Zuliana Sayur nara TG.

Sayur nara adalah jual sayur tepi jalan
Sayonara is Goodbye

Zuliana Sayur nara TG.

Alamak sini Supermax Forum bukan TG lah
Dementia kah
Sibuk here dont know what purpose?

calvin5025 rm5 coming
ctquay600305 rm5.00 coming

Both mum r t same terima 5 for 1 cucuk

Talk is cheap Khoo810 ,u can say any figure as u like but where is the proof, its not difficult just copy n paste or else u r Sorhai cum retarded



Khoo810 China glove makers Blue Sail Medical and Intco Medical aim to raise their nitrile glove production capacities. Blue Sail Medical intends to increase its production to 36.1 billion pieces per annum by 2021 from 4.3 billion pieces as of end-2019.

On the other hand, Intco plans to expand its nitrile glove capacity to 59.2 billion pieces per annum by 2021, from 5 billion pieces at end-2019.

HARTA 26-Jun-2020 Price Target Rubber Gloves - Fundamentally Strong But Priced In
Source : PUBLIC BANK, Price Call : HOLD, Price Target : 11.10
Last Price : 11.94, Upside/Downside : -0.84(7.04%)

Rubber Gloves - Fundamentally Strong But Priced In
Author: PublicInvest | Publish date: Fri, 26 Jun 2020, 10:52 AM

Downgrade to Neutral. We believe the glove players to continue delivering record high profit in the coming quarters, mainly supported by the ASP increase. As such, we raise our FY20-22F earnings forecast for Kossan and Hartalega by 11-124% to reflect the impact of higher ASP and operational efficiency as the glove makers ramp up their operations to fulfill the influx of orders. However, we caution that such strong profits are unsustainable in the long-run and we expect earnings to peak in CY21F, therefore we reckon it is not justifiable to continue valuing the glove players at +2SD of its respective 5- year historical mean. Meanwhile, we reduce our PE multiple for both Hartalega and Kossan to 38x and 26x respectively, which is at +1SD of its 5-year historical mean. We also downgrade our recommendation on the rubber glove sector from Overweight to Neutral, taking into consideration that the exceptional earnings cannot be maintained for an extended period of time.

Hartalega. We adjust our earnings forecast for FY21-22F by 35-124% to account for the higher ASP assumption as well as operational efficiency. Our TP is subsequently raised to RM11.10, with an implied PE multiple of 38x (at 1SD of its 5-year historical mean), based on a CY21F EPS of 29.2sen. Maintain Neutral.

calvintaneng Sifu/Taiko also tak boleh tahan lagi with Herbert the Bird Brain

HARTA 26-Jun-2020 Price Target Rubber Gloves - Fundamentally Strong But Priced In
Source : PUBLIC BANK, Price Call : HOLD, Price Target : 11.10
Last Price : 11.94, Upside/Downside : -0.84(7.04%)

Rubber Gloves - Fundamentally Strong But Priced In
Author: PublicInvest | Publish date: Fri, 26 Jun 2020, 10:52 AM

Downgrade to Neutral. We believe the glove players to continue delivering record high profit in the coming quarters, mainly supported by the ASP increase. As such, we raise our FY20-22F earnings forecast for Kossan and Hartalega by 11-124% to reflect the impact of higher ASP and operational efficiency as the glove makers ramp up their operations to fulfill the influx of orders. However, we caution that such strong profits are unsustainable in the long-run and we expect earnings to peak in CY21F, therefore we reckon it is not justifiable to continue valuing the glove players at +2SD of its respective 5- year historical mean. Meanwhile, we reduce our PE multiple for both Hartalega and Kossan to 38x and 26x respectively, which is at +1SD of its 5-year historical mean. We also downgrade our recommendation on the rubber glove sector from Overweight to Neutral, taking into consideration that the exceptional earnings cannot be maintained for an extended period of time.

Hartalega. We adjust our earnings forecast for FY21-22F by 35-124% to account for the higher ASP assumption as well as operational efficiency. Our TP is subsequently raised to RM11.10, with an implied PE multiple of 38x (at 1SD of its 5-year historical mean), based on a CY21F EPS of 29.2sen. Maintain Neutral.



HerbertChua Dear readers,

The reason is because their customers are satured. One day they can buy glove, the next day they can be gone.

Compare to Hartalega's customers who are more than 50% in the US medical and government industry that benefit from US Federal Reserve funding.

Another reason is an analyst CHUA SIU LING from PublicInvest that decided to downgrade Glove sector after promoting like a car salesgirl selling hot cakes.

