crude oil price up

crude oil price up

Upcoming US stimulus package 3 trillion should boost up recovery economic. Such massive printing US dollar will flush global market, causing weakness in dollar currency. These in turn will increase commodity price such as crude oil, petrochemical product price hike especially butadiene, a feed-stock for nitrite glove

Such massive printing US dollar will flush global market, causing weakness in dollar currency. These in turn will increase commodity price such as crude oil, gold, silver etc

Upcoming US stimulus package 3 trillion should boost up recovery economic

LCtitan main product, butadiene, is the key raw material to produce nitrite glove (synthetic latex glove)

https://www.lottechem.my/products/productGuide_view.asp

Add balance capital all to dayang at 1.05

add more LCtitan at 1.84

bought dayang at 1.04

bought back LCtitan at 1.83

sold back balance at 19.30-19.36

sold back partial supemax at 19.40-19.50

use margin line to increase supermax stake at 18.50-18.60

add more supermax at 19.04-19.06

sold back all bjcorp at 22.5sen, swap all to supermax

sold all bjland at 19.5sen, swap all to supermax

bought back all supermax at 18.74

NZ's largest supermarket chain pulls Top Glove products from shelves

Published 11:21 am
Modified 11:21 am

New Zealand's Foodstuffs supermarket chain has pulled Top Glove's disposable gloves off its shelves while it investigates whether they might have been made using forced labour conditions.....

https://www.malaysiakini.com/news/536537

sold off all supermax at 18.90-18.94

special dividend is coming

special dividend is coming

Based on supermax analyst presentation, its manufacture selling price was USD 23; supermax distribution cost was about USD30 before pandemic, in total, supermax derive net profit margin about 7.8% from its combine selling price USD53.

After pandemic occur, supermax manufacture selling price increase to USD 55 in April, USD 80 in May and USD 100 in June. Supermax distribution selling price increase to USD 45 in April, USD 55 in May and USD 60 in June.

These translate into combine increment from USD 53 prepandemic to 70% in April, 155% in May and 200% in June. These increment in average 142% for April- June, a massive sharp contrast to increment growth reported by about 30% -50% range in OEM.

Top glove even if courted for its plan ASP hike by another 30% in month Aug, only manage to hike ASP to 85% if compared to pre pandemic selling price level.

Don forget upcoming Q result for supermax is Q4, a final Q result always accompany with final dividend. Based on historical data, supermax will likely declare share dividend 1 for 20 since it have 5% treasury share now, declare share dividend first before bonus 1 for 1.

What is OEM?

Do you have a unique product design? Have you spent millions of dollars on research and development for that exceptional product, but you need a third-party company to assemble and make things happen for you? Then, you’d have to work with OEM companies on the manufacturing process. This means licensing them everything you’ve got on that blueprint and selling the finished products under your brand name. Top glove is OEM, received order to manufacture glove after granted right by under various oversea brand glove company, appoint top glove to manufacture glove on their behalf based on their specification. Top glove can be consider as upstream player in glove manufacture chain business.

What is OBM?

OBM (Original Brand Manufacturer) is a company that retails their own branded products that are either the entire products or component parts produced by a second company. They sell the goods under their own brand name in order to add value. The OBM will be responsible for everything including the production and development, supply chain, delivery and the marketing. Supermax is the only OBM in Malaysia. Supermax is consider full integrate from upstream manufacture to downstream distributor, marketing own glove brand globally. Currently, supermax healthcare, a wholly own subsidy of supermax, market 12 in house brands as show in its website.

http://aureliagloves.com/product/ignite/y

If you realize that glove profit is going to growth at least 1700% for OEM, and more higher 2000% for OBM forward, the current surge in price of 1000% is still behind profit growth rate now for supermax

As ASP hike only start in April, the coming Q result only is first EPS growth due to ASP from April-June. A further ASP hike impact will only able to record in next Q result. Therefore, glove stock EPS should be courted forward with increasing profit starting from these Q result onward.

If small glove maker, careplus with OEM can record more than 1700% profit growth in quarterly result, what will happen to supermax with much higher profit margin business model OBM + own distribution???

1000% increase profit will record RM 710m or EPS 52sen
2000% increase profit will record RM 1410m or EPS 104sen.

add more supermax at 17.36-1.740

cut myeg at 1.44, swap to supermax

bought back all supermax at 17.60-17.80

cut all at 9.73-9.74

add more bursa at 9.75-9.80

sold inari at 1.88

sold D&O at 82.5sen

sold Dsonic at 1.39-1.40

add all at 1.44

bought D&O at 80sen

bought bursa at 9.90

Add more at 1.34

add myeg at 1.45

bought Dsonic at 1.35

sold back all supoermax at 19-19.02

bought back all supermax at 17.70

bought inari at 1.74-1.75

sold back all supermax at 16.50

bought back all supermax at 16

sold back all topglove at 22.32-22.34

bought maximum topglove at 19.60

The Board of Directors of Top Glove wishes to confirm that the U.S. Customs and Border Protection (“CBP”) has placed a detention order on disposable gloves manufactured by two of the Company’s subsidiaries, namely Top Glove Sdn Bhd and TG Medical Sdn Bhd on 15 July 2020.

We are reaching out to the CBP through our office in U.S., customers and consultants, to understand the issue better and work towards a speedy resolution of the matter, within an estimated 2 weeks.

Remark: Labour issue is face by all glove maker as it is very labour intensive business. TG is leader, if leader have problem, all glove stock sentiment will affected

Labour issue is face by all glove maker as it is very labour intensive business. TG is leader, if leader have problem, all glove stock sentiment will affected