dalpinia freetospeak dalpinia UOB REPORT:

FY18: 21.8B pieces per yr

5% OEM, selling at USD80-95

40% OBM thru independent distributor, selling at USD80-160

45% OBM thru own distribution, selling at USD160-170

I count count count, PAT around RM2b per quarter, eps RM1.5 per quarter

Who can calculate based on the facts & figures given by OUB report?

Dalpnia...welcome to the billion-profit-handshaking club...lol..this club was founded bak in may when a group of sifu here found out that supermax profit could run into billion and hand is shaking when calculating. Of course that is in best case scenario and there are too many factors not considered. Since then we only emphasize on conservative projection so that we dun mislead ppl. So lets wait for result n hopeful for a very big profit bonus...lol..

Thanks.
08/07/2020 8:33 AM

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How you guys get 2b per quarter? Mind share your workings?

Major correction was last month.

yfhew1 Another 3days to go to hit my RM12.

Trust me by investing in 7106. You can gain some milk powder money.

Their profit is 428million max. 388million min. This the windows. After I calculate and post previously.
07/07/2020 6:01 PM

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RM12 enough meh?

Long awaited handle

buy when panic selling, sell when panic buying lah

HuatOngHengAh Honestly speaking it has up more than 40% since last Monday (29 June). There should be some healthy correction in place. You may go in if you are ready to go negative 40% from the current peak price (07 July). Very neutral opinion. My 2 cents.

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If you look back at Apr-May where share price rose 300%++, you won't be able to find any meaningful "correction" that you can buy into. Unless you have a crystal ball, you'll probably missed out significant upside if you waited for correction to buy. If you believe in the various target prices, just buy, hold and ride out any potential correction.

RM57b poured into these seven glove stocks since March
https://ceomorningbrief.theedgemalaysia.com/2020/0013/

KUALA LUMPUR (July 7): Investors have shoved a total of RM57.66 billion into seven glove counters listed on Bursa Malaysia since March 1 when the pandemic theme started in the local market.

The grand total is the aggregate of the daily turnover of each glove counter based on Bloomberg data.

Yesterday the turnover of the seven glove stocks alone accounted for 43%, or RM5.07 billion, of total turnover of local bourse — an evident of the craze for glove counters.

The seven glove manufacturers are Hartalega Holdings Bhd, Top Glove Corp Bhd, Kossan Rubber Industries Bhd, Supermax Corp Bhd, Careplus Group Bhd, Rubberex Corp (M) Bhd and Comfort Gloves Bhd.


From March 1 to July 6, the turnover of RM57.66 billion among the seven stocks represents some 19.04% of the RM300.4 billion turnover on Bursa.

In the period, the combined market capitalisation (cap) of the seven companies has more than tripled from RM44.43 billion on Feb 28 to RM140.22 billion — an addition of RM95.79 billion in a short span of slightly more than three months.

Both Hartalega and Top Glove have overtaken IHH Healthcare Bhd in terms of market cap. Hartalega is currently the fourth largest stock on Bursa with a market cap of RM55.9 billion. Top Glove's market cap is at RM53.77 billion, making it the sixth after Petronas Chemicals Group Bhd.

The glove mania gathers steam as investment analysts continue to raise target prices despite concerns that the valuations of these companies are not justifiable.

The combined turnover of the seven stocks has amounted to RM6 billion so far this month, which is equivalent to 36% of the total turnover of RM16.51 billion for the same period.

In fact, just the top four glove makers — Top Glove, Hartalega, Kossan Rubber and Supermax — saw a transaction value of around RM40.8 billion in the period, or 13.5% of all transactions across the local bourse.

Monthly turnover value for the seven glove counters jumped from 8% of the entire Bursa Malaysia in March to 23% in May, when the smaller players — Careplus, Rubberex and Comfort — started to play catch-up.

Based on yesterday's closing, the glove stocks were trading at trailing 12-month price-earnings ratio (PER) of between 51 times and over 100 times, the highest being Hartalega and Supermax at 128 times and 100 times respectively.