The real pandemic is the incompetent and unethical analysts that sell their shares at the same time asking retail investors to buy.

Thank you

Chua

Bursatrador only penny stock kaki , i m pretty sure he cannot afford to buy 1 lot of Supermax share
He is jealous n sour grape n Sorhai


DJoker89 Cheapskate ppl begging for cheaper price to buy in....hahahahahaha

Post removed.Why?

Aiyoh Can a Company giving dividen n bonus issue 4+1(2010) ,1+1(2012), 1+1(Jan 2019), 65+1(Dec 2019) since 2010 will have a financial problem n restructuring ? Alamak OMG


jerrydinesh @forza31 do you know if they had restructured at some time after 2010? do u recall that i cannot seem to track down the annoucements

Why @mf keep spamming negative news at all Gloves stocks ?
1) He misses the boat on Gloves stocks super bull and jealous
2) Most of his investment are O&G stocks (not moving) and some penny/ABC stocks.
I alrd check his past/present history comments at mf profile
3) He almost or alrd lost his pant off , low sai / bankrupt

Note: We should forgive n pity this dumber/retard or sochai mistake




mf https://www.thestar.com.my/news/world/2020/06/23/chinese-firm-gets-app...

jacklimeu2 Final words tonight: Hope you all know when to get out, and don't get burnt....lol

Thank You for ur advice n sleep well
Hopefully no nightmare that Supermax limit up tomorrow morning

Yes u r right , what we need is this 1-2 years to reach 10.00-15.000 n will be laughing all the way to Bank. Only jacklimeu2 r fool/sorchai cannot afford to wait(premature ejaculation)


jacklimeu2 I have been asking all the time, but nobody wants to calculate.

All analyst use high ASP. It's sky high now. It will be high for 1-2 years. But after that, it will drop to normal. At normal ASP, with the increased capacity, with OBM higher margin, what's the eps?

In other words, like all the other pandemics in the past, the increased demand and high ASP is temporary. You have to know what the performance will be once the normal comes. You can argue the "new normal" will be different this time. Yes, it will be, but what's the "new normal" prices be?
22/06/2020 10:15 PM

jacklimeu2 Most of Supermax shareholders know the value of Supermax during SARS n today CONVID 19. Only fool like u dont know the value, must be Retarded Sorhai or Down Syndrome

jacklimeu2 B4 SARS Supermax only a penny stock, i m not surprise u can own penny stock at that period . Now/Today Supermax almost consider blue chips stock n i doubt u can buy n hold for medium/long term. Maybe contra Boleh ,peanut profit gain the most. xiao xi ren

jacklimeu2 You guys are amazing. Anyone who holds a contrary opinion is cursed at.

I have supermax shares since before SARS. Soon after latexx was taken private. (Some of you probably never heard of Latexx).

Wah ! u think u the only 1 know about latexx?

Not only jacklimeu2 ,vanness_lyh also one this kind n many more in this forum who r chicken heart which take profit with a peanut gain n later talk rubbish
Those r the Sorhai/Sorchai n retarded

acklimeu2 the future man predict must me broke/loser sorhai



DJoker89 acklimeu2 upside will be weak, as i see many holding at 7+, 8+, and will want to liquidate and get out once it reaches reaches their entry prices....so it cannot go up fast or strong due to these profit taking. The syariah listing is a non event. Even the 4QR will likely be a non event, if it is not given out to shareholders as dividends. So upside is limited.

Hahahahahaha.....
Cannot tahan with all this sor chai talks. They think they are the god know everything....and can freely speak for others.

Restart retard, damn retard.
Since this fella like to assume everything anything thn let me take a wild assumption here, this sor chai will broke by this year.
22/06/2020 8:58 PM

Jokers2020 those bought at rm3 below can playout ikan bilis by just selling low 1 or 2 unit and this will start panic selling by those weak holder..
22/06/2020 8:46 PM

Talk is cheap? no brainer

Cindy 22 Jun 2020 RUBEREX SENG SHENG ENTERPRISE SDN. BHD. (24,600,000 units Disposed)
At what price ? today 22nd June total volume only 7500 k lot close RM 2.92

Big Fish eat Small Fish

Pity those small shareholders , so sad

PP only 10% off
RTO 35% off ? OMG
God must be crazy

1st QTR 2020 not release yet n BURSA allow RTO ?

vanness_lyh Aiyo sorzai Aramco bad mouth people, wish you lose money always hahaha


