08-12-story-h1511677631-TAN_SRI_DR_LIM_WEE_CHAI_spend_more_than_RM50_million_to_buyback_TOPGLOV.jsp

See how much they sapu already. Steady lah!

11 Aug 2020 Acquired 200,000 FIRSTWAY UNITED CORP
12 Aug 2020 Acquired 200,000 FIRSTWAY UNITED CORP
11 Aug 2020 Acquired 800,000 MR LIM HOOI SIN
11 Aug 2020 Acquired 800,000 PUAN SRI TONG SIEW BEE
11 Aug 2020 Acquired 800,000 MR LIM JIN FENG
11 Aug 2020 Acquired 800,000 MR LIM HOOI SIN
11 Aug 2020 Acquired 200,000 MR LIM HOOI SIN
12 Aug 2020 Acquired 800,000 MR LIM HOOI SIN
12 Aug 2020 Acquired 200,000 MR LIM HOOI SIN
11 Aug 2020 Acquired 800,000 PUAN SRI TONG SIEW BEE
11 Aug 2020 Acquired 200,000 PUAN SRI TONG SIEW BEE
12 Aug 2020 Acquired 800,000 PUAN SRI TONG SIEW BEE
12 Aug 2020 Acquired 200,000 PUAN SRI TONG SIEW BEE
11 Aug 2020 Acquired 800,000 TAN SRI DR LIM WEE CHAI
11 Aug 2020 Acquired 200,000 TAN SRI DR LIM WEE CHAI
12 Aug 2020 Acquired 800,000 TAN SRI DR LIM WEE CHAI
12 Aug 2020 Acquired 200,000 TAN SRI DR LIM WEE CHAI
11 Aug 2020 Acquired 800,000 TAN SRI DR LIM WEE CHAI

See how many millions shares TG management bought. Why sell???

TopGlove_Announcement_Changes_in_Substantial_Shareholders_Interest_12082020_LJF.pdf
TopGlove_Announcement_Changes_in_Substantial_Shareholders_Interest_12082020_LHS.pdf
TopGlove_Announcement_Changes_in_Substantial_Shareholders_Interest_12082020_TSB.pdf
TopGlove_Announcement_Changes_in_Substantial_Shareholders_Interest_12082020_LWC.pdf
TopGlove_Announcement_Changes_in_Directors_Interest_12082020_LHS.pdf
TopGlove_Announcement_Changes_in_Directors_Interest_12082020_TSB.pdf
TopGlove_Announcement_Changes_in_Directors_Interest_12082020_LWC.pdf

People sell but TS Lim and management collect millions of shares cheap cheap. Have confidence in TG lah......

Huh, test only on 38 people and approve the vaccine. Like that also can ah???

::::::::::::;

Vladimir Putin's coronavirus vaccine 'was approved after tests on only 38 people' and 'causes side-effects including fever, pain and swelling', official Russian documents reveal.


https://www.dailymail.co.uk/news/article-8618707/Vladimir-Putins-coronavirus-vaccine-approved-tests-38-people.html

See the comments below from the US expert. Basically, there won’t be a silver bullet for COVID-19, at least for some time to come and people will have to live with it taking all the necessary precautions as prescribed by the health authorities..The Russian vaccine has not even gone thru the critical Phase3 trials and with no data for verification as per international norms. So the Russian declaration/announcement of having the approved vaccine are more to satisfy the political interest than the intent to find the vaccine with the best efficiency that works. Glove demands will continue to remain strong going forward.

—————————-

Dr. Anthony Fauci says chance of coronavirus vaccine being highly effective is ‘not great’

1-White House coronavirus advisor Dr. Anthony Fauci that the chances of scientists creating a highly effective vaccine — one that provides 98% or more guaranteed protection — for the virus are slim.

2-Scientists are hoping for a coronavirus vaccine that is at least 75% effective, but 50% or 60% effective would be acceptable, too, he said.

3-The FDA has said it would authorize a coronavirus vaccine so long as it is safe and at least 50% effective.

Ho say liao!!, plus US CBP ban issue should be settled soon. Remediation fee only RM53mil. Time to fly TG!!!

Top Glove: General Announcement :: TOP GLOVE ACTIVELY ENGAGING WITH U.S. CBP TOWARDS SPEEDY RESOLUTION
http://repository.shareinvestor.com/rpt_view.pl/id/10673907.1/type/sgxnet/original_filename/1

DBS revised Riverstone TP upwards to 5.51!!!

https://www.theedgesingapore.com/capital/brokers-calls/riverstone-raises-interim-dividend-4-sens-after-1193-surge-1h2020-earnings