The drop in share price yesterday is unnecessary panic because the Government has instructed all factories and plants in all sectors to operate at 60% workforce at any one time.

So now single shift factories and plants are going into double shift to spread out the workforce and maintain the 60% at any one time.

Hence very little or negligible impact on production.

Also the expansion factories have already been producing the stock but still not enough to meet the demand.

This is good, because the non FAA approved gloves will be filtered out of the market.

The drop in share price yesterday is unnecessary panic because the Government has instructed all factories and plants in all sectors to operate at 60% workforce at any one time. So now single shift factories and plants are going into double shift to spread out the workforce and maintain the 60% at any one time.

So very little or negligible impact on production.

Also the expansion factories have already been producing the stock but still not enoght to meet the demand.

This is good, because the non FAA approved gloves will be filtered out of the market.

https://www.malaysiakini.com/world/577047

China reports first human case of H10N3 bird flu.

This may spread like all the other H1 bird flu. PPE and glove demand will continue to rise.

https://www.malaysiakini.com/world/577047

China reports first human case of H10N3 bird flu.

This may spread like all the other H1 bird flu. PPE and glove demand will continue to rise.

Careplus major customer is Brazil. The new ases there are very high. Also all vaccinations in the USA and Europre are using gloves. The demand has been increasing and increasing. What oyu have been hearing are fake news to instill fear so that you panic sell.

Supermax and Harta should sue the activist Andy Hall for misleading CBP.

Government just announced huge budget for healthcare which includes gloves / PPE.

Government just announced huge budget for healthcare which includes gloves / PPE.

But they all fail to realise that Supermax already has ready inventory of 400M as back up from last quarter that was held up due to container shortage. So no worries with 60% workforce.

You got to de better lah. This will not bring down to RM 2.

If not this IB warrant, the next, and the next, etc, etc. So once and for all just limit down to RM 2xxx. I am waiting. Simple as that. LOL.

IN light of so much scorns being poured over their abusive labour practices, two Malaysian Big-Four glove makers who recently came under the US Customs and Border Protection’s (CBP) spotlight have defended their manpower utilisation exercise.

Supermax Corp Bhd (SCB) said the company and its subsidiaries are committed to combatting forced labour and adhere to labour law regulations pertaining to migrant workers.

Its efforts are guided by international policies such as the 17 Sustainable Development Goals (SDG) and the International Labour Organization’s (ILO) 11 Indicators of Forced Labour (ILF), according to the company.

“We would like to reiterate that SCB is a member of Sedex, one of the world’s leading ethical trade service providers and we adhere to all the audit standards and Malaysian Labour Law,” the company pointed out in a media statement.

“We constantly review and conform our sustainable business practices, relating to our human resources with independent audit guidelines.”



Supermax further stressed that it abides to labour laws and regulations pertaining to recruitment of migrant workers. Its existing policies and procedures which are guided by local and international policies are constantly being reviewed for gaps if any, for further improvements.

“To validate our continuous efforts to strengthen our social compliance, the company had proactively commissioned and successfully undergone a SMETA audit (Sedex Members Ethical Trade Audit) conducted by independent international auditors,” the glove maker noted.

“SMETA is an ethical audit format which reports on Sedex’s four pillars of labour, health, safety and environment in reflecting good business ethics.”

Hartalega does its part

Meanwhile, Hartalega Holdings Bhd implements a 60-hour work per week as opposed to the general industry standard practice of 72 hours per week.

“The shorter duration of working hours per week is similar to those in the manufacturing line under the electronics industry,” divulged Malacca Securities Research analyst Kenneth Leong who recently attended a virtual briefing by the glove maker.

“To underline the importance of workers welfare, workers are provided with one rest day per week.”



With regard to fee payment, the research house shared that Hartalega has in 2019 embarked on a programme to reimburse migrant workers who paid recruitment fees.

A total of 49% of 4,153 migrant workers who were hired before the implementation of zero-cost recruitment from April 1. 2019 were interviewed in May 2020.

In August 2020, Hartalega became the first glove company to self-initiate reimbursement of recruitment fees.

