Greatech releasing QR this week? With such strong downtrend, hope that a good report can reverse the trend.

Glove prices already stabilised, and will be out of rotation play for a long time. With good management, the upward potential are quite likely with little downside risk (how much lower can it go? I am still waiting for RM4.50). Long-term investors should consider adding some into their portfolio.

Don't buy and sell based on rumours. What if some big fish make-up silly story, you sell then cheap2 they thank you very much

Possible that tech is going through major corrections. Many tech counter also going through this phase. Whether bubble or not I can't tell. If you think company is overvalued, but has good fundamentals, either (1) average down or (2) cut loss and enter later.

Remember that when banks give high (unrealistic) target price, better be careful and take their advice with some garam. Remember back in 2020 when most banks (except JPM) give TP30++ for Topglove?

Drop at this rate can kutip at RM4.00 on 4.44pm

Another insider trading? Will be pissed off if that is the case.

Friday drop, today drop, tomorrow maybe drop. Just like gloves, no point rushing to average down. Wait for price to stabilised, then enter.

Walao, 15 mins open oredi shave off 20 sen? Tech correction inkambing?

Why must it be Harta vs Kossan? Why not invest in Harta and Kossan? Put some pocket money in both counters, wait 10 years and then enjoy your returns.

Now Harta oredi close to 52 week low, still want to wait until it reached RM3? RM2? Just wait lor, maybe can buy after stock split.

You think only nons drink? When gomen wanna ban drinking, better first learn about US Prohibition period.

If Chinese glove companies consistently make losses because of their higher production cost, it may either force them to innovate and cut cost, or be more hesitant to expand further. Of course top 4 margin will kena squeeze by higher competition, so will be interested in next QR to look at its impact on profit margin. Want to play safe, can invest later. Want to gamble, can buy now.

Topglove QR is next month yes? Something to keep an eye on.

MPI is a solid company. Strongly consider adding some if it falls around RM25-RM30.

I have dabbled in rallies such as the 2020 glove rally (cabut too late), and 2021 tech rally (cabut too early). Made some good and bad calls during these 2 years. Nobody really knows for sure when the cycle ends. Enter if you think have potential or exit whenever you feel the situation is too giler and don't beat yourself if you cabut too early or too late. Better earned a bit of pocket money than lose your seluar dalam.

Both Harta and Kossan can buy at the right price. Don't be like maroon Natsuko tiap2 hari shilling for Dnex. Tapi today diam2 je.

@Ryan83, true, which is why we expect Supermax performance to be worse than Harta/Kossan. Since the CBP ban supermax price suffer the greatest drop, already well below many analyst target price. Should recover some of those losses once bans are lifted.

Supermax result is expected to be bad, but if the drop is similar to Kossan/Harta (i.e. not that bad), then this counter has potential to move up.

Supermax result should be interesting because results should be worse because of US CBP ban. But if Supermax result is similar to Kossan/Harta, prices should fly, so most interesting counter to keep watch.

Kossan QR just came out, and they are very similar to Harta's current QR. With that info, I don't think prices are going up anytime soon. In fact, very likely it may trend downwards below RM5.

As a long-term holder, all I can hope is a better-than-expected next quarter report. Currently watching the trend and see if I can accumulate some below RM4.80. Aside from that, not much to be said.

Dividend may not be as high the next fiscal year, but this glove stocks pays the most at current price.

Actually not too bad when compared with Topglove and Harta. May push up Kossan price tomorrow.

waiting for Kossan QR. should be out this week

@pang72 Ya lor. Sailang Dnex at 1.24, sell at 1.60. Have more money to buy moar AYS, untung besar kan?

Very obvious KYY is using Dnex to promote his share. Why?
1) He probably doesn't own Dnex in the past, so he made up "selling Dnex" even though it is a rising counter. Why not wait a bit longer and make a larger profit?
2) He is trying to imply that his counters are much better than Dnex. Look, I just sold a rising counter (Dnex) but I am still keeping these counter (these are much bettah), you should buy and hold them too!

Okay KYY, you do you lah.

natsuko is a prime example on how not to invest. Jumping from one hot counter to another, hoping to earn money from riding the bull's tail. More often than not kena bakar during the process and then cry father cry mother (for more money).

Now this fella go to every glove counters and shill for Dnex, which already at 52-week high and climbing. Shorties are already waiting at Dnex doorstep, waiting for their next move.

@winsenlim68, yes demand for gloves in 2022 and 2023 is 10 to 15 percent higher, but prices may fall if glove supply increase by 20 to 30 percent.
Just hope that glove demand can keep up with capacity expansion, or at the very least Harta can keep cost down.

@observatory. Thanks for the info. While we may be reaching a turning point faster than expected, I am not sure how I feel about it. If the Chinese are wary of committing additional capital into long-term expansion, does it imply that future growth in the demand for gloves is quite limited?

