Maintain OVERWEIGHT. Rubber glove stocks under our coverage have gone through share price volatility over the past months on concerns that investors are looking at earnings beyond FY21. Based on our analysis presented in this report, we can conclude that: (i) ASP is going to be stubbornly high at least till mid 2021 which supports exponential QoQ earnings growth over the next few quarters, (ii) tight supply situation following nitrile raw material and glove formers shortage will lead to longer production lead time, and (iii) 2020 to 2022 estimated incoming capacity are indicating demand to continue outpacing supply. All in, we are excited with the sector prospects over the next few quarters due to supply tightness amid strong demand. Specifically, industry trend of rising weekly and monthly ASPs is expected to boost bottom-lines. Amplifying the growth are restocking and inventory-building activities creating a supernormal demand spurt leading to acute supply shortage, due to the prolonged pandemic.

We have OUTPERFORM calls on HARTA (OP; TP: RM26.22); KOSSAN (OP; TP: RM17.10) SUPERMX (OP; TP: RM12.75) and TOPGLOV (OP; TP: RM10.68). Our Top Pick for the sector is HARTA (OP; TP: RM26.22) since ASP catchup is expected to be reflected in 3Q 2020 onwards implying strong earnings growth.

KENANGA TP RM12.75!!

tan sri said on 8tv interview either end of this month or early next month will overtake PBB and maybank.

Next attention on SUpermax! gogogogogo

TP RM12.30 sorry

SECTOR COVERAGE
Company Rec
Top Glove BUY Kossan BUY Hartalega HOLD
Share Price 14 Sep 20 (RM) 8.58
11.10 13.00
Target Price (RM) 12.30
19.50 19.50


There is an NBR shortage in the market, limiting new entrants. Existing glove demand-
supply dynamics would facilitate higher NBR cost pass through. It would also prompt a
demand switch to latex gloves, which is likely to narrow its discount to nitrile glove
ASPs. Among the key beneficiaries is Top Glove. Maintain OVERWEIGHT on the sector
as we believe the risk-reward trade-off remains attractive. Top pick: Top Glove.
Source: UOB Kay Hian
Supermax is currently on UOB Kay Hian’s restricted list and therefore we refrain from publishing forward-looking assumptions and investment recommendation.

Maintain OVERWEIGHT. While the vaccine discovery has made good progress, we believe glove demand would remain firmly intact. Factoring in the upcoming step change in ASPs and higher spot-sales mix, we expect earnings to surge over the next three quarters to more than pacify concerns over lofty historical valuations. Meanwhile, 2021 earnings are supported by already sold out capacity. Our 2021 sector net profit is 81% above consensus estimates, leaving ample positive surprises. Furthermore, our normalised valuations based on 2022 projections suggest support to existing valuations. Hence, the risk-reward trade-off still appears attractive at this juncture.
 Our top sector pick is Top Glove for its increasing spot sales, above-industry expansion growth and high latex glove mix. We raise our FY20-22 net profit forecasts by 30%, 78% and 22% respectively to factor in higher latex glove ASPs and steeper ASP revisions. This translate into a 2-year CAGR of 450% (FY19-21F).

UOB TP RM12.53

last time was during MAy and share price skyrocket to new high

if you noticed, supermax director seldom acquire their own share and if they do everytime it is gonna be good and go up

yes pang is retarded lol.... go do some research please both supermax and topglove is GOOD

PLease guys topglove has 1:3 bonus issue of course lower than supermax... Good example is Maybank and public bank ! why maybank lower than public?
Supermax is still undervalue at this price

supermax and topglove for the win

https://koonyewyin.com/2020/09/13/supermax-has-the-best-profit-growth-rate/?fbclid=IwAR0tMohqdbPw3eVWwSyerny-dwNzZl-s1thmfqJkSMZw6q5BjC04i-S7Z6k

I believe the greatest fool is YOU

gap down 99

goodjob kossan

https://klse.i3investor.com/blogs/freetospeak/2020-08-21-story-h151242...

By CiA Team - SUPERMAX - OBM - X !!! REVALUATION IMMINENT !!!

https://klse.i3investor.com/blogs/freetospeak/2020-08-21-story-h151242...

By CiA Team - SUPERMAX - OBM - X !!! REVALUATION IMMINENT !!!

https://klse.i3investor.com/blogs/freetospeak/2020-08-21-story-h151242...

