RM1.75 by friday is reasonable expectation?

if Taiwan choose to unify with some countries.... china would be the last choice.... why would you get Singapore to unify with Malaysia? that is much easier and more practical, right?

Macquarie Equities Research (MQ Research) initiates coverage on the Malaysia gloves sector, with a view that the glove manufacturers have production cost advantages over its China peers and any newer entrants. Although average selling price uncertainty lingers, valuations have turned attractive with all three glove makers trading at EV/share below pre-pandemic levels.

MQ Research names Kossan as its top pick within the sector. Read on for MQ Research’s order of preference and target prices in an excerpt of the report dated 19 November 2021. Also, check out the associated Macquarie warrants over the glove names below.


Negatives are priced in

Incoming China glove supply threatens Malaysian manufacturers’ market share. However, MQ Research believes these negatives are priced in as share prices have now fallen 70-75% from pandemic highs. MQ Research believes large-cap Malaysia glove makers have a 25-35% production-cost advantage over China peers. MQ Research initiates on Malaysia’s glove manufacturers as valuations turn attractive despite average selling prices (ASP) in flux. All three glove makers in MQ Research’s coverage are trading at an enterprise value per share (EV/share) below pre-pandemic levels. If shares decline a further 10-15% - which MQ Research believes to be the absolute bottom – MQ Research sees an attractive entry point. ASPs are quickly declining (currently US$35-40 vs. mid-21 US$85-90 per ‘000 pieces), and MQ Research’s top pick Kossan’s differentiated product mix shields it from potential global oversupply. Kossan is trading at a steep discount to peers (post-pandemic PER discount to TopG/Hartalega of ~15%/ 50%) and at about half their pre-pandemic EV/share.


Production cost advantage over China/new entrants

China: MQ Research estimates that China glove manufacturers currently have 25-35% higher production costs vs. large-scale Malaysia manufacturers due to higher fuel and labour costs. If global oversupply occurs, and prices continue to decline, MQ Research believes Malaysian large-scale manufacturers will be the last to turn unprofitable. However, MQ Research expects China producers to continue to add capacity until costs normalise despite downward pressure on margins.

New entrants: MQ Research expects newer entrants in glove manufacturing to quickly become unprofitable as ASPs dive below production cost. Newer glove producers have an estimated production cost of US$35-40 per ‘000 pieces (vs. existing players of US$20-23). MQ Research believes newer players will either abandon expansion plans or exit the industry altogether.


Post-pandemic supply-demand outlook

Frost & Sullivan expects disposable glove demand to deliver a 15.9% volume compounded annual growth rate (CAGR) post-pandemic (2019-2025F) vs. 8.2% pre-pandemic due to increased hygiene awareness. MQ Research forecasts China producers to account for 24% of global supply post-pandemic (2023E) vs. 10% pre-pandemic (2019). MQ Research expects long-term ASPs to settle at US$24-26 per ‘000 vs. street estimates of US$25-30 on increased price pressure from China manufacturers. This is structurally higher than pre-pandemic prices of US$20-22 due to higher social compliance costs.


Valuations are now compelling; Kossan is MQ Research’s top pick

MQ Research uses a price-earnings ratio (PER) methodology to value glove manufacturers, applying MQ Research’s target multiples to post-pandemic FY23E/24E earnings per share (EPS) – years when MQ Research expects ASPs to stabilise. MQ Research’s multiples of 15x-21x represent between a -1.0SD to -0.25SD discount to pre-pandemic sector/company historical averages. Post-pandemic ASP uncertainty and labour practice issues linger. MQ Research’s order of preference is Kossan (OP) > Hartalega (OP) > Top Gloves (N).


12-month target price methodology


TOPG MK: RM2.60 based on a PER methodology
HART MK: RM6.30 based on a PER methodology
KRI MK: RM2.70 based on a PER methodology

Macquarie Equities Research (MQ Research) initiates coverage on the Malaysia gloves sector, with a view that the glove manufacturers have production cost advantages over its China peers and any newer entrants. Although average selling price uncertainty lingers, valuations have turned attractive with all three glove makers trading at EV/share below pre-pandemic levels.

MQ Research names Kossan as its top pick within the sector. Read on for MQ Research’s order of preference and target prices in an excerpt of the report dated 19 November 2021. Also, check out the associated Macquarie warrants over the glove names below.