Me losing money ? HAHA
Sorhai vanness_lyh ,FYI Me accumulating SM + cw n TG + cw since early March n laughing all the way to many BANKS
U Chicken heart only make peanuts like Monkey Sorlou

vanness_lyh

Peanuts for Monkey
Banana for Gorilla
Big Money for Human
Sorlou !

vanness_lyh Posted by Aramco > Jun 22, 2020 6:02 PM | Report Abuse

vanness_lyh last week panic sell n so sour now , haha kena tipu by IB

Profit taken...sorzai...
22/06/2020 6:06 PM

Such a peanuts profit also want , monkey kah sorhai

fca70jia Still holding. Everyday excited until I can't sleep.. waiting qtr like a baby waiting to drink milk


fca70jia U dare to sleep kah ?
vanness_lyh says in our dream so what say u ?

vanness_lyh last week panic sell n so sour now , haha kena tipu by IB

vanness_lyh Posted by Aramco > Jun 22, 2020 5:49 PM | Report Abuse

This coming days or months will be supermax show than follow by TG later

In your dream

Ayoyo sold all ur tickets alrd aah , no wonder so sour
Those still hold will laugh all the way to Bank ,very sour grape vanness_lyh

This coming days or months will be supermax show than follow by TG later

vanness_lyh Already told you guys, won't so easy to gap up now...why? Look for TG if you know what I mean

SOUR GRAPE dont open ur big mouth so soon, tomorrow onward till explosive qtr 4 result out than u only rasa siok siok

Why @mf keep spamming negative news at all Gloves stocks ?
1) He misses the boat on Gloves stocks super bull and jealous
2) Most of his investment are O&G stocks (not moving) and some penny/ABC stocks.
I alrd check his past/present history comments at mf profile
3) He almost or alrd lost his pant off , low sai / bankrupt

Note: We should forgive n pity this dumber/retard or sochai mistake



DJoker89 Mf not much money to invest, he need to sing vaccine song until the price drop cheap cheap till the price he can afford. Not his fault, but he didn't realised his action only create hatred and more curse to himself...



mf Coronavirus (Covid-19) vaccine status check: GSK booster shot in clinical trials; Clover starts human tests

Why @mf keep spamming negative news at all Gloves stocks ?
1) He misses the boat on Gloves stocks super bull and jealous
2) Most of his investment are O&G stocks (not moving) and some penny/ABC stocks.
I alrd check his past/present history comments at mf profile
3) He almost or alrd lost his pant off , low sai / bankrupt

Note: We should forgive n pity this dumber/retard or sochai mistake



DJoker89 Mf not much money to invest, he need to sing vaccine song until the price drop cheap cheap till the price he can afford. Not his fault, but he didn't realised his action only create hatred and more curse to himself...


mf Dow Jones 25,871.461 -208.64 0.80%

The Rising Might of China

As for the massive capacity expansion by Chinese peers, it will take more than the course of 2 years. Building an automated technology driven manufacturing facility is not the same as building a makeshift hospitals in 10 days. Certifications, compliance with FDA, global audit / scrutiny / need for transparency are all prerequisite to become a global supplier of gloves. Additionally, our local glove players will also have similar plans and should be able to defend their market shares. Besides, a prolonged trade war with the US may not bode so well for Chinese players. Europe, US, Australia (G7) have taken a very protective stance against the rise of China resulting in distrust, tariff wars and propaganda attacks. Therefore, all in all, we are not overly disturbed with what they are attempting to achieve

EngineeringProfit Posted by Targeted > Jun 21, 2020 3:53 PM | Report Abuse

Rumour is Lee Kee Gloves is the China company expanding fast!!

___________

Got 3D printing or not?
21/06/2020 3:59 PM

The Rising Might of China

As for the massive capacity expansion by Chinese peers, it will take more than the course of 2 years. Building an automated technology driven manufacturing facility is not the same as building a makeshift hospitals in 10 days. Certifications, compliance with FDA, global audit / scrutiny / need for transparency are all prerequisite to become a global supplier of gloves. Additionally, our local glove players will also have similar plans and should be able to defend their market shares. Besides, a prolonged trade war with the US may not bode so well for Chinese players. Europe, US, Australia (G7) have taken a very protective stance against the rise of China resulting in distrust, tariff wars and propaganda attacks. Therefore, all in all, we are not overly disturbed with what they are attempting to achieve.

Change in Behavioral Pattern / New Normal

We think after the Covid-19 episode, the awareness of good hygiene has increased and will further support the demand for gloves. Moreover, the % of glove cost to total healthcare expenditure is relatively insignificant. Thus, glove prices may hold better than what most people think after Covid-19.