By CiA Team - SUPERMAX - OBM - X !!! REVALUATION IMMINENT !!!

https://klse.i3investor.com/blogs/freetospeak/2020-08-21-story-h151242...

By CiA Team - SUPERMAX - OBM - X !!! REVALUATION IMMINENT !!!

https://klse.i3investor.com/blogs/freetospeak/2020-08-21-story-h151242...

By CiA Team - SUPERMAX - OBM - X !!! REVALUATION IMMINENT !!!

https://klse.i3investor.com/blogs/freetospeak/2020-08-21-story-h151242...

By CiA Team - SUPERMAX - OBM - X !!! REVALUATION IMMINENT !!!

https://klse.i3investor.com/blogs/freetospeak/2020-08-21-story-h1512426349-SUPERMAX_OBM_X_REVALUATION_IMMINENT.jsp

By CiA Team - SUPERMAX - OBM - X !!! REVALUATION IMMINENT !!!

https://klse.i3investor.com/blogs/freetospeak/2020-08-21-story-h1512426349-SUPERMAX_OBM_X_REVALUATION_IMMINENT.jsp

go and like + support, very good work from the CiA

No 200 like no more future post. LIKEEEEEEE

i already invited him to my house to eat SOUR GRAPES dy... imported from japan

@Teamrocket come to my house I invite you to eat imported SOUR GRAPES

ppl is buying from sell Q

yes good sign for next monday

@sharmila yes it will be halved, but at the same time you get extra share. so the value of your holdings would not change.

Benefit? you earn double for what increases in share price after exdate

europe is doomed no social distancing at all, winter they will know

https://klse.i3investor.com/blogs/gloveharicut/2020-08-19-story-h1512423529-CIMB_More_some_than_fire_in_the_GLOVE.jsp

CIMB Supermax TP = RM 27

USD of course

thanks CiA for the support will share it out

https://klse.i3investor.com/blogs/supermax_analystbriefing/2020-08-11-...

- USD 180 ASP contribution for next Quarter earnings
- 23 billion gloves book order till next year
- lead time 10-12 months
- Rm892 Pre-payment collected from Q4 report
- Rm120 will move forward to Q1 next quarter :)

PAT easily Rm 700-900million

https://klse.i3investor.com/blogs/supermax_analystbriefing/2020-08-11-...

- USD 180 ASP contribution for next Quarter earnings
- 23 billion gloves book order till next year
- lead time 10-12 months
- Rm892 Pre-payment collected from Q4 report
- Rm120 will move forward to Q1 next quarter :)

PAT easily Rm 700-900million

https://klse.i3investor.com/blogs/freetospeak/2020-08-18-story-h1512394632-VACCINE_OR_WITHOUT_GLOVE_STOCK_RALLY.jsp

https://klse.i3investor.com/blogs/freetospeak/2020-08-18-story-h1512394632-VACCINE_OR_WITHOUT_GLOVE_STOCK_RALLY.jsp

https://klse.i3investor.com/blogs/freetospeak/2020-08-18-story-h1512394632-VACCINE_OR_WITHOUT_GLOVE_STOCK_RALLY.jsp

stupid people will sell now haha, if you are in the i3 group we know haha

https://www.torontotoday.net/2020/08/15/vladimir-putins-daughter-dies-after-second-dose-of-covid-vaccine/

Putin's daughter mati?????

https://www.bernama.com/en/general/news.php?id=1870747

Explaining the matter, he said, the D614G mutation was discovered by scientists in July 2020 and it is likely to result in the study on existing vaccine to be incomplete or ineffective against the mutation.

if KYY bought supermax yesterday means he's in loss in supermax lol hold tight tight ! next week will go back up rm24

//In fact, yesterday I took advantage of the depressed share prices to buy more Supermax and Top Glove.

KYY is on board

why worry ? hahahaha supermax will sapu too

Guys TOPGLOVE director sapu Topglove today during selldown haha

This post deserves to be TOP 1 trending post

take a chill pill guys :) we all know this vaccine is gonna create some funny news later on

eventually share price will go up

remember share price are always supported by current and future earnings :)

return to fundamental please

I've gone through every roller coaster ride and the end result will still be the same

@freetospeak and his CiA have done a great job for us to think

take a chill pill guys :) we all know this vaccine is gonna create some funny news later on

eventually share price will go up

remember share price are always supported by current and future earnings :)

return to fundamental please

I've gone through every roller coaster ride and the end result will still be the same

@freetospeak and his CiA have done a great job for us to think