Posted by KimSua > 2024-05-17 17:13 | Report Abuse

Pull back is very low volume and top glove is still heavily shorted from 0.65 to 0.89 within 3 days. (net short pos). I suspect this round is short it down (intra day) for big funds to accumulate. Accumulation phase. Kossan seems to be less impacted by this and stable. This low volume pullback is a good sign. Can decide to go back in. Kossan Qtrly should be above average. Good price now, done with Top Glove as too dodgy

Posted by Chipee > 2024-05-17 18:29 | Report Abuse

@KimSua ... May I know where you check the short data?

Posted by KimSua > 2024-05-17 21:32 | Report Abuse

https://www.bursamalaysia.com/market_information/market_statistic/securities

Posted by KimSua > 2024-05-17 21:34 | Report Abuse

I just use bursa site. Some might have better access but bursa is good enuf. Net short only show for 1 day and no trend. Hv to self plot

Posted by xiaoeh > 2024-05-17 22:43 | Report Abuse

good sharing KimSua and Chipee
appreciated

Posted by Chipee > 2024-05-18 01:51 | Report Abuse

THx u

KimSua

https://www.bursamalaysia.com/market_information/market_statistic/securities

Posted by KimSua > 2024-05-18 21:06 | Report Abuse

https://www.channelnewsasia.com/singapore/singapore-covid-19-cases-nearly-double-hospital-capacity-vaccination-4345961

Posted by KimSua > 2024-05-18 21:07 | Report Abuse

The flirt variant is hitting US as well.

Posted by Chipee > 2024-05-19 20:16 | Report Abuse

IT did not increase hospitalization though. Maybe the symptoms not so serious. I think the covid case is not so relevant for glove now. Just focus on China-US rivalry.

Posted by Genovese > 2024-05-19 20:26 | Report Abuse

QR report not yet out. Any date announced by management?

Posted by 5354_ > 2024-05-19 21:48 | Report Abuse

Health Ministry: Covid-19 cases up 14.8pc last week
https://www.malaymail.com/news/malaysia/2024/05/19/health-ministry-covid-19-cases-up-148pclast-week/135286

Posted by raizalmyinvests > 2024-05-19 22:00 | Report Abuse

I don't think the limit up momentum will continue.

Posted by stncws > 2024-05-19 22:31 | Report Abuse

https://www.chinapress.com.my/?p=3936851

Posted by Mini2021 > 2024-05-20 06:16 | Report Abuse

If limit up cant then slow up can?

Posted by mf > 2024-05-20 15:26 | Report Abuse

sell

Posted by ChandranG > 2024-05-20 18:03 | Report Abuse

Still holding it 😄 Money money home

Posted by Chipee > 2024-05-20 18:32 | Report Abuse

Oh... hospitalization rate increase. Something to look into.

stncws

https://www.chinapress.com.my/?p=3936851

Posted by KimSua > 2024-05-21 07:48 | Report Abuse

QTRLY should be out this week by Friday. Today might be possible due to wesak tmrow. Hope to see another round of interest.

Posted by Chipee > 2024-05-21 14:00 | Report Abuse

Harta saw an increase in revenue from previous quarter 27.5%. I hope Kossan can be the same. And increase in net profit too.

Posted by Chipee > 2024-05-21 14:00 | Report Abuse

Whoever release financial report first becomes the bell weather for the rest. 😁

Posted by Chipee > 2024-05-21 15:29 | Report Abuse

Harta financial reports higher ASP and higher demand/revenue. Their diminished profit is due to cost to ramp up NGC Sepang operation. Basically big operation moving from Bestari Jaya to Sepang. Hopefully Kossan has no such operation. Just in situ improvement to operations. And no more impairment losses.

Posted by KimSua > 2024-05-21 17:00 | Report Abuse

Support is still very strong . Strong closing candle for harta. Flag pole and pendant pattern forming. High chance to continue the upward momentum in the near term. Simlar pattern seen for Kossan . Hopefully Kossan qtrly will satisfy the market with qtq increase in revenue and profit.