After considering all of the above, it is too premature to call it game over for the glove sector. Currently, there are only a handful of industries that can depict strong visible earnings growth. Furthermore, there are fears of a 2nd wave of Covid-19. Overall, consensus has a TP of RM20.28 (most bullish analyst: RM25) for Top Glove, RM8.22 (most bullish analyst: RM11) for Supermax & RM11.58 (most bullish analyst: RM17.50) for Hartalega. For us, we would not bet against these Malaysian industrialist who managed to put Malaysia on a global limelight. Of course this is our humble view, now it is your move

Supermax was the OBM player who had fluctuating performance, and margin that was lower with a less healthy balance sheet. Today, Supermax OBM model is paying off benefiting from full ASP increase.
I will only say this - the gloves sector retractment / selloff is a godsend opportunity to those who missed the ride. Whoever entered earlier and is taking profit now, congratulations, you or the fund did well hence taking profit off the table is good discipline.
Overall, consensus has a TP of RM20.28 (most bullish analyst: RM25) for Top Glove, RM8.22 (most bullish analyst: RM11) for Supermax & RM11.58 (most bullish analyst: RM17.50) for Hartalega. For us, we would not bet against these Malaysian industrialist who managed to put Malaysia on a global limelight. Of course this is our humble view, now it is your move.

MFundertaker secretinvestor8888 i thought your whole family ham ka chan last week and you already paid me for your wife and children funerals...
Maybe today you sister family is going to die..
I GIVE YOU 50 PER CENT FUNERAL BILLS IF YOU SISTER FAMILY HAM KA CHAN
21/06/2020 12:28 PM

I'll bare balance 50%

Why @mf keep spamming negative news at all Gloves stocks ?
1) He misses the boat on Gloves stocks super bull and jealous
2) Most of his investment are O&G stocks (not moving) and some penny/ABC stocks.
I alrd check his past/present history comments at mf profile
3) He almost or alrd lost his pant off , low sai / bankrupt

Note: We should forgive n pity this dumber/retard or sochai mistake



DJoker89 Mf not much money to invest, he need to sing vaccine song until the price drop cheap cheap till the price he can afford. Not his fault, but he didn't realised his action only create hatred and more curse to himself...

@mf it may sound smart plan but it's look retard and ineffective in a way yeah.

Why @mf keep spamming negative news at all Gloves stocks ?
1) He misses the boat on Gloves stocks super bull and jealous
2) Most of his investment are O&G stocks (not moving) and some penny/ABC stocks.
I alrd check his past/present history comments at mf profile
3) He almost or alrd lost his pant off , low sai / bankrupt

Note: We should forgive n pity this dumber/retard or sochai mistake



DJoker89 Mf not much money to invest, he need to sing vaccine song until the price drop cheap cheap till the price he can afford. Not his fault, but he didn't realised his action only create hatred and more curse to himself...

@mf it may sound smart plan but it's look retard and ineffective in a way yeah.

Why @mf keep spamming negative news at all Gloves stocks ?
1) He misses the boat on Gloves stocks super bull and jealous
2) Most of his investment are O&G stocks (not moving) and some penny/ABC stocks.
I alrd check his past/present history comments at mf profile
3) He almost or alrd lost his pant off , low sai / bankrupt

Note: We should forgive n pity this dumber/retard or sochai mistake



DJoker89 Mf not much money to invest, he need to sing vaccine song until the price drop cheap cheap till the price he can afford. Not his fault, but he didn't realised his action only create hatred and more curse to himself...

@mf it may sound smart plan but it's look retard and ineffective in a way yeah.



mf Dow Jones 25,871.461 -208.64 0.80%

In Conclusion, Is the Glove Sector a "Tulip Mania" or Is Further Upside Justified?


As for Covid, this began in December 2019 and is still ongoing; no vaccine has been found and approved yet. That said, we have only witness 1 quarter of glove sector earnings performance and it was already mind blowing:

(i) Top Glove tripled;
(ii) Supermax doubled whilst;
(iii) Hartalega unfortunately fell 5%.

Based on our findings, consensus is looking at explosive earnings growth of 2-5x (at peak levels) while the most bullish analyst in town is estimating 3-9x increase. However, share prices only jumped 2-5x unlike during H1N1 where it doubled that of earnings growth; this clearly suggest that glove stocks potentially still have legs to run further. Moreover, valuations look attractive:

1. Top Glove is trading at 18x P/E vs 5-year average of 22x. When we take the EPS of the most bullish analyst, P/E is only 11x.