Negatives are priced in

Incoming China glove supply threatens Malaysian manufacturers’ market share. However, MQ Research believes these negatives are priced in as share prices have now fallen 70-75% from pandemic highs. MQ Research believes large-cap Malaysia glove makers have a 25-35% production-cost advantage over China peers. MQ Research initiates on Malaysia’s glove manufacturers as valuations turn attractive despite average selling prices (ASP) in flux. All three glove makers in MQ Research’s coverage are trading at an enterprise value per share (EV/share) below pre-pandemic levels. If shares decline a further 10-15% - which MQ Research believes to be the absolute bottom – MQ Research sees an attractive entry point. ASPs are quickly declining (currently US$35-40 vs. mid-21 US$85-90 per ‘000 pieces), and MQ Research’s top pick Kossan’s differentiated product mix shields it from potential global oversupply. Kossan is trading at a steep discount to peers (post-pandemic PER discount to TopG/Hartalega of ~15%/ 50%) and at about half their pre-pandemic EV/share.


Production cost advantage over China/new entrants

China: MQ Research estimates that China glove manufacturers currently have 25-35% higher production costs vs. large-scale Malaysia manufacturers due to higher fuel and labour costs. If global oversupply occurs, and prices continue to decline, MQ Research believes Malaysian large-scale manufacturers will be the last to turn unprofitable. However, MQ Research expects China producers to continue to add capacity until costs normalise despite downward pressure on margins.

New entrants: MQ Research expects newer entrants in glove manufacturing to quickly become unprofitable as ASPs dive below production cost. Newer glove producers have an estimated production cost of US$35-40 per ‘000 pieces (vs. existing players of US$20-23). MQ Research believes newer players will either abandon expansion plans or exit the industry altogether.


Post-pandemic supply-demand outlook

Frost & Sullivan expects disposable glove demand to deliver a 15.9% volume compounded annual growth rate (CAGR) post-pandemic (2019-2025F) vs. 8.2% pre-pandemic due to increased hygiene awareness. MQ Research forecasts China producers to account for 24% of global supply post-pandemic (2023E) vs. 10% pre-pandemic (2019). MQ Research expects long-term ASPs to settle at US$24-26 per ‘000 vs. street estimates of US$25-30 on increased price pressure from China manufacturers. This is structurally higher than pre-pandemic prices of US$20-22 due to higher social compliance costs.


Valuations are now compelling; Kossan is MQ Research’s top pick

MQ Research uses a price-earnings ratio (PER) methodology to value glove manufacturers, applying MQ Research’s target multiples to post-pandemic FY23E/24E earnings per share (EPS) – years when MQ Research expects ASPs to stabilise. MQ Research’s multiples of 15x-21x represent between a -1.0SD to -0.25SD discount to pre-pandemic sector/company historical averages. Post-pandemic ASP uncertainty and labour practice issues linger. MQ Research’s order of preference is Kossan (OP) > Hartalega (OP) > Top Gloves (N).


12-month target price methodology


TOPG MK: RM2.60 based on a PER methodology
HART MK: RM6.30 based on a PER methodology
KRI MK: RM2.70 based on a PER methodology

Macquarie Equities Research (MQ Research) initiates coverage on the Malaysia gloves sector, with a view that the glove manufacturers have production cost advantages over its China peers and any newer entrants. Although average selling price uncertainty lingers, valuations have turned attractive with all three glove makers trading at EV/share below pre-pandemic levels.

MQ Research names Kossan as its top pick within the sector. Read on for MQ Research’s order of preference and target prices in an excerpt of the report dated 19 November 2021. Also, check out the associated Macquarie warrants over the glove names below.


Negatives are priced in

Incoming China glove supply threatens Malaysian manufacturers’ market share. However, MQ Research believes these negatives are priced in as share prices have now fallen 70-75% from pandemic highs. MQ Research believes large-cap Malaysia glove makers have a 25-35% production-cost advantage over China peers. MQ Research initiates on Malaysia’s glove manufacturers as valuations turn attractive despite average selling prices (ASP) in flux. All three glove makers in MQ Research’s coverage are trading at an enterprise value per share (EV/share) below pre-pandemic levels. If shares decline a further 10-15% - which MQ Research believes to be the absolute bottom – MQ Research sees an attractive entry point. ASPs are quickly declining (currently US$35-40 vs. mid-21 US$85-90 per ‘000 pieces), and MQ Research’s top pick Kossan’s differentiated product mix shields it from potential global oversupply. Kossan is trading at a steep discount to peers (post-pandemic PER discount to TopG/Hartalega of ~15%/ 50%) and at about half their pre-pandemic EV/share.