@ming 3 months? I give it less than 3 weeks. Bursa kaki now buying oil counters.

@TillyLovers unlikely since it is only 8 days away...unless there are important events such as:
1. Kossan QR is much better than expected (similar or above previous QR)
2. Unforeseen events that cripple Chinese manufacturing (Andy Hall takes on Chinese glove manufacturers)
3. WHO announces a new variant of concern (much worse than Delta)

>>>TillyLovers will Harta break RM5.50 before dividend been distributed？

With falling ASP, we expect profit and price to fall for the next two quarters. So there is no need to rush and buy.

Will higher cases cause price to rise? In Malaysia where most people are fully vaccinated, it does not necessarily translate to higher hospitalisation or surge in glove demand. That may not be true for countries that cannot buy enough vaccine to supply their population, but then again those countries may not be Harta's main client.

In the meantime, waiting for QR from Kossan and Supermax. Supermax's result should be interesting since they kena ban by U.S., one of their main clients.

@Anxious

Might also want to keep an eye on Kossan's QR, it should come out anytime soon (maybe next week). If Kossan result is similar to Harta's expect price to move down. But if Kossan's result is better than expectation, we may see a small rebound in price.

Also it is always good to have a diversified portfolio. Put a little of each in banking, consumer goods, plantation, oil and gas, chemicals, gaming...etc. With a diversified portfolio, you won't get such a big hit from a single events. At any given time, one industry gains partially offsets from another industry losses. It's more stable. Doubling down on any single particular industry (say putting most in tech) increases the risk. Even a single bad news could have a major impact on portfolio.

@Anxious, if you're not comfortable holding a large amount of glove stocks, you can wait for opportunities for prices to rebound and sell off a small portion. Hold whatever you think is best for your long-term portfolio. With other sectors rebounding, not hard to find other good counters to invest.

Forget about the past losses, instead think of the potential gain from other counters.

If you're already hold Harta for the past three quarters, you already have more than 60sen of dividend. A small consolation prize.

@CharlesT we still don't know if China is the game changer.

For two decades we keep hearing about China being the game changer for many industries. For some yes, but not so for others (hello semiconductor). The current price reflects this uncertainty.

If you believe China will stomp our glove producers, should have walk off on August 2021. No need wait till now.

Some people like me are still holding, believing this is scare overblown.

In the next few years we shall see how our company respond to new competitors. Prices will adjust accordingly.

@observatory our good friend here is troll, best to ignore him/her.

@Mini2021 while China and Malaysia may be serving different markets, we don't want to underestimate them. Moreover IF their product do become cheaper and better, we may have to soon directly compete with them. Our producers can't rest on their laurels.

@observatory is right, the biggest unknown here into the near future is increased competition. While it is easy to dismiss competitive threat from China, we still don't know its effect on profit margin. I am still set on buying Harta at the dip, but in the near future if Malaysian glove producers can't keep up with producers from abroad or gets stomped in terms of cost, then I may reduce my holdings accordingly.

Still too early to tell at the moment.

@observatory I thought it was a typo that only 1 in 6 Malaysian wage earners pay tax, then I checked it wasn't. That was depressing. Any reform towards increasing the tax base would be shot down. In that case, the GST consumption tax (with suitable exemption) would be a step in the right direction even if the tax is highly regressive and unpopular, it's an indirect way of expanding the tax base and sharing the tax burden.

Any reform toward the burgeoning civil servant pay and pension won't happen anytime soon. It represents a very important voting base. Even a strong ambitious leader would not touch that with a ten foot pole. Just have wait until it explode in their faces before you see any meaningful reform.

Yes I agree that while glove companies should not complain, it sets a bad precedent for investor's confidence. It is easy to say that it is a one-time tax, but what is stopping the government from imposing another one-time corporate tax in the near future? (Malaysia's corporate tax is already quite high, but that's a separate issue.)

I may be a minority here, but I am partial towards resuming the previous government's GST. Sure nobody like to pay extra tax, but to me a "fairer" kind of tax. One can always tailor the tax to exempt necessity goods (i.e. food) to ease tax burden on the poor. But I don't see that coming back anytime (if so it would be in a different name).

Anyway if poor sales was to be blamed on shipping disruption for this QR lower-than-expectation, we may see sales recover somewhat in the next QR when they resolved this issue. Still don't expect profit to be higher because of falling ASP.

@jolynce. Yeah I get what you mean.
I don't want to stray into politics, but if the incumbent government underperforms, I will vote for the opposition, just to punish them. It's very childish, but they don't get a free pass for the screw-ups in 2021. Usually I am very apathetic towards the GE, because in this country my vote won't matter. But this time, I just to make a statement.

The timing of the tax is impeccable, right when they make the most profit. Coincidence? They say it affects all profitable companies, sure buddy, sure....

Can't wait for the next GE to get them out.