2. Supermax is trading at 24x P/E vs 5-year average of 14x. At glance appear demanding but if we use the EPS of the most bullish analyst, P/E drops to 16x while for the broker that estimated RM1b profit, P/E is seen to drop to only 9x.


3. Hartalega is trading at 46x P/E vs 5-year average of 32x. Again, it would fall to 28x if we use the EPS of the most bullish analyst.


Thus, we believe the recent selldown presents a good opportunity to consider accumulating; this is in spite of the concerns of windfall tax and massive capacity expansion of peers in China.

1. Historical Valuation and Future Earnings

Firstly, we feel consensus is a little too conservative (2-5x) and should play catch up to the earnings projection of the most bullish analyst (3-9x); this is because the impact of Covid-19 is far more profound than H1N1 but consensus is forecasting only similar earnings growth profile (2-4x). Hence, assuming the windfall tax is to shave some 20% of profit projected by the most bullish analyst, P/E for Top Glove, Supermax & Hartalega is estimated to rise to 14x, 11x & 35x, respectively; when compared against historical average, valuation of Top Glove & Supermax still appear to be inexpensive.

2. The Rising Might of China

As for the massive capacity expansion by Chinese peers, it will take more than the course of 2 years. Building an automated technology driven manufacturing facility is not the same as building a makeshift hospitals in 10 days. Certifications, compliance with FDA, global audit / scrutiny / need for transparency are all prerequisite to become a global supplier of gloves. Additionally, our local glove players will also have similar plans and should be able to defend their market shares. Besides, a prolonged trade war with the US may not bode so well for Chinese players. Europe, US, Australia (G7) have taken a very protective stance against the rise of China resulting in distrust, tariff wars and propaganda attacks. Therefore, all in all, we are not overly disturbed with what they are attempting to achieve.

3. Change in Behavioral Pattern / New Normal

We think after the Covid-19 episode, the awareness of good hygiene has increased and will further support the demand for gloves. Moreover, the % of glove cost to total healthcare expenditure is relatively insignificant. Thus, glove prices may hold better than what most people think after Covid-19.



After considering all of the above, it is too premature to call it game over for the glove sector. Currently, there are only a handful of industries that can depict strong visible earnings growth. Furthermore, there are fears of a 2nd wave of Covid-19. Overall, consensus has a TP of RM20.28 (most bullish analyst: RM25) for Top Glove, RM8.22 (most bullish analyst: RM11) for Supermax & RM11.58 (most bullish analyst: RM17.50) for Hartalega. For us, we would not bet against these Malaysian industrialist who managed to put Malaysia on a global limelight. Of course this is our humble view, now it is your move

In Conclusion, Is the Glove Sector a "Tulip Mania" or Is Further Upside Justified?


As for Covid, this began in December 2019 and is still ongoing; no vaccine has been found and approved yet. That said, we have only witness 1 quarter of glove sector earnings performance and it was already mind blowing:

(i) Top Glove tripled;
(ii) Supermax doubled whilst;
(iii) Hartalega unfortunately fell 5%.

Based on our findings, consensus is looking at explosive earnings growth of 2-5x (at peak levels) while the most bullish analyst in town is estimating 3-9x increase. However, share prices only jumped 2-5x unlike during H1N1 where it doubled that of earnings growth; this clearly suggest that glove stocks potentially still have legs to run further. Moreover, valuations look attractive:

1. Top Glove is trading at 18x P/E vs 5-year average of 22x. When we take the EPS of the most bullish analyst, P/E is only 11x.

2. Supermax is trading at 24x P/E vs 5-year average of 14x. At glance appear demanding but if we use the EPS of the most bullish analyst, P/E drops to 16x while for the broker that estimated RM1b profit, P/E is seen to drop to only 9x.


3. Hartalega is trading at 46x P/E vs 5-year average of 32x. Again, it would fall to 28x if we use the EPS of the most bullish analyst.


Thus, we believe the recent selldown presents a good opportunity to consider accumulating; this is in spite of the concerns of windfall tax and massive capacity expansion of peers in China.

1. Historical Valuation and Future Earnings

Firstly, we feel consensus is a little too conservative (2-5x) and should play catch up to the earnings projection of the most bullish analyst (3-9x); this is because the impact of Covid-19 is far more profound than H1N1 but consensus is forecasting only similar earnings growth profile (2-4x). Hence, assuming the windfall tax is to shave some 20% of profit projected by the most bullish analyst, P/E for Top Glove, Supermax & Hartalega is estimated to rise to 14x, 11x & 35x, respectively; when compared against historical average, valuation of Top Glove & Supermax still appear to be inexpensive.