By April 2021, more than 1/3 of full reimbursement has been completed and the reimbursement process will be accelerated with completion targetted for mid-June 2021. Total reimbursement would add up to RM40 mil.

Meanwhile, reimbursement of recruitment fees to former workers will begin in June 2021 which entails absconded workers, repatriated workers, workers on leave and/or stranded in their home countries due to the COVID-19 impact and workers who failed medical screening or had returned home.

“We gather that 82 former workers have been contacted to-date,” revealed Malacca Securities Research. “We note that the reimbursement programme is validated by an independent third-party organisation with proven track record in social compliance and recruitment fee remediation to conduct interviews with affected workers.”

“The reimbursement amount is touted to be comparable to other factories that are currently performing similar repayments to workers as well as slightly higher than the cross-sectorial data,” added the research house. – May 31, 2021



https://focusmalaysia.my/markets/malaysian-glove-makers-pledge-full-compliance-to-esg-practice/

https://www.malaymail.com/news/malaysia/2021/05/31/malaysias-supermax-says-abiding-by-labour-laws-after-report-on-u.s.-probe/1978377


KUALA LUMPUR, May 31 — Malaysian glove maker Supermax Corp on Monday said it adhered to labour laws on treatment of migrant workers, after a report that the United States was investigating a unit over forced labour allegations.

On Saturday, the Edge Weekly said US Customs and Border Protection (CBP) is investigating Malaysian glove makers Hartalega Holdings and a unit of Supermax.

The CBP said in an email it does not comment on whether specific entities are under investigation.

Supermax and its subsidiaries are committed to combatting forced labour and adhere to labour law regulations, the company said in a statement.

It added that it followed laws on recruitment of migrant workers.

“Existing policies and procedures, guided by local and international policies, are constantly being reviewed for gaps if any, for further improvements,” it said.

Hartalega also said on Saturday it strictly adhered to labour laws and regulations on recruitment of migrant workers, and its efforts to combat forced labour are guided by local and international policies.

Malaysian firms have increasingly come under regulatory scrutiny over allegations of abuse of foreign workers, who form a significant part of the country’s manufacturing workforce.

In the last year, the CBP banned US imports from three Malaysian firms on suspicions of forced labour: Top Glove, the world’s biggest latex glove manufacturer, and two top palm oil producers.

Top Glove said in April it has resolved all indicators of forced labour found at its factories. But the ban remains in place.

Earlier on Monday, Reuters reported that American manufacturer Goodyear Tire & Rubber Co is facing accusations of unpaid wages, unlawful overtime and threats to foreign workers at its Malaysian factory, according to court documents and complaints filed by workers. — Reuters

Anyways made some good gains in pharma.

Disappointed was waiting for limit down. Still waiting for RM 2xxx.

Singapore Tan Tock Seng hospital - The Nurse was already vaccinated with Pfizer 2 doses. After a few months later she has been infected with Covid 19 and has spread to many in contact with her. Would you want someone like that to vaccinate you without wearing new gloves. ?

Also its the other way around you dump ass. Pre pandemic RM 1xxx to now RM 4xxx. You all keep barking it will go back to pre pandemic. So need to work harder LOL.

At RM 10, many already cashed out and made their money already. Now 2nd and 3rd round. Its you naysayers who are here day and night trying to instil fear. The latest is the CBP investigation. You need to try harder to earn your commission from your bosses. Soon they will say thank you and we do not need you anymore.

Its new norm for most countries especially USA, Europe, Australia, India, Indonesia, etc, etc to use new glove for each vaccination. New variants are now airborne and easily transmittable even by touch and contact. So this is to prevent the medical staff and the patient. New glove for every vaccination dose.

Low volume. Also IBs manipulation and RSS. Anyways naysayers, I am sure you can do better. Only drop 8 cents. Poor job. Soon your bosses will stop paying you.

greedy44 - your blog article is actually saying with the glove ASP normalizing gradually, the TP is about 11.19. This is based on the articles analysis.

That is because their focus is vaccination LOL. No more testing.

