We have revised Supermax from Underweight to Neutral. We believe that the stock is oversold simply due to the fact that the drop in ASP in the foreseeable future will most likely not be as severe as predicted by most analysts. We do not discredit their analysis but we think that the selling pressure has exceeded the company's fundamental metrics. Our model proposes a short term drop to 2.5 and a medium term rise to RM4.5
Margma - global demand for gloves in 2021 was expected to remain at 420 billion pieces
15% demand growth in 2022 = 480Bil
Global demand 2022 480Bil MY production 2022 320Bil IntCo production 2022 130Bil
Glove shortage doesnt mean can maintain high ASP..2022 glove shortage 30Bil (just from MY/IntCo production) - even less than 2019 shortage 40Bil..havent include production from EU/Thai
With lower shortage in 2022 than 2019, only logical ASP return to pre-pandemic level
Prepandemic ASP = prepandemic profit = prepandemic price (65sen)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
ToneeFa
2,529 posts
Posted by ToneeFa > 2021-09-13 23:42 |
Post removed.Why?