Posted by limch > 2024-05-21 17:23 | Report Abuse

Follow Harta release QR same day? Harta weaker QR not much drop but Kossan better QR how about tomorrow?

Posted by Chipee > 2024-05-21 17:24 | Report Abuse

Qtr Report is out.... sigh ... a bit disappointing but profitable. Revenue up 14%.

Posted by Chipee > 2024-05-21 17:32 | Report Abuse

I usually look at comparison to previous quarter to see the immediate business situation. Comparing yoy quarter is more on seasonality.

From Report:
Comparison of Current Quarter (“1Q24”) with immediate Preceding Quarter (“4Q23”)
For 1Q24, the Group’s revenue was recorded at RM451.63 million as compared with 4Q23 of RM400.15
million, the increase mainly from Gloves and TRP divisions. Profit before taxation (PBT) was RM40.98 million
in 1Q24 compared with RM3.43 million in 4Q23 (inclusive of a one-off impairment loss of plant and machinery
amounted to RM35.38 million).

The Gloves division’s revenue increased by 15.19% to RM379.63 million in 1Q24 from RM329.58 million in
4Q23 due to higher quantity sold. PBT of RM26.57 million was recorded as compared with LBT of RM9.30
million in 4Q23 (inclusive of a one-off impairment loss of plant and machinery amounted to RM35.38 million).

The TRPs division’s revenue increased by 10.14% to RM48.95 million in 1Q24 as compared with RM44.44
million in 4Q23 due to higher delivery of products in 1Q24. PBT recorded at RM8.92 million in 1Q24 as
compared with RM9.99 million in 4Q23.

The Clean-Room division’s revenue was recorded at RM23.05 million in 1Q24 as compared with RM26.13
million in 4Q23 due to lower deliveries. PBT recorded at RM2.42 million in 1Q24 compared with RM2.84
million in 4Q23 was in tandem with the lower revenue.

Posted by BursaVulture > 2024-05-21 17:34 | Report Abuse

good qr means drop

Posted by Chipee > 2024-05-21 17:46 | Report Abuse

We see how market react on Thurs. Tmr is Wesak Day. Market close.

Posted by Albukhary > 2024-05-21 17:48 | Report Abuse

When glove company is making huge loss, their cash in bank is very important.
Cash = Margin of Safety
Investor feel safe when they know this glove company has few billion in account and this money can ensure the company walk out from the crisis.

However, after the crisis past, the huge amount of cash in hand will become a burden.
It will drag down you ROE.. As all their cash can only generate very low income (3-4%), while investor is paying high PE for your stock (20-30 PE), so they need the company to generate high ROI. But because the industry has excess capacity and company cannot expand further, company must think a way on how to use the money to generate more income.
Is either you start to acquired other company, venture into new business, Invest in quoted securities, or you issue special dividend to investor.
Otherwise, your ROI will be continue to drag by your huge cash pile.

Posted by Sweetchocalates > 2024-05-21 17:50 | Report Abuse

Wow good qr. there should be some goreng on thursday.

Posted by Chipee > 2024-05-21 17:51 | Report Abuse

I rather have low ROI and ROE than have less cash. ROI ROE are just math. Cash is cash.

Posted by Albukhary > 2024-05-21 17:54 | Report Abuse

One of the example is INTCO, you look at their company announcement for the past 2 years, basically you can see that the company is actively investing in other business, subscribe to all kind of private equity products, because they have too much of cash, and they need the cash to generate higher return for them.

Top Glove has no such problem, as Top Glove spend too much money to buy back its share.
Supermax also no such problem, as they have use the money to purchase Airplane and build factory in US.
Harta have similar problem, but I believe Harta will continue to expand their NGC 2.0, 3.0.
So far only Kossan have this problem, perhaps maybe Kossan can start to expand upstream, such as acquired LUXCHEM, or expand downstream, acquired some distribution channel at Europe or US.

