Another thing from PIBB
Notably, the operating margin for 3QFY23 at 12.18%, has returned to near the prepandemic level.
This is good. :)

The word w@rmer was banned ... 😂😂😂😂🤣 ... replace "a" with "@"
Why?

Wah lau ... I had to filter out one by one to check which word/sentence was censor by i3.

2 good points I'm happy abt from PIBB
- Kossan is set to revamp its old machines and invest in automation, with an anticipated cost >RM100m in FY24F
- Kossan has also implemented workforce reduction, cutting its headcount by c.33% to 4,000 from a total workforce of 6,000 in FY22

Higher productivity and efficiency overall. Catching up with Hartalega. Kossan will show good profitability for now onwards. Kossan actually beat Harta in earnings for Q3.

2 points I disagree with PIBB
- Meanwhile, natural gas cost is expected to climb higher in 1QCY24, attributed to a time lag effect, but it is expected to normalize in the 2HCY24.

Msia Gloves was losing money bcoz natural gas was at USD6 - 9 in 2022. January 2024 contract for natural gas is around USD2.50, which is low and profitable for gloves. Time lag doesn't make sense, Dec contract was higher at USD3. but down to USD2.5 in Jan. Trend is showing downward pricing.

- While we anticipate Kossan to exhibit resilience in the short term, a note of caution is warranted for the long term as China's on-going expansion is likely to further solidify its dominance in the global market, at the expense of Malaysian glove makers’ market share.

Again on quality, especially used in Medical environment. Higher quality also has high shelf life. They can be more choosy now that it's no longer urgent use during COVID time.
Europe and US "de-risking" from China.
China expansion is for China use at the moment. THey are still facing COVID/Pneumonia cases and it's not so much of COVID is serious or not ... it's more of CHina policy of zero-covid target. The gloves are used more by the "men in white suits" spraying and sanatizing the area than doctors.

Why so slow one Topglv qr result? Got a feeling gonna be bad like Supermax. Late qr result also. hai ....

Not just that. Glove seeing recovery in demands.

ryoyagod

Wow, suddenly gloves sector shooting up today. Resurgence of COVID-19 cases?

Nice ... :)

klee
Sounds familiar ? :)

AS for Topglv .... I'm not counting on them for good result. I hope they can pull through but chance are low bcoz of their size. Supermax didn't come out with a good result and they are the same size as Kossan.

KLEE, totally agree. I'm looking at nat gas hovering at reasonable price. I believe Qtr4 would be good. And Jan24 nat gas contract is selling below 2.5 ... we will see better result for Q124. It's all up earning from here forth.

It's the end of the year. These funds are rebalancing their portfolio. Some are taking profit to provide dividends to their investor or for tax purposes. So these selling is no issue. Wait till early next year. I believe more buying will ensue.

It's the end of the year. These funds are rebalancing their portfolio. Some are taking profit to provide dividends to their investor or for tax purposes. So these selling is no issue. Wait till early next year. I believe more buying will ensue.

Ya la .. just checked the MACD .... at breakeven point. Can go higher.

Ya ka? OK lor .. Resistance 2.1 ... I likey :)

Kossan must break resistance 1.85

Then makan ayam from gerai2 lor .... no worries

facsc118
Still boikot mcd and kfc, ayam tak laku di indonesia and malaysia lo

H1N1 not from Malaysia or ASEAN region. Maybe they hv to buy chicken from LHI ....

"Hong Kong has suspended imports of poultry meat and products from parts of the United States, Britain and Poland following outbreaks of highly pathogenic H5N1 bird flu."

https://www.scmp.com/news/hong-kong/health-environment/article/3244721/hong-kong-suspends-imports-poultry-meat-and-products-parts-us-britain-and-poland-following-h5n1-bird

I never trust analyst TP. THey have they own agenda.

ChandranG

Lol, Kenanga's TP is ridiculously low

Welcome lazzo88

And I see natural gas is ranging around USD2.50. Good.
This was the cost that caused losses to Msia gloves.

Covid hospitalization increase in US and Europe. It comes in wave. Hopefully use up all old gloves and restocking is in order.

I think expectation of decision by MyCC fines on 5 poultry feed companies coming year end. If LHI found guilty, fine is Rm154mill. But I don't think there will be a fine. Soy meal and corn price when up . Of coz price of chicken feed goes up. This MyCC simply abuse power ... KNN!

This current ups and downs ... I take it as normal trading pattern. I ignore it. Does not upset me.

Lu ho liao ... And lu are correct. Kossan is good. I'm excited to see Q4 result ... But hv to wait Feb 24 ... Some more dragon year ... see got boost on sentiment boh? Hehehe...

Penang_lang

Those condemned Kossan ask yourself why EPF buy Kossan not Harta, TopGlove or Supermax.

Anyway this recent down price is due to Clarinden Investments Pte Ltd dumping shares. They are 3rd most LHI shares.

LHI cannot control the market price. These has to do with anchor investors that hold the shares. Maybe they dump after their lock-in period expired. Nothing to do with LHI.

gankm

Please remember the IPO price for LHI is $1.10. The share price started to drop after second day of listing and never ever went above $1.10. So is right to say LHI is a conman company just like Malakoff. Am i right?

Ya. I know. Don't count on "new virus". Have to wait for another 100 years.
Waiting for oversupply during covid to finish and back to pre-covid orders/demands.