2. The Rising Might of China

As for the massive capacity expansion by Chinese peers, it will take more than the course of 2 years. Building an automated technology driven manufacturing facility is not the same as building a makeshift hospitals in 10 days. Certifications, compliance with FDA, global audit / scrutiny / need for transparency are all prerequisite to become a global supplier of gloves. Additionally, our local glove players will also have similar plans and should be able to defend their market shares. Besides, a prolonged trade war with the US may not bode so well for Chinese players. Europe, US, Australia (G7) have taken a very protective stance against the rise of China resulting in distrust, tariff wars and propaganda attacks. Therefore, all in all, we are not overly disturbed with what they are attempting to achieve.

3. Change in Behavioral Pattern / New Normal

We think after the Covid-19 episode, the awareness of good hygiene has increased and will further support the demand for gloves. Moreover, the % of glove cost to total healthcare expenditure is relatively insignificant. Thus, glove prices may hold better than what most people think after Covid-19.



After considering all of the above, it is too premature to call it game over for the glove sector. Currently, there are only a handful of industries that can depict strong visible earnings growth. Furthermore, there are fears of a 2nd wave of Covid-19. Overall, consensus has a TP of RM20.28 (most bullish analyst: RM25) for Top Glove, RM8.22 (most bullish analyst: RM11) for Supermax & RM11.58 (most bullish analyst: RM17.50) for Hartalega. For us, we would not bet against these Malaysian industrialist who managed to put Malaysia on a global limelight. Of course this is our humble view, now it is your move

In Conclusion, Is the Glove Sector a "Tulip Mania" or Is Further Upside Justified?


As for Covid, this began in December 2019 and is still ongoing; no vaccine has been found and approved yet. That said, we have only witness 1 quarter of glove sector earnings performance and it was already mind blowing:

(i) Top Glove tripled;
(ii) Supermax doubled whilst;
(iii) Hartalega unfortunately fell 5%.

Based on our findings, consensus is looking at explosive earnings growth of 2-5x (at peak levels) while the most bullish analyst in town is estimating 3-9x increase. However, share prices only jumped 2-5x unlike during H1N1 where it doubled that of earnings growth; this clearly suggest that glove stocks potentially still have legs to run further. Moreover, valuations look attractive:

1. Top Glove is trading at 18x P/E vs 5-year average of 22x. When we take the EPS of the most bullish analyst, P/E is only 11x.

2. Supermax is trading at 24x P/E vs 5-year average of 14x. At glance appear demanding but if we use the EPS of the most bullish analyst, P/E drops to 16x while for the broker that estimated RM1b profit, P/E is seen to drop to only 9x.


3. Hartalega is trading at 46x P/E vs 5-year average of 32x. Again, it would fall to 28x if we use the EPS of the most bullish analyst.


Thus, we believe the recent selldown presents a good opportunity to consider accumulating; this is in spite of the concerns of windfall tax and massive capacity expansion of peers in China.

1. Historical Valuation and Future Earnings

Firstly, we feel consensus is a little too conservative (2-5x) and should play catch up to the earnings projection of the most bullish analyst (3-9x); this is because the impact of Covid-19 is far more profound than H1N1 but consensus is forecasting only similar earnings growth profile (2-4x). Hence, assuming the windfall tax is to shave some 20% of profit projected by the most bullish analyst, P/E for Top Glove, Supermax & Hartalega is estimated to rise to 14x, 11x & 35x, respectively; when compared against historical average, valuation of Top Glove & Supermax still appear to be inexpensive.

2. The Rising Might of China

As for the massive capacity expansion by Chinese peers, it will take more than the course of 2 years. Building an automated technology driven manufacturing facility is not the same as building a makeshift hospitals in 10 days. Certifications, compliance with FDA, global audit / scrutiny / need for transparency are all prerequisite to become a global supplier of gloves. Additionally, our local glove players will also have similar plans and should be able to defend their market shares. Besides, a prolonged trade war with the US may not bode so well for Chinese players. Europe, US, Australia (G7) have taken a very protective stance against the rise of China resulting in distrust, tariff wars and propaganda attacks. Therefore, all in all, we are not overly disturbed with what they are attempting to achieve.

3. Change in Behavioral Pattern / New Normal

We think after the Covid-19 episode, the awareness of good hygiene has increased and will further support the demand for gloves. Moreover, the % of glove cost to total healthcare expenditure is relatively insignificant. Thus, glove prices may hold better than what most people think after Covid-19.