Production cost advantage over China/new entrants

China: MQ Research estimates that China glove manufacturers currently have 25-35% higher production costs vs. large-scale Malaysia manufacturers due to higher fuel and labour costs. If global oversupply occurs, and prices continue to decline, MQ Research believes Malaysian large-scale manufacturers will be the last to turn unprofitable. However, MQ Research expects China producers to continue to add capacity until costs normalise despite downward pressure on margins.

New entrants: MQ Research expects newer entrants in glove manufacturing to quickly become unprofitable as ASPs dive below production cost. Newer glove producers have an estimated production cost of US$35-40 per ‘000 pieces (vs. existing players of US$20-23). MQ Research believes newer players will either abandon expansion plans or exit the industry altogether.


Post-pandemic supply-demand outlook

Frost & Sullivan expects disposable glove demand to deliver a 15.9% volume compounded annual growth rate (CAGR) post-pandemic (2019-2025F) vs. 8.2% pre-pandemic due to increased hygiene awareness. MQ Research forecasts China producers to account for 24% of global supply post-pandemic (2023E) vs. 10% pre-pandemic (2019). MQ Research expects long-term ASPs to settle at US$24-26 per ‘000 vs. street estimates of US$25-30 on increased price pressure from China manufacturers. This is structurally higher than pre-pandemic prices of US$20-22 due to higher social compliance costs.


Valuations are now compelling; Kossan is MQ Research’s top pick

MQ Research uses a price-earnings ratio (PER) methodology to value glove manufacturers, applying MQ Research’s target multiples to post-pandemic FY23E/24E earnings per share (EPS) – years when MQ Research expects ASPs to stabilise. MQ Research’s multiples of 15x-21x represent between a -1.0SD to -0.25SD discount to pre-pandemic sector/company historical averages. Post-pandemic ASP uncertainty and labour practice issues linger. MQ Research’s order of preference is Kossan (OP) > Hartalega (OP) > Top Gloves (N).


12-month target price methodology


TOPG MK: RM2.60 based on a PER methodology
HART MK: RM6.30 based on a PER methodology
KRI MK: RM2.70 based on a PER methodology

The Group’s revenue for the quarter under review of RM63.9 million was 10.9% lower as compared to the revenue registered in the immediate preceding quarter of RM71.8 million, which was mainly due to lower sales of the semiconductor and heavy duty segments in the current quarter. During the quarter under review, the Group encountered logistical challenges for certain semiconductor equipment due to the nationwide Movement Control Order 3.0 (“MCO 3.0”) effective from 12 May 2021. Also, the Group was only allowed to operate at 60% capacity until 6 July 2021. MCO 3.0 was further extended where the Group was allowed to operate at 80% capacity from 7 July 2021 to 19 August 2021.

Over a two-day PIKAS programme, more than 80% of the Group’s employees received two doses of vaccination. Hence the Group was allowed to operate at full capacity effective from 20 August 2021 following the recent updates from the National Recovery Plan. In addition, the Group’s strategy was to gradually exit from the heavy-duty business in order to dedicate capacity to more profitable and higher margin segments.

The Group recorded PBT of RM23.9 million, a decrease of 12.1% from RM27.2 million recorded in the preceding quarter. The lower profit, which was mainly attributed to the semiconductor and heavy duty industries’ lower revenue, was partially mitigated by the drop in other operating expenses as well as the increase in dividend income as a result of the improved financial position, with the healthy cash position that enabled the Group to invest in marketable securities.

CAREPLS QR out today or tomorrow?

Why does the sun go on shining
Why does the price drop to floor
Don't they know it's the end of the world

anyone dare to use Net Present Value to evaluate share price of Supermax?

I dunno.. but I will wait for hourly chart uptrend.... play technical this round.

once sellers done their selling, I will jump in to buy

Reported PATAMI for the quarter was impacted by one-off, non-cash provision of RM3.4 billion as a
result of the de-recognition and reclassification of Idea from associate to simple investment, as
announced on 27 July 2018.

i am fantasizing the new alternative fact: funds are selling CIMB.KL to switch over to AMBANK.KL.

kf911, i prefer V-shape than U-shape chart....