Nonetheless, investment analysts are of the view that historical valuation should be thrown out of the window as the world is in a new normal and rubber gloves will continue to be widely used even when the pandemic eases.

No 'sell' calls although target prices exceeded
Of the big four glove makers covered by analysts, none have any "sell" calls currently, although share prices have exceeded some of their target prices.


"We believe there are still legs to rally and it is only in midst of a rerating," said HLIB Research in its report dated July 6, anticipating the glove sector to deliver stronger results in the second half of the year.

"In the past, we saw formation of a new PER average whenever there is a pent-up demand cycle. Also, the sector has not seen peak quarterly earnings yet, which suggests there is still room for upside as per our study during the H1N1 episode(back then it took roughly five quarters to hit peak profit and there was strong correlation to share price performance).

"Besides, it is one of the rare sectors presently that have strong visible earnings growth, further justifying the premium. Moreover, there is potential of a Covid-19 second wave," the research house added.

UOB Kay Hian Research, which has maintained a "buy" call on Top Glove with a target price of RM21.90, described the company as providing "scarcity safe-haven earnings growth that is unrivalled across the other sectors".

The research house pointed to opportune capacity expansion for the company to capture additional windfall profits during this pandemic period.

"In the past, we saw formation of a new PER average whenever there is a pent-up demand cycle. Also, the sector has not seen peak quarterly earnings yet, which suggests there is still room for upside as per our study during the H1N1 episode(back then it took roughly five quarters to hit peak profit and there was strong correlation to share price performance).

Too chee gik

I think I will log off too today.

This week is team B right?

Team B or C or D coming out next week. Hold on tight

drobertp40 From a RSI point of view, comfort and carepls not yet reach overbought levels like harta, supermx and topglov. As such, I would be more careful of the big 3 stocks making a correction in immediate future.
03/07/2020 7:58 PM

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You should check the big 3 RSI over the past 6 months before you say this. Supermax was in overbought territory for 1 whole month before correction and within that one month it went up from below $2 to $9. Don't over rely on technical analysis for gloves.

Wow, didn't check prices for half a day and what a nice surprise.

Ntpboon ----------------
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Why cup maybe without handle ?

Speculators have been shaken out during last three weeks correction, they will only come back if price breaking new high again. They will help those tight holders to push up to even higher price. Let see........................

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03/07/2020 12:40 PM


Must have handle one. You see past few day and today's comments? Must shake. Wait for the other team to pop back next week.

Buy next week

speakup JUST NOW SEE WAS ONLY 9.02, THEN GO SEMBANG SEMBANG, THEN COME BACK SEE 9.20 FILLED! WTF!!!! FARK!!! FORGOT TO REMOVE THE SELL Q!
03/07/2020 12:09 PM

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Filled is good lah

Don't mess with macquarie

Today is peak of the cup or sudah jadi handle?

Let's see who remains on the boat after the next 5+ days.

I think close 8.9 today. Then break 9.30 tomorrow morning and trap more speakups => profit taking => handle comes out

Oh no i'm going to lose my chicken rice.....

Looks like I'm going to get free chicken rice? :o

Means juicy analyst reports may come out later part of next week.

Cup pattern almost fully formed. Handle maybe start appearing Monday?

CharlesT come come new bet in the town..

who will be the second to break new high after harta....

TG RM18.00- Rm0.86 to go
Kossan rm9.45- Rm0.53 to go
Supermax Rm9.30= RM0.81 to go

I bet Supermax will be the second to break new high...even though the gap is relatively bigger compare to 2 others

one chicken rice Rm10 max...

My faith n love in supermax is priceless

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Maybe Kossan. Laggard play now... Harta and Kossan have the lowest % increase so far so going to catch up. Supermax as long got increase ok lah!

jacklimeu2 Invest89 Can someone please explain how is it better to hold long term instead of selling now and buying back when it drops??
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what you are asking is the same question i have been asking, and NOBODY wants to answer....what's the figures if calculated on NEW NORMAL asp, assuming the new normal means full production, can sell 100%, add in all new factories, selling at market prices etc.....that's the REAL value of the shares after this is all over....