Likesung

Chipee
Now covid is very mild nothing different with normal cold so gloves supply are normalize

Why do you said that?

gankm

Better drop back to $0.50 cents. Really a conman company that like to con people. Investment bank should put it "sell" call instead of "buy" call.

LHI had reduced their capex. The free cash flow as this quarter 743mil. By end of the year will be close to 1 bill. To me this is favourable bcoz they will be reducing their debt. This quarter they reduced their debt by Rm255mill q-to-q

Nobody is hoping for NEW VIRUS la.... Case goes up, usage of gloves goes up.
Common sense la.... Ohio and Europe increase cases of pneumonia due to bacteria. U think we hope for kids to die ... Wahlau eh!

And another thing ... TopGlove is the biggest glove producer in the world.
In normal/good market condition and demand is strong, TopGlove is favourable becoz they somewhat decide the ASP. Being the biggest producer and economy of scale, they can make profit via volume play.

But in bad condition (low demand aka low volume), their high overhead cost becomes a problem. They have to maintain a certain ASP which becomes favourable to smaller players. In this situation, smaller players can achieve profit first. And if demand keep staying weak ... smaller players are favourable. Hartalega proves this fact to be true when the shutdown their Bestari Jaya plants. And the next quarter (Q3), Harta becomes profitable. So Kossan, Harta and Supermax is in sweet spot when it comes to production capacity size.... for current demand condition. I believe Supermax make a loss in Q3 bczo of their US venture.

That's a very good point. Thx

Felix666888

Customer stock bought during Covid time either already expired or near expiry because medical glove`s shelf life is about 3 years. You will see demand back to pre Covid time very soon. ASP price will be going up due to demand normalized.

But as of now and uncertain market condition ... Kossan is sitting pretty.
We know most of the world is in negative GDP. Companies with strong cash position is very favourable.

Yeah. No doubt. But we look at how their strive in challenging situation. I would look at that EPS, NTA and ROI....during good times (pre-covid). And you only burn cash if you make a loss. Kossan and Harta are profitable. They are sitting on cash, making them easier to go through hard times and lower debt. Once profit are more consistent from quarter to quarter ... they can decide what to do with it ... share buy back, special dividend, green energy tech etc ....

BobAxelrod33

Thanks, but you have forgotten the basics......EPS, NTA and ROI.....just sitting on a pile of Cash won't work as they are burning cash.

1 Kossan: Q3 Profit 41mill. Cash 2+bill.

2 Hartalega Q3 Profit 29mill. Cash 1.6+bill, Production capacity similar to Kossan. Use to be favourite for dividend payment but Harta cannot pay similar dividends anymore.
Harta used to be more efficient in production but the lower profit (comapre to Kossan) might suggest Kossan had stepped up their game in efficiency.

3 Supermax: Q3 make a loss. Cash 1.6+bill, Production capacity similar to Kossan. Mistake to invest in US. US is problematic with labour unions (high labour cost) and strict regulations.

4. Top Glove: Q3 make a loss. Lowest cash among the 4. Production capacity is high but utilization rate is low, hence overhead fixed cost is high causing net loss. Should demand goes back to pre-covid, then maybe TopGlove can reclaim no. 1.

Ranking change
1 Kossan
2 Hartalega
3 Supermax
4. Top Glove


5354_

Previously Kossan belong to top 4 or no 4 gloves company. After Covid-19 pandemic, Kossan become top 2? Even previous taikor TopGlove cannot make profit yet.

Market take Msia glove industry as a whole. Wah lau .... each individual company is different ler. So Kossan must show good profits in subsequent quarters to prove that they are better glove company in Msia.

Hmmm ... I don't think so lor...

teknikal

Support 1.50 followed by 1.35.

Kanasai ... Supermax loss money affect Kossan meh?
THat;s why I said Kossan is better managed compare to all the glove companies.

We will see such high profit from Q to Q bcoz LHI is done with expansion. With lower capex, net profit can be high. Now is time to recuperate profit from their investment.

Supermax sleeping ka ? ZZZZZ
Where is QR?

Volume for today looks small for EPF or Abrdn to be involved.
Scenario may change after lunch.

Aik? ... EPF buy 700K units ...
Hmmm ... I think they are trading in and out. If net is buy price shld be up.
Hoping to buy at lower price I think.

Abrdn, EPF and Director selling. ... sigh... why ler?

THere's a reason Msia is top in gloves. I suspect is good Msia quality. China and Thailand took 5% was due to glove shortage during covid. They might come back for the same quality reason.

Ciak sai liao ... nevermind la ... wait for Q4.

yfchong

Taikor aberdeen cash out yor fuiyoh

Totally agree. Harta is valued more bcoz they pay better dividend than Kossan on historic basis. But I think Harta cannot sustain the same dividend payout anymore.

Harta outstanding shares: 3.417bill. Cash position: 1.6+ bill
Kossan outstanding shares: 2.557 bill. Cash position: 2+ bill

Harta production capacity been cut to almost Kossan level. Kossan made 2x net profit than Harta in Q3.

Either Kossan price go above Harta or Harta price drop below Kossan. This rely on sentiment.

Then have to wait next quarter result.

Never trust analysts. They have their own agenda.

EPF is buying. Lets see Kossan go up.

Supermax when release quarter result?

yfchong

Waiting for Supermax Q if sui can ride on