Posted by LossAversion > 2021-05-19 14:29 | Report Abuse

With lower ASP, who do you think will be OUT of business first??????? Definitely NOT our top guns.

Posted by pjseow > 2021-07-08 20:03 | Report Abuse

Extract from.Supermx analyst.briefing .to BIMB .Please note that supermx ASPs are slightly higher than its peers due to its OBM.business model where 58 % of its gloves are sold Directly to the contractual customers instead of through middlemen or importers .

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Strong global demand but ASP trending downward
Moving forward, we believe ASP will see a gradual decline as glove urgency expected to fade due to increasing percentage of global vaccinations and rising competition from existing and newcomers’ capacity which will mostly be up in 2H21 onwards. Zooming in on Supermax, its ASP could be slightly higher than most of its peers due to its OBM business model and lesser cancellation of orders as most of its sales are to contractual direct customers rather than middlemen/ importers. Nonetheless, we hold the view that long term glove demand postCovid19 to remain stable due to increase hygiene awareness and structural changes in glove usage.

Earnings revision
We revised down our earnings forecast for FY21f/FY22f by 16%/22% after imputing lower utilisation rate and lower ASP assumptions. Lower utilisation rate of c.80-85% due to temporary plant closures and normalising demand and supply assumptions. Our blended ASP estimate for FY21f/22f now reduce to US$78/US$50 per 1k pcs of gloves