I can tell you this: it's not going to be like before 1.30.....neither is it going to be like now, 8....it's somewhere in between....
30/06/2020 5:39 PM

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This depends on a lot of factors including your own strengths. Technically, you COULD make more trading it vs holding mid-long term. But you could also make less. It depends on:

1. How good are you at trading? Are you always able to buy at lowest and sell at highest?
2. Do you have time (full time) to do trading? If you have a day job and other things to handle during trading hours, then most likely your answer for #1 is no.
3. During Supermax's uptrend in April/May with multiple 10-20% spikes, there was minimal pullback. So if you sold and hoping to buy back when it dips, you could have missed the boat by over 10%.
4. Which stock are you trading? For Comfort it is possible as the swings are wide and there are often sharp pullbacks/corrections, but for the big 4 more difficult to trade especially during the sharp uptrend.

Also, if you factor in all the online platform crashes recently - even if you're good at trading, you may have been offline not by choice during the critical buy/sell time.

In the end, there is no clear answer as it depends on the person's strengths and also the stock. You should always play to your strengths (and don't criticize other people's strategy)

Once reach full cup RM9 profit taking, handle will emerge followed by breakout.

After going up 400-500% over past 3-4 months, 3 weeks correction is reasonable lah

Maxam Cup and handle formation?
29/06/2020 10:30 AM

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Haha, i have been saying this since 2 weeks ago. Yes, I think we'll see cup and handle again - same as March/April prior to upward boom

Last day sale

sunshine99 lets us list down those should crash, heng yuan, china glove flood market, and monitor if they buy in later on.

mf
coconut
zuliana
speedNpower
zeroxweng

it is ok to share your view here, even it is with lower price but with basis, but dont just come here and shout sell, spread fake news, etc etc. the world is much bigger than you think, people look you like a moron while you think you are very good.
29/06/2020 12:36 AM

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Don't waste your time. Just ignore them. They have multiple nicks - one nick to press down when they want to buy, another nick to promote when they are waiting to sell.

OhTheBee (otb) It’s time to go away for a while from gloves sector.
27/06/2020 5:49 PM

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Notice that while these naysayers are telling people to sell and "go away from gloves", they are the ones who are suddenly flocking to glove forums. Why? You guys should be smart enough to figure out the answer.

Oh man, I really can't wait for June to be over.

4 more days...

PelhamBlackFund 6 more months until the end of 2020.

As of date, Hartalega is still the largest.

Nobody will know if Topglove's new lines will incur hiccups in production or production overruns.

Hartalega is certain, Topglove is uncertain.

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Be careful of hitting Top Glove to promote your Hartalega. Top Glove is taikor. If you hit Top Glove, you hit all gloves.

5 more days to go

Cup and handle formation coming up.

Just hold. Will start moving after 30th June

Today is first of the 5 day average price for Top Glove CW expiring 30th June.

Today is first of the 5 day average price for Top Glove CW expiring 30th June.

Be patient. Wait for after 30th June. This week will be slow.

Slow growth this week forming the rest of the cup. Wait for next week after 30th for rocket.

Never played fantasy football before but if there was a fantasy timing for Supermax, here's mine: Slowly rise this week. Friday analyst report emerge boom. Start next week with profit taking then 30th onward the rest of the analyst reports coming out and boom boom boom upwards.

Anyone got the source for the Chinese glove manufacturer that's expanding big time?

Cup and handle lah

Jack Khan, got announcement already?

Today Team A got one representative only. Account created yesterday night. Whoever he really is, guess he missed the boat yesterday, today need to catch up while the rest of his team are busy selling.

Haha, ok for your sake I also delete my post

TG still got CW 30 Jun, but luckily not Macquarie CW