The demand for glove now is driven by mass vaccination. New pair for every dose of vaccine. This is the new norm in the USA, Europe, Australia, Malaysia, Indonesia, India, etc, etc. Also with the many new variants, Covid 19 is endemic (never ending). So booster jabs annually. So the demand for gloves will continue forever and the supply will only lag.

Many gloves may not have FDA approvals like the Malaysian gloves. Yes, you can buy them at Lazada, Shopee, etc at discount but the medical sector will only buy glove that are FDA approved. Its like you buying Rolex / Swatch / Nike / Addidas in Chow kit and Petaling Street.

The demand for glove now is driven by mass vaccination. New pair for every dose of vaccine. This is the new norm in the USA, Europe, Australia, Malaysia, Indonesia, India, etc, etc. Also with the many new variants, Covid 19 is endemic (never ending). So booster jabs annually. So the demand for gloves will continue forever and the supply will only lag.

Many gloves may not have FDA approvals like the Malaysian gloves. Yes, you can buy them at Lazada, Shopee, etc at discount but the medical sector will only buy glove that are FDA approved. Its like you buying Rolex / Swatch / Nike / Addidas in Chow kit and Petaling Street.

The demand for glove now is driven by mass vaccination. New pair for every dose of vaccine. This is the new norm in the USA, Europe, Australia, Malaysia, Indonesia, India, etc, etc. Also with the many new variants, Covid 19 is endemic (never ending). So booster jabs annually. So the demand for gloves will continue forever and the supply will only lag.

Many gloves may not have FDA approvals like the Malaysian gloves. Yes, you can buy them at Lazada, Shopee, etc at discount but the medical sector will only buy glove that are FDA approved. Its like you buying Rolex / Swatch / Nike / Addidas in Chow kit and Petaling Street.

The Stoppage of work at the Kuala Pilah factory is because of a few Covid 19 positive cases. This is only until full sanitization has been completed 8th June. So just for 1 week.

As a result of the temporary closure of the affected plant, the capacity loss is estimated to be less than 5% of the total annual output volume.

Only less than 5% annual output.

Careplus has a huge market in Brazil. In Brazil, the new cases have just been increasing and remaining at 75K new cases for weeks and months. That is why Careplus PAT was huge and will remain huge for many many quarters. In fact since Covid 19 is endemic (never ending), this is going to be the new norm especially with all the new variants.

This is the full write up without the charts. Go to the link above to see the charts.

" A blogger in this forum has raised the alarm that there could be an over-supply of gloves and equated it to a tomato glut. I think many holders of glove stocks will have been jolted by it. But the basis on which the blogger came to that conclusion is clearly wrong as you will see below.

Yes the prices of gloves are declining, but is there a glut? Should glove investors be fearful?

To answer these questions, let’s start by going through the principles of supply and demand and examine the market dynamics of the glove sector.

The price of any product, when there is excess supply, will drop and it will drop until the excess stocks are cleared and the price will stabilise. It is a natural law of economics. And once excess stocks are cleared, manufacturers will only produce to order, even if they have excess capacity, because no company will produce to sell at a loss. So price dropping in an over-supply situation is temporary and prices will revert to a level that is profitable to the manufacturer.

New entrants to the market will have a higher production cost than the established leaders. Therefore, when market price stabilises, it will stabilise at a level that gives the established companies a higher margin than the new ones. And the products of market leaders, like Top Glove, Harta, Supermax and Kossan will also be able command premium prices because of their branding and a long track record of assured quality.

The blogger claimed that Vastar Gloves from China are selling at 50% discount on Singapore Lazada at S$17.22 per 100 pcs or S$170.22 per 1000 or US$130.10 per thousand. This would probably translate to an export price of US$65 per thousand. This price is not so bad. Our Malaysian glove manufacturers will be quite happy with it. A price of US$65 per 1000 does not justify the depressed prices of glove shares today as you will see from my calculations below. This blogger obviously does not understand glove pricing well.

The claimed over-supply of gloves by the blogger is not based on credible industry sources but on erroneously jumping the gun when he saw the 50% discount advertised in Lazada Singapore.

In all likelihood, these gloves may not have proper certifications, or they may be from new players who don’t have the market network to sell into the high glove consuming markets. Hence they are selling on online stores whose shoppers are less discerning.

GLOVES ARE NOT LIKE TOMATOES. Medical and food grade gloves have stringent specs and are regulated by FDA in the US and equivalent authorities in Europe, China, Japan and other developed countries.

In an article published in the Edge in March this year, the Malaysian Rubber Glove Manufacturers Association (MARGMA), expects global supply of rubber gloves to reach 420 billion pieces this year, some 80 billion pieces short of the projected demand of 500 billion pieces. And glove demand is expected to be robust until the second quarter of 2022 (2Q22) as new norms due to Covid-19 are expected to stay and sustain current elevated demand, said MARGMA president Dr Supramaniam Shanmugam.

Another factor that could limit the expansion of glove supply is the tight supply of Nitrile Butadiene Rubber (NBR). NBR is not just required for the glove industry but also for the automotive, oil & gas and other industries. NBR production is only expected to increase by 5% per year.

The shortage of NBR together with the current shortage of natural rubber and the tight labour market in Malaysia mean that THE CLAIMED OVER SUPPLY OF GLOVES BY THE BLOGGER IS AN IMAGINARY ONE.

Post pandemic, according to MARGMA, demand for gloves will still grow more than pre-Covid-19 rates, with an estimated annual growth of between 12% and 15%, compared with an annual growth of 8% to 10% before Covid-19.


SHOULD YOU SELL YOUR GLOVE STOCKS NOW??

The answer to this question depends on what you think the ASP of gloves will be post pandemic.

Based on the Frost & Sullivan report, the ASP of gloves could be around USD44 per thousand in 2022.

If we assume USD40 is the maintainable ASP post pandemic and apply it to the numbers given at Supermax’s 3QFY2021 results briefing, Supermax’s shares (as indeed the shares of the entire glove sector) is grossly undervalued

Maxsuper - its not how market value Super, its how IBs, RSS , etc manipulate Super. You need to do a better job tomorrow. If not you are out of a job. LOL

No worries Naysayers. Go do a better job tomorrow and next week. I am waiting at 2.

Moneymaker obviously cannot read as well besides being a Dumb Ass - USD 65 is the ASP price LOL. Not Spot Price.

To all naysayers. We are not worried at all if share price drop. We are investors not gamblers. Mid to long term Supermax will go beyond RM 8. Probably RM 11 - 12 within the next 6 - 12 months. But please panic sell now, so we can collect cheap.

As of now the naysayers are not doing a good job. Why still at RM 4. ? I am sure you can do better.

Again brian3381 is using his Ass to think. This is only an investigation if there is merits in the complaint. Before all this Supermax has already put in measures to ensure they comply to all labour laws. So there is no need to be disturbed about all these complaints. Same in Canada, Supermax has already cleared its name. LOL. So no need to fear monger about any blacklist. The USA is getting 500M FDI, technology and employment opportunity for its citizens. The plan is already well on the way. The presentation already accepted.

A blogger in this forum has raised the alarm that there could be an over-supply of gloves and equated it to a tomato glut. I think many holders of glove stocks will have been jolted by it. But the basis on which the blogger came to that conclusion is clearly wrong as you will see below.

Yes the prices of gloves are declining, but is there a glut? Should glove investors be fearful?

To answer these questions, let’s start by going through the principles of supply and demand and examine the market dynamics of the glove sector.

The price of any product, when there is excess supply, will drop and it will drop until the excess stocks are cleared and the price will stabilise. It is a natural law of economics. And once excess stocks are cleared, manufacturers will only produce to order, even if they have excess capacity, because no company will produce to sell at a loss. So price dropping in an over-supply situation is temporary and prices will revert to a level that is profitable to the manufacturer.

New entrants to the market will have a higher production cost than the established leaders. Therefore, when market price stabilises, it will stabilise at a level that gives the established companies a higher margin than the new ones. And the products of market leaders, like Top Glove, Harta, Supermax and Kossan will also be able command premium prices because of their branding and a long track record of assured quality.

The blogger claimed that Vastar Gloves from China are selling at 50% discount on Singapore Lazada at S$17.22 per 100 pcs or S$170.22 per 1000 or US$130.10 per thousand. This would probably translate to an export price of US$65 per thousand. This price is not so bad. Our Malaysian glove manufacturers will be quite happy with it. A price of US$65 per 1000 does not justify the depressed prices of glove shares today as you will see from my calculations below. This blogger obviously does not understand glove pricing well.

The claimed over-supply of gloves by the blogger is not based on credible industry sources but on erroneously jumping the gun when he saw the 50% discount advertised in Lazada Singapore.

In all likelihood, these gloves may not have proper certifications, or they may be from new players who don’t have the market network to sell into the high glove consuming markets. Hence they are selling on online stores whose shoppers are less discerning.

GLOVES ARE NOT LIKE TOMATOES. Medical and food grade gloves have stringent specs and are regulated by FDA in the US and equivalent authorities in Europe, China, Japan and other developed countries.

In an article published in the Edge in March this year, the Malaysian Rubber Glove Manufacturers Association (MARGMA), expects global supply of rubber gloves to reach 420 billion pieces this year, some 80 billion pieces short of the projected demand of 500 billion pieces. And glove demand is expected to be robust until the second quarter of 2022 (2Q22) as new norms due to Covid-19 are expected to stay and sustain current elevated demand, said MARGMA president Dr Supramaniam Shanmugam.

Another factor that could limit the expansion of glove supply is the tight supply of Nitrile Butadiene Rubber (NBR). NBR is not just required for the glove industry but also for the automotive, oil & gas and other industries. NBR production is only expected to increase by 5% per year.

The shortage of NBR together with the current shortage of natural rubber and the tight labour market in Malaysia mean that THE CLAIMED OVER SUPPLY OF GLOVES BY THE BLOGGER IS AN IMAGINARY ONE.

Post pandemic, according to MARGMA, demand for gloves will still grow more than pre-Covid-19 rates, with an estimated annual growth of between 12% and 15%, compared with an annual growth of 8% to 10% before Covid-19.


SHOULD YOU SELL YOUR GLOVE STOCKS NOW??

The answer to this question depends on what you think the ASP of gloves will be post pandemic.

Based on the Frost & Sullivan report, the ASP of gloves could be around USD44 per thousand in 2022.

If we assume USD40 is the maintainable ASP post pandemic and apply it to the numbers given at Supermax’s 3QFY2021 results briefing, Supermax’s shares (as indeed the shares of the entire glove sector) is grossly undervalued

Who is this Andy Hall that complaint to CBP. He is a Nepal Based Independent Labour Rights Activist. Not American based. When CBP realises that there are no violations, NFA - No further action.

There will be many human rights activist like Andy. See China and their labour conditions. India and their labour conditions. Indonesia, etc, etc. Why no drama here. All because of the huge business generated.

Dont forget 400M was donated by the big 4 glove manufacturers for the vaccination the Government is giving for free to all including foreigners. Not to mention millions of gloves donated for free. All these are to save the lives of Malaysians and Foreigners.

So we and the Malaysian Government will surely defend accusations with no merits.

Supermax can get into the klci index anytime. 4B cash, manufacturing plant in the US and Europe will surely put its share price above RM 8 soon. Remove the manipulators, RSS, IB warrants and you will see this counter shoot. So KLCI index has no bearing and significance to a market that is based on manipulation.

The CBP said in an email it does not comment on whether specific entities are under investigation.

Mr Hall confirmed to Reuters that he had received the letters.

So this is basically from a labour rights activist.

This may be a good thing for Supermax - Now they can present to the CBP how good their provisions and regulations are for their work force.

Again brian3381 is using his Ass to think. This is only an investigation if there is merits in the complaint. Before all this Supermax has already put in measures to ensure they comply to all labour laws. So there is no need to be disturbed about all these complaints. Same in Canada, Supermax has already cleared its name. LOL. So no need to fear monger about any blacklist. The USA is getting 500M FDI, technology and employment opportunity for its citizens. The plan is already well on the way. The presentation already accepted.

If glove got no hope, then why would anyone buy glove stock? Why would it go up? makes no sense.
Its short term that is being manipulated.
Long term is very bullish. With 4B in hand, USA manufacturing plant, expansions in Malaysia, economics of scale and scope to balance the ASPs, OBM, OEM, own distribution, own brand, lowest cost to maintain profit margins, - all are great indicators of strong fundamentals - 25B glove annual demand just in the USA for medical sector.

Brian3381 - go and see for yourself in the vaccination centers. See the videos posted when vaccinations are being done in the USA, malaysia, Australia, Indonesia, etc, etc.

Go to the vaccination centers in Malaysia LOL. See for yourselves. This is to keep you and your family safe LOL.

Anyways, the demand is now in each pair of glove used for ease dose of vaccination. The new norm most countries is to use new gloves for every vaccination. New variant is spreading fast and can transmit by air and touch / contact, etc.

Why now money maker taking neutral stand. ? Are you afraid it will drop below RM 2? Then your IB warrants, RSS all get trapped. ?

We are not afraid, because strong fundamentals and glove demand will continue to grow and supply will always lag behind. This fall in price is temporary and to weed out the weak players.

So for those who have the holding power and able to collect more, lets agree with the naysayers that glove has no hope.

Singapore planning for possibility that Covid-19 becomes endemic here, says Lawrence Wong

http://starmedia.ncm32.com/vtrack?clientid=71316&ul=UAMFAA4OABpXRA0HXFdcXEVRGglAeVZaWFldTFtXWR4JUw5cWFVLUEhYQCNRVFhfWhoCXwlO&ml=UwACDkUJTldfDFVTTA==&sl=I0hyRGxqTjUrbBoVRFNAVVJUXQMaV1JaCgIfAVdVSFI=&pp=0&&fl=CUBFSEoDHUkRTxFIRFpXS0NRRkxXVlwZVEkeA0tdVQwSXhdKGVBKVAddRA9DShRYU0MSH1YCUAZOAgceAAEXSwhaVllJVkADS0gKB15cW1ZQHVINRhRBWEpDWABRVF0WGx8WUVdFFFIJRV0HGwgAG1RRAl8JVxEaBFxWVF9RWxUJUUNdFEpTHxUVCgdHQFdWVFUZFVtXVg==&ext=dXRtX3NvdXJjZT1TbWFydGVjaCZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1kYWlseW5ld3NhbGVydCZ1dG1fY29udGVudD0yMDIxMDUzMA==

By the way, the unit of Supermax that cbp is inquiring is the mask manufacturing plant and this has been already cleared with the Canadian authority. Non issue. That's why Supermax did not bother responding to Reuters. All blowing hot gas. Maybe new Covid 19 symptoms.

Supermax has 4B cash pile to invest in any business, even buy over any business. Their business modal, work ethics have been well presented to the US government and that is why they have been accepted to start manufacturing plant and transfer of technology to the USA.

To all DUMP ASSES - your responses only show how envious your are of Supermax.

They can investigate but nothing to hide. This forum is for glove fans. What the F are you barking here for. F off to Genting and AA. Loss making.

Cases in the UK are rising back from 2K to now 4K. New variants are emerging.

There is no merits that Supermax is involved in forced labour. Their workforce are all well motivated and well taken cared off. None of the laws and labour requirements were violated. This was confirmed by our own ministry when a full scale investigation was performed on all glove manufacturers. Only TG was found to have violated and was fined.

So all just full of gas and fake allegations.

Nevertheless, I too am hoping for the share to plunge to RM 2 or below. So that we can trap all the manipulators , RSS and IB warrants. Will go in big and wait for the show to begin.

Look who is talking again through his ass. Why is money maker still here? This forum is for glove fans not for naysayers. So why is money maker still here? To show his ass talking skills. Ha Ha ha.

MoneyMaker using his ass again to speak. Ha Ha ha.