MA10 is at 4.33, can ambank just break it today? i want to slap the 4.30-4.31 sellers, why can't they dump everything in a day or two?!

how wrong could ambank be? as is tightly regulated by bank negara....

If sellers do not emerge in the afternoon session like how they did in last 2 days, I would be start buying......

My interpretation of the failed merger news as positive for share prices of AMBANK & RHBBANK.

Quarterly result is very good!

The company is offering 300 million new shares in the primary offering in an indicative range of 5.52–5.75 ringgit each, putting the total deal at up to 1.73 billion ringgit ($406 million), added IFR, a Thomson Reuters publication.

I will vote against the merger/acquisition unless I get cash RM6.90 per share, which is 1.3x book value of Ambank.

is CIMB going up further today? so boring ....

Buying stopped. Selling will start？

WCT share price is being engineered to remain below RM1.54 for a little while longer in order to force those desperate holders of WCT-WC to sell ....

I would like to announce that TM-CZ is currently trading at discount.

what court order? which case?

oh no...... BB, u still here fighting .... after so many months........

very happy with my AIRASIA-CY...... at 50% gain now from my purchase price.

RHB Research on Time Dot Com


Investment case. We initiate coverage on TdC with an Outperform recommendation and a fair value of RM5.10 after attaching a target PER multiple of 13.4x to its core (excluding DiGi’s dividends) FY13 EPS of 17.5 sen plus the value of the current 275m DiGi shares held (valued based on our RM5.40 fair value). The ascribed target PER to TdC is a 5% discount to its international peers to account for TdC’s much smaller scale of operations. However, we believe TdC’s growth prospects are good, which justifies only a small discount.


Lim Tee Yang, CFA

(603) 9280 2172

lim.tee.yang@rhb.com.my

Profile for Warrants

Amended Announcements
Please refer to the earlier announcement reference number: MI-110301-63287

WCT BERHAD

Instrument Type Warrants
Description Adjustment to the exercise price of WCT-WB
Listing Date 28/04/2008
Issue Date 23/04/2008
Issue/ Ask Price MYR 0.2500
Issue Size Indicator Unit
Issue Size in Unit 139,887,452
Maturity Date 22/04/2013
Revised Maturity Date
Exercise/ Conversion Period 5.00Year(s)
Revised Exercise/ Conversion Period
Exercise/Strike/Conversion Price MYR 2.5000
Revised Exercise/Strike/Conversion Price MYR 1.8500
Exercise/ Conversion Ratio 1 Warrant : 1 WCT Share
Revised Exercise/ Conversion Ratio
Mode of satisfaction of Exercise/ Conversion price Cash
Settlement Type/ Convertible into Physical (Shares)

Remarks :
The exercise price for the warrants 2008/2013 held in WCT Berhad ("WCT") ("WCT-WB") has been revised from RM2.50 per ordinary share of RM0.50 each held in WCT ("WCT Share(s)") to RM1.85 per WCT Share in accordance with the provisions of the deed poll dated 12 March 2008 constituting the WCT-WB ("Deed Poll 2008/2013"), as a consequence of the Bonus Issue of Shares and Bonus Issue of Warrants, of which details pertaining to these corporate exercise undertaken by WCT are set out in the announcement dated 6 September 2012.

Further, in accordance with the provisions of the Deed Poll 2008/2013, the said adjustment to the exercise price of WCT-WB takes effect from 11 December 2012 (as at the date hereof), being the next market day following the entitlement date for the Bonus Issue of Shares and Bonus Issue of Warrants.

A notice setting out the details of the adjustment to the exercise price of WCT-WB pursuant to the Bonus Issue of Shares and Bonus Issue of Warrants will be despatched to the holders of WCT-WB in due course.

This announcement is dated 11 December 2012.

