Macquarie Equities Research (MQ Research) 22 Nov 2021.

==> Although average selling price uncertainty lingers, valuations have turned attractive with all three glove makers trading at EV/share below pre-pandemic levels.


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

JPM is a big crook. Pity all the retail investors who were hit by their unscrupulous acts.

Current share price of glove counters already factored in the tax issues. That's why share price not much changes today.

The main losers today are the high earners of other sectors - the bank, consumer products stocks.

@Will76, strange that you posted the neutral and downgrade calls by PublicInvest Research for Top glove and Kossan respectively but omitted the 'Outperform' call for Hartalega.

PublicInvest Research :
*** We downgrade our rating for Kossan to Neutral, while maintaining our Neutral call on Top Glove.

*** Our preferred exposure for the sector is Hartalega, due to its superior margins pre-Covid and we continue to rate it as Outperform.

Very well said, monetary.

monetary Walou. USA traders so naive ar? Knowing that adr is certificate based on Tg mother share. With 4 Tg shares qual to 1 certificate, exchange rate of 4.15 to myr1 basically both are traded at the same price (different currency). Tg mother share 4.7 got sorhead bought adr up to 7.5???

Straits Times index (.STI) closed down 2.2%. But Glove and PPE stocks remain strong - Riverstone, UG Healthcare and Medtecs all green.
=============================================
Reuters May 14, 2021
6:54 PM +08

Stocks fall as Singapore re-imposes COVID-19 curbs
Tom Westbrook,Chen Lin

Singapore announced on Friday its strictest curbs on gatherings and public activities since a coronavirus lockdown last year, amid a rise in locally acquired infections and with new clusters forming in recent weeks.

The measures, which will be in force from Sunday to mid-June, include limiting social gatherings to two people, a halt on dining in at restaurants and for employers to make working from home a default arrangement for staff.

Singapore's Straits Times index (.STI) closed down 2.2% on Friday, its sharpest daily fall in 11 months, with drops led by firms exposed to retail and travel. Singapore Airlines (SIAL.SI) fell 5.7%, the sharpest drop in a year.

https://www.reuters.com/world/asia-pacific/singapore-tightens-covid-19-curbs-social-gatherings-dining-2021-05-14/

US is a big bully. Yet there are so many dogs here thinking so highly of the CBP's action. Shame on you.

@Tkeng... Congrats to you too. Happy investing :)

Recovered all my lost in the IPO. Lucky :)

Fully agree with bro OnTime. The latest USP action is really deplorable. It is a very coordinated action to flex their shameless bullying muscle. Hope everyone stay UNITED !!!
********
@OnTime, I don't own TG but I'm standing up for this company! Unfortunately our government has offered zero help in this case. Wishing TG the best and keep up the just fight. TG should sue the US govt.

#Mabel, thank you for the very detailed and meaningful sharing. Certainly holding on to the value stock.

Strong support for the posts by Goldberg
******
Therefore, the Glove Movement in Malaysia is not about manipulating the market but a reactionary force.

WE, RETAILORS NEED TO STAND OUR GROUND AND FIGHT THE UNSCRUPULOUS SHORTIES.
******

Bro BloomBird, thank you for your effort. Time for retailers not to be bullied.
We stand UNITED and RALLY behind you.

Yes!!! Time for retailers to strongly UNITE together.

The New York Times :

US CDC Warns the New Virus Variant Could Fuel Huge Spikes in Covid Cases

https://www.nytimes.com/2021/01/15/health/covid-cdc-variant.html

A good piece of info to help in your investment. DYODD...

********************
Tradeview Commentaries - Unwavering Confidence In Glove Makers In Spite of Vaccine Newsflow
Author: tradeview | Date: 18 Nov 2020

The market sentiment over the week was a mixture of anxiety and joy. Joy for those who believed in value stocks and blue chips, whereby it surged tremendously. Anxiety however, are for investors of glove, PPE and related stocks which reacted adversely due to the news of Pfizer vaccine.

On a positive note, following US elections and Pfizer vaccine news, foreign funds have been flowing back to Malaysia for 3 consecutive days and even exceeded 20% overall market participation level.

In the coming weeks, there will be more vaccine news. It will likely be Moderna and Astra Zeneca to follow. Potentially, China vaccines will also come through with their phase 3 safety data.

In this case, it will bode well for Value stocks (Banks, select blue chips) and Legitimate Vaccine related companies

How about glove, is it all over?

Through the year, I have done many site visits personally and met with management of key industry players, even spoke with established distributors. Whatever I have shared are not information pluck from the sky based on airy fairy hopes but on objective facts. I will update all my latest view post-Pfizer announcement.

1. Earnings visibility for gloves are still at least 12 month / 1 full year through 2021. (This is not a disputed fact even by the most bearish analyst for the sector. )

2. Vaccine or no vaccine, ASP and demand won' t fall off the cliff. (Again not disputed fact even by the most bearish analyst)

3. Mass vaccination will take time, and implementation for the world even longer. At the very least 1 year. (This is a fact stated by WHO & Dr. Fauci.)

4. Glove strong demand due to severe shortage will last through to 2022. New hygiene practice and structural step up, increased healthcare budget for governments around the world and stockpiling requirements contributes to this. (This is a fact)

5. Potential future oversupply concern. (Two camps arguing with 1 side arguing due to new entrants there will be oversupply but I don' t believe this as new entrants can' t compete with established players due to certification, safety standards, economies of scale and technical know how)

6. Eventual decline in mid 2022/2023 for ASP and demand (strongest argument for glove bears. My view - I can' t tell what happens in 18 / 24 months. No one can. As the time progresses, more visibility comes through. But I believe ASP will plateau later than sooner, definitely not this year)

7. Glove stocks are overvalued. These are noises by naysayers and bears. No matter which method I adopted, PER multiples against past year Standard Deviation, DCF or the most accurate EV/EBITDA (EV ratio), dividend yield forecast, gloves stocks are undervalued and a mile from being overvalued. This is a fact. If analysts are objective and fair in their assessment for all companies in Bursa using the same stringent assessment scrutinising glove stocks, there will be absolutely no companies that we can buy or invest anymore. Tech stocks are by far grossly overvalued, recovery stocks like airlines / tourism are taking into account future earnings which does not exist, local vaccine related stocks with MOU has no proof of ability to deliver as the best vaccines are taken up.

In a nutshell, I think some investors and select funds are overly conservative in valuing glove stocks. They are worried being caught as the last one holding the stocks choosing to forego 1 full years of record Profits and potential bumper dividend.

Use this opportunity to buy on weakness. When value emerges ignore the noises. I think Riverstone, Hartalega, Top Glove, Supermax, Sri Trang, Kossan are good fundamental companies worth a place in your portfolio regardless of the " overnight vaccine experts" who think otherwise.

Check the share price of pfizer in the US market. It only go up about 7%.