SaveMsiaFromPHGov only know how to ask ppl to fukk themselves because he also fck already in topg. All stuck now hehehe

Coming quarter can make how much?? More than RM1bn also happy liao

=MARKET BUZZ: Malaysia's Glove Stocks Rally; CLSA Sees More Upside Potential
Malaysian rubber glove stocks continue to rally, with largest maker Top Glove Corporation rising 9.4% to MYR8.49; Hartalega Holdings climbs 5.5% to MYR13.12 while Kossan Rubber Industries 3% higher at MYR11.00. CLSA says there is still upside potential for glove stocks from current share prices and keeps Overweight rating on the sector. Notes, “with market expectations of supernormal profits increasingly being priced-in, it is necessary to value the sector from the perspective of long-term strategic investors where we still see significant value being derived on a medium-term horizon.” Following post-earnings revision and valuation methodology changes, CLSA lifts Top Glove’s target price to MYR10.00 but lowers target for Hartalega to MYR20 and Kossan Rubber to MYR16.10.

They throw I collect its OK. Gogogo. Wait for share bb announcement

CLSA say even post Covid will see strong demand with higher TPs!!! If topg can raise prices supermax even more with their obm!! Both short term and long term also got value. Only stupid people will sell now

End-users will likely be conditioned-to higher ASPs in two years
>A major conundrum amongst investors is on where ASPs will land post-demand normalisation which we expect to be in mid-2022.
>We take the view price stickiness will lead to longer-term nitrile ASPs of c.US$30/1,000pcs, and latex ASPs to average at US$22/1,000 pcs. This translates to a 35%/15% higher sustainable increase versus pre-Covid-19 levels.
>Inelastic glove demand coupled with a limited number of players controlling the lion’s share of global glove capacity are prime factors for higher sustainable ASPs. After 2-3 years of hyper-normal ASPs, end-users will have been conditioned for high ASPs, in our view, while there is limited incentive for manufacturers or distributors to lower the prices in quick succession due to inelastic demand.

Maintain BUY ratings post-earnings revisions and valuation methodology changes

Still can buy this one? Or just pump and dump

CGS-CIMB Equities Research reiterates its Overweight call on the glove sector as concerns of potential declines in average selling prices (ASPs) from CY21F onwards are premature at this juncture.

The research house said signs are showing that ASPs may stay elevated for a longer period (up to end-CY21F).

“Despite its bright prospects, the Malaysian glove sector is trading attractively at 16.7 times CY21F P/E, a 24.3% discount to its five-year mean P/E of 22.1 times.

“In our view, this has largely priced in concerns of a potential windfall tax and discovery of a Covid-19 vaccine, ” it said.

Commenting on the order visibility of glove makers, the research house expected it to be robust up to at least end-1HCY21F, a testament to the current strong global glove demand.

“In our view, the acute global shortage of gloves is likely to worsen as Covid-19 cases worldwide show no signs of slowing down.

“Note that many developed markets (with high glove usage per capita), such as the US and UK, have continued to record new highs in daily Covid-19 cases, ” it said.

CGS-CIMB Research expects the situation to worsen as more western countries head towards the wintering period in 4Q20, which could lead to further spikes in Covid-19 cases.

In term of ASPs, glove makers are expecting further hikes up to at least 1QCY21F. This is on the basis of the recent increase in raw material prices as well as the acute global shortage of gloves.

“Based on our estimates, glove ASPs could rise by 10%-45% quarter-on-quarter in 4QCY20F to US$50-US$100 per 1,000 pieces, which is above our current forecasts.

“However, we gather that certain glove buyers are willing to offer fixed ASPs (at a substantial premium to current ASPs) with a minimum one-year contract tenure to secure glove supply.

“In our view, this should provide certainties of ASPs for CY21F if glove makers agree to these contracts, ” it said.

On the potential windfall tax, glove makers and Malaysia Rubber Glove Manufacturer Association (MARGMA) indicate that there has been no engagement with the government on this matter.

CGS-CIMB Research said in its view, the implementation of a windfall tax on the glove sector would have long-term negative implication as this will drive glove makers to countries with more conducive environments (e.g. labour, tax incentives, utilities, etc).

Glove stocks have been sold down with the recent newsflow on Covid-19 vaccine development.

However, it thinks the eradication of the virus may take a while longer, given that: i) no Covid-19 vaccine candidates have passed Stage 3 and 4 of clinical trials, ii) current limited production capacity may hamper mass availability, and iii) potential mutations of the virus.

Also, it believes that glove demand is unlikely to taper off even with a vaccine, as glove use will in fact increase when masses rush to be vaccinated.

Gogogo chiong ahhhh. All the maybank cimb and clsa come out to fight macdee. More and more will upgrade their tp after Thurs results!!!

this is clearly an operated counter just based on the vol traded everyday. beware of such stocks in this market when operators take money off the table and funds start to lock in profit before year end.. some big caps blue chip stocks are even cheaper with better fundamentals now...

just a friendly reminder to others out there before you get trapped...