After considering all of the above, it is too premature to call it game over for the glove sector. Currently, there are only a handful of industries that can depict strong visible earnings growth. Furthermore, there are fears of a 2nd wave of Covid-19. Overall, consensus has a TP of RM20.28 (most bullish analyst: RM25) for Top Glove, RM8.22 (most bullish analyst: RM11) for Supermax & RM11.58 (most bullish analyst: RM17.50) for Hartalega. For us, we would not bet against these Malaysian industrialist who managed to put Malaysia on a global limelight. Of course this is our humble view, now it is your move

In Conclusion, Is the Glove Sector a "Tulip Mania" or Is Further Upside Justified?


As for Covid, this began in December 2019 and is still ongoing; no vaccine has been found and approved yet. That said, we have only witness 1 quarter of glove sector earnings performance and it was already mind blowing:

(i) Top Glove tripled;
(ii) Supermax doubled whilst;
(iii) Hartalega unfortunately fell 5%.

Based on our findings, consensus is looking at explosive earnings growth of 2-5x (at peak levels) while the most bullish analyst in town is estimating 3-9x increase. However, share prices only jumped 2-5x unlike during H1N1 where it doubled that of earnings growth; this clearly suggest that glove stocks potentially still have legs to run further. Moreover, valuations look attractive:

1. Top Glove is trading at 18x P/E vs 5-year average of 22x. When we take the EPS of the most bullish analyst, P/E is only 11x.

2. Supermax is trading at 24x P/E vs 5-year average of 14x. At glance appear demanding but if we use the EPS of the most bullish analyst, P/E drops to 16x while for the broker that estimated RM1b profit, P/E is seen to drop to only 9x.


3. Hartalega is trading at 46x P/E vs 5-year average of 32x. Again, it would fall to 28x if we use the EPS of the most bullish analyst.


Thus, we believe the recent selldown presents a good opportunity to consider accumulating; this is in spite of the concerns of windfall tax and massive capacity expansion of peers in China.

1. Historical Valuation and Future Earnings

Firstly, we feel consensus is a little too conservative (2-5x) and should play catch up to the earnings projection of the most bullish analyst (3-9x); this is because the impact of Covid-19 is far more profound than H1N1 but consensus is forecasting only similar earnings growth profile (2-4x). Hence, assuming the windfall tax is to shave some 20% of profit projected by the most bullish analyst, P/E for Top Glove, Supermax & Hartalega is estimated to rise to 14x, 11x & 35x, respectively; when compared against historical average, valuation of Top Glove & Supermax still appear to be inexpensive.

2. The Rising Might of China

As for the massive capacity expansion by Chinese peers, it will take more than the course of 2 years. Building an automated technology driven manufacturing facility is not the same as building a makeshift hospitals in 10 days. Certifications, compliance with FDA, global audit / scrutiny / need for transparency are all prerequisite to become a global supplier of gloves. Additionally, our local glove players will also have similar plans and should be able to defend their market shares. Besides, a prolonged trade war with the US may not bode so well for Chinese players. Europe, US, Australia (G7) have taken a very protective stance against the rise of China resulting in distrust, tariff wars and propaganda attacks. Therefore, all in all, we are not overly disturbed with what they are attempting to achieve.

3. Change in Behavioral Pattern / New Normal

We think after the Covid-19 episode, the awareness of good hygiene has increased and will further support the demand for gloves. Moreover, the % of glove cost to total healthcare expenditure is relatively insignificant. Thus, glove prices may hold better than what most people think after Covid-19.



After considering all of the above, it is too premature to call it game over for the glove sector. Currently, there are only a handful of industries that can depict strong visible earnings growth. Furthermore, there are fears of a 2nd wave of Covid-19. Overall, consensus has a TP of RM20.28 (most bullish analyst: RM25) for Top Glove, RM8.22 (most bullish analyst: RM11) for Supermax & RM11.58 (most bullish analyst: RM17.50) for Hartalega. For us, we would not bet against these Malaysian industrialist who managed to put Malaysia on a global limelight. Of course this is our humble view, now it is your move

In Conclusion, Is the Glove Sector a "Tulip Mania" or Is Further Upside Justified?


As for Covid, this began in December 2019 and is still ongoing; no vaccine has been found and approved yet. That said, we have only witness 1 quarter of glove sector earnings performance and it was already mind blowing:

(i) Top Glove tripled;
(ii) Supermax doubled whilst;
(iii) Hartalega unfortunately fell 5%.