Thanks for clearing it up @observatory.

thanks for sharing @observatory. I was surprised with the 52% utilisation rate. Wasn't the EMCO supposed to affect previous quarter? If I remember correctly it was around July 2021 when that happened. How does that affect 4th quarter result that occur months later?

Not sure if I understand this correctly, wasn't the one-time prosperity tax was supposed to be a tax on 2022 profit? Wouldn't we get a smaller profit instead of a RM250m to 300m?

Also was the lack of sales primarily due to shipping disruption, as in they can't get enough ships to put their goods? or they were not able to sell because the lack of clients?

Also I don't understand why short-term investors wants to play in glove counters. Sentiments on gloves are still poor and there is no guarantee of a price surge anytime soon. Right now many other industries are recovering, from risky tech and commodities counters to slow and steady bank counters. Prices of many tech counters are high but may continue to rise...until Bursa kaki rotates to another counters. You can earn a lot more from those goreng counters, but if you time it wrong, you kena bakar lah, just like gloves in late 2020.

@gghaha Depends on your goal. I could be wrong, but based on current trajectory, prices may not improve by much and may continue to somewhat on ex-dividend date. If you plan to hold on for short-term gain, there are better counters out there. So sell and move on.

However if you plan on holding it for much longer (treat it like a fixed deposit) take the opportunity to buy during the dip. I am looking forward to buy on ex-dividend date because price are expected to be low (maybe). In the long run, I don't need to worry about price fluctuation as long as there is healthy demand for gloves and the company's fundamentals are intact.

Your call. I could be very wrong about how prices changes in the next two weeks, so take anonymous advise with the grain of salt.

A word of caution. Even if ASP is expected to stabilised by second quarter of 2022 (or earlier, who knows), expect the next two reports of declining profits followed by stabilised profit in the third quarter's report. Common sense, you need one additional quarterly report to confirm that prices stabilised. So for the next THREE quarters expect volatile share price. So trade carefully.

These monkeys now promote other counters now. Counters like Dnex (before that Genetec) people like to goreng. Not to say can't make money. If you time your tradings right, you can make money from any counters, even Harta. Unfortunately most people don't get the timing right, then they lose money when sentiment suddenly reverses, and they then flock to the next counters. These are the same people that chases glove stocks in 2020 and kena bakar when sentiments suddenly turned for the worst.

Most people buying this sort of counters are not chasing after short term gain. They are here to pick companies with strong fundamentals for cheap and can afford to hold for several years. You can see those large buying transactions, most likely large institutions happily lapping it up.

@Unfair. Ignore the trolls. These monkeys come out when glove price takes a dip. Hati busuk.

Based on recent QR, Kossan performance follows very closely with Harta. So whenever Harta's performance takes a dip, Kossan performance will very likely take a dip too.

Maybe Lim is buying Kossan, or maybe foreign funds stepping in. Harta used to buyback shares months ago but they stopped. Why? I don't know.

Force labour should not be an issue for Kossan and Harta. Forced labour no longer an issue for Topglove also. I think some people think Harta's performance was below expectation, hence the selloff. Hopefully Kossan has a better QR. Should know within a week or two at most.

Also I find it very amusing that whenever glove price drop, all these monyets come out with insults lah and give all sorts of buying advices. Buy this goreng that! Price rising so fast, why you no chase after it larr! Aiyoyo I not on the computer 365 days 24-7 chasing after goreng kaunter, I got job and other things to do, by the time the kaunter over-goreng and drop 80% I also no realise lah. I rather put money in well-managed trustworthy companies and let it slowly kembang in the freezer.

@calvntaneng it seems that we can agree to disagree on future events. You mention that ASP will further decline by 40%. Too steep and doesn't explain why all glove companies are expanding they capacity. I do not agree that there is a price war with China, and ASP remains elevated compared to pre-pandemic levels. The Rm3bil or RM5bil no matter how you see it, is a game changer considered that most glove companies are leveraged before the pandemic and are strapped for cash. One can do quite a lot with the money, like diversifying (i.e. cabuting) into other industries. On the other hand like you say they are continue to expand on gloves near the Thai border! Such a foolish long-term move if ASP is set to decline by 40% no?

This is why I keep holding on to my glove counters. I think they are undervalued. You may disagree and I may be wrong. Anyway I am not that foolish to go all 100% on glove, more like 25% with the rest in other sectors (banking, tech, consumer goods, gaming, even plantation lol). Even if all my glove counters goes hangus, I am not too worried, I made a wrong bet,... unless Bursa collapse. Then we are all screwed, no?

I am on the same boat with @jolynce. such result is not remarkable but is still within expectation since we have already seen the results for Topglov 2 months ago. If people sell, so be it, I am planning to accumulate below RM5.

I am also interested in next QR (including Topglov). If price does stablised by March 2022. The next QR should report smaller profit, but a smaller decline in profit from this QR.

@apple168 it's okay we all have different goals.