Posted by Sweetchocalates > 2024-05-21 18:04 | Report Abuse

Bro.. in bursa no one cares about cash, revenue, inventory etc … it’s all about profit

Posted by Albukhary > 2024-05-21 18:11 | Report Abuse

Yup, agreed that Profit is the King. That why I try to highlight that Kossan huge cash pile has become a burden, as this cash pile unable to help Kossan generate more profit.
Kossan need more profit to sustain its current share price.
Currently its EPS for Q1 2024 only 1.2sen.
It need more profit (i.e. 100mil per quarter) to justify its current share price.

Posted by Chipee > 2024-05-21 21:25 | Report Abuse

Remember in 2022. Kossan falls lowest to Rm0.98 while holding cash per share of Rm0.95. THat's 96.9% cash.
Meaning Rm0.03 constitutes the rest of the assets = plants, equipment, lands, business network, corporate structure etc. Dirt cheap.

And why prices can fall so low? Because Profit is King mentality. Traders look at price action and sell. To me that's gambling and totally ignore the fundamentals.

And why price can go up so high now? These upward trends:
> Demand gets higher. Revenue and profit get higher. (Proven)
> US-China rivalry. (Proven)
> Cost of production via automation and they have the cash to do it. Net profit higher (in progress)

I also forsee this regulative situation. Carbon credit. Kossan needs the cash to reduce their carbon footprint by investing in solar panels etc. Using natural gas instead of LPG. Government may require corporations especially public listed companies to buy carbon credit. I see Kossan has been doing that well.

I'm riding the long term trend. You can day trade but sometimes you can miss the boat. To each is own.

Posted by Epseps > 2024-05-22 00:25 | Report Abuse

@chipee well said. Just want to know Thurs mkt open price will up ?? Lol

Posted by bizzybone > 2024-05-22 02:40 | Report Abuse

No one uses ROE for the glove sector. Banks yes. Must know where and when to apply such metrics.

How can cash be a burden? With that cash pile, Co valuation is cheap.

It has lots of options: can do M&A, can pay out special div, can expand, can spend on more automation/optimisation, can earn more interest income. Co has more potential with such a huge cash pile. Its called a warchest for a reason.

Business has pretty much recovered. With the upswing in earnings, the growth part of the equation returns. Oh but earnings not good enough. Really? 1Q24 is 33% of Maybank's estimates (that's a beat). Kossan just needs to continue beating estimates and sellside will continue upgrading.

Posted by KimSua > 2024-05-22 04:58 | Report Abuse

With the rate on how well KOSSAN managed it's operating expenses vs Harta(ops expenses more than revenue due to decommissioning old to new plants), I won't be surprised KOSSAN market cap to surpass Harta by year end. Good luck, better reposition your glove portfolio

Posted by Lukey_Greek > 2024-05-22 22:00 | Report Abuse

too much cash with low profit = a slack management. basic finance knowledge.

Posted by Lukey_Greek > 2024-05-22 22:06 | Report Abuse

the current quarter financial result of Harta & Kossan show compression of profit still persist. Higher revenue with a same/ lower profit.

Posted by Chipee > 2024-05-23 02:04 | Report Abuse

I'll tell you on Thursday. 😂😂😂

Epseps

@chipee well said. Just want to know Thurs mkt open price will up ?? Lol

Posted by mf > 2024-05-23 05:27 | Report Abuse

Dow Jones

Dow Jones Industrial Average

39,671.04

-201.95

0.50%

Nasdaq

NASDAQ Composite

16,801.54

-31.08

0.18%

Posted by KimSua > 2024-05-23 07:49 | Report Abuse

Buy lah sell later

Posted by ChandranG > 2024-05-23 16:27 | Report Abuse

Kenanga remains a glove short seller 😅

https://klse.i3investor.com/web/pricetarget/research/71369

Posted by mf > 2024-05-24 05:15 | Report Abuse

Dow Jones

Dow Jones Industrial