Based on our findings, consensus is looking at explosive earnings growth of 2-5x (at peak levels) while the most bullish analyst in town is estimating 3-9x increase. However, share prices only jumped 2-5x unlike during H1N1 where it doubled that of earnings growth; this clearly suggest that glove stocks potentially still have legs to run further. Moreover, valuations look attractive:

1. Top Glove is trading at 18x P/E vs 5-year average of 22x. When we take the EPS of the most bullish analyst, P/E is only 11x.

2. Supermax is trading at 24x P/E vs 5-year average of 14x. At glance appear demanding but if we use the EPS of the most bullish analyst, P/E drops to 16x while for the broker that estimated RM1b profit, P/E is seen to drop to only 9x.


3. Hartalega is trading at 46x P/E vs 5-year average of 32x. Again, it would fall to 28x if we use the EPS of the most bullish analyst.


Thus, we believe the recent selldown presents a good opportunity to consider accumulating; this is in spite of the concerns of windfall tax and massive capacity expansion of peers in China.

1. Historical Valuation and Future Earnings

Firstly, we feel consensus is a little too conservative (2-5x) and should play catch up to the earnings projection of the most bullish analyst (3-9x); this is because the impact of Covid-19 is far more profound than H1N1 but consensus is forecasting only similar earnings growth profile (2-4x). Hence, assuming the windfall tax is to shave some 20% of profit projected by the most bullish analyst, P/E for Top Glove, Supermax & Hartalega is estimated to rise to 14x, 11x & 35x, respectively; when compared against historical average, valuation of Top Glove & Supermax still appear to be inexpensive.

2. The Rising Might of China

As for the massive capacity expansion by Chinese peers, it will take more than the course of 2 years. Building an automated technology driven manufacturing facility is not the same as building a makeshift hospitals in 10 days. Certifications, compliance with FDA, global audit / scrutiny / need for transparency are all prerequisite to become a global supplier of gloves. Additionally, our local glove players will also have similar plans and should be able to defend their market shares. Besides, a prolonged trade war with the US may not bode so well for Chinese players. Europe, US, Australia (G7) have taken a very protective stance against the rise of China resulting in distrust, tariff wars and propaganda attacks. Therefore, all in all, we are not overly disturbed with what they are attempting to achieve.

3. Change in Behavioral Pattern / New Normal

We think after the Covid-19 episode, the awareness of good hygiene has increased and will further support the demand for gloves. Moreover, the % of glove cost to total healthcare expenditure is relatively insignificant. Thus, glove prices may hold better than what most people think after Covid-19.



After considering all of the above, it is too premature to call it game over for the glove sector. Currently, there are only a handful of industries that can depict strong visible earnings growth. Furthermore, there are fears of a 2nd wave of Covid-19. Overall, consensus has a TP of RM20.28 (most bullish analyst: RM25) for Top Glove, RM8.22 (most bullish analyst: RM11) for Supermax & RM11.58 (most bullish analyst: RM17.50) for Hartalega. For us, we would not bet against these Malaysian industrialist who managed to put Malaysia on a global limelight. Of course this is our humble view, now it is your move.

1. Hartalega - would always command a premium over the rest (founder Mr Kuan - is an industry titan / pioneer) with strong balance sheet and state of the art facility / technology.

2. Top Glove is the ever expanding, aggressive, high profile number 2 chasing Hartalega market leader (market cap) position. What made me hesitant was the huge debts taken to expand - perpetual sukuk. I never liked overly aggressive business philosophy. However, today Topglove is reaping the full benefit due to their aggressive growth model.

3. Kossan was the number 3, steady, expanding with good margin glove player who was not as aggressive as Topglove but reliable and willing to work hard to fulfil their OEM client needs whilst carving their own niche is technical gloves.

4. Supermax was the OBM player who had fluctuating performance, and margin that was lower with a less healthy balance sheet. Today, Supermax OBM model is paying off benefiting from full ASP increase.

1. Hartalega - would always command a premium over the rest (founder Mr Kuan - is an industry titan / pioneer) with strong balance sheet and state of the art facility / technology.

2. Top Glove is the ever expanding, aggressive, high profile number 2 chasing Hartalega market leader (market cap) position. What made me hesitant was the huge debts taken to expand - perpetual sukuk. I never liked overly aggressive business philosophy. However, today Topglove is reaping the full benefit due to their aggressive growth model.

3. Kossan was the number 3, steady, expanding with good margin glove player who was not as aggressive as Topglove but reliable and willing to work hard to fulfil their OEM client needs whilst carving their own niche is technical gloves.

4. Supermax was the OBM player who had fluctuating performance, and margin that was lower with a less healthy balance sheet. Today, Supermax OBM model is paying off benefiting from full ASP increase.