Profile for Warrants

Amended Announcements
Please refer to the earlier announcement reference number: MI-110301-63287

WCT BERHAD

Instrument Type Warrants
Description Adjustment to the exercise price of WCT-WB
Listing Date 28/04/2008
Issue Date 23/04/2008
Issue/ Ask Price MYR 0.2500
Issue Size Indicator Unit
Issue Size in Unit 139,887,452
Maturity Date 22/04/2013
Revised Maturity Date
Exercise/ Conversion Period 5.00Year(s)
Revised Exercise/ Conversion Period
Exercise/Strike/Conversion Price MYR 2.5000
Revised Exercise/Strike/Conversion Price MYR 1.8500
Exercise/ Conversion Ratio 1 Warrant : 1 WCT Share
Revised Exercise/ Conversion Ratio
Mode of satisfaction of Exercise/ Conversion price Cash
Settlement Type/ Convertible into Physical (Shares)

Remarks :
The exercise price for the warrants 2008/2013 held in WCT Berhad ("WCT") ("WCT-WB") has been revised from RM2.50 per ordinary share of RM0.50 each held in WCT ("WCT Share(s)") to RM1.85 per WCT Share in accordance with the provisions of the deed poll dated 12 March 2008 constituting the WCT-WB ("Deed Poll 2008/2013"), as a consequence of the Bonus Issue of Shares and Bonus Issue of Warrants, of which details pertaining to these corporate exercise undertaken by WCT are set out in the announcement dated 6 September 2012.

Further, in accordance with the provisions of the Deed Poll 2008/2013, the said adjustment to the exercise price of WCT-WB takes effect from 11 December 2012 (as at the date hereof), being the next market day following the entitlement date for the Bonus Issue of Shares and Bonus Issue of Warrants.

A notice setting out the details of the adjustment to the exercise price of WCT-WB pursuant to the Bonus Issue of Shares and Bonus Issue of Warrants will be despatched to the holders of WCT-WB in due course.

This announcement is dated 11 December 2012.

how u get rm1.95???


my projection is only upto 1.93 ...

Notice to Holders of Warrants 2008/2013 (“Warrants B”) of WCT Berhad (“WCT” or “the Company”)

WCT BERHAD

Type Announcement
Subject OTHERS
Description Notice to Holders of Warrants 2008/2013 (“Warrants B”) of WCT Berhad (“WCT” or “the Company”)

Reference is made to the Company’s announcement on 23 November 2012 in relation to the Entitlement Date for the Bonus Issue of Shares and Bonus Issue of Warrants.
Please be informed that the exercise price for the Warrants B held in WCT will be adjusted in accordance with the provisions of the deed poll dated 12 March 2008 constituting the Warrants B ("Deed Poll 2008/2013"), as a consequence of the Bonus Issue of Shares and Bonus Issue of Warrants, of which details pertaining to these corporate exercise undertaken by WCT are set out in the announcement dated 6 September 2012.
Further, in accordance with the provisions of the Deed Poll 2008/2013, the said adjustment to the exercise price of Warrants B will take effect from 11 December 2012, being the next market day following the entitlement date for the Bonus Issue of Shares and Bonus Issue of Warrants.
This announcement is dated 6 December 2012.


----- means we get to know new exercise price before market open on 11 dec?

please dont overly obsessed with 1.85 as new exercise price for WCT-WB... It could be as high as 1.93 as the new exercise price.....

talk2pkc, i paint the way i like, u imagine the same way as bull bear .... 'fat profit' is a term used by bull bear.. u seem so genetical resemblance to him in attracted to the same english word............. god loves and bless everyone............ no point repeat the obvious.

TALK2PKC, what make you think my 'ego' is about share naming or picking? ... u ok or not? u assuming money can only be made when price 'rocket' ? u seems live in the same fantasy and same roof as bullbear.

talk2kc, u think is fat profit for 10%?? u are mother of bullbear?

TALK2PKC, FROM 2.81 TO 3.10 ..IS WHAT PERCENTAGE? U KNOW HOW TO CALC?

more news coming? looks very promising...

if airasia recent movement can considered FAT PROFIT???? you still kids in small pond......

well... some boring dealer (in this forum) in institution desk might able to call their client ..to bs some high beta position strategy for their 4th quarter rallly to enhance their fund performance by leverage on the price support by EPF and Tony Fenandez.

I am not predicting.. i am demanding desperate or big buyer to appear.

anyone can please help airasia to break 3.10 ...please......................ANYONE!!!!!

VERY FIRM BUYNG AT 1.68 wor................. party start again ...?? tomorrow?

life itself is a mutiple sessions continuous gamble.

wow ....this year budget day selling........ can rebound one wor................

means....... very likely stockbrokers got CD order with the mandate to mark closing price at certain level.

talk2pkc, after u sold your stocks.. now u need him ........

talk2pkc, your target price always very conservative and non-agressive at all.......

any reivision of today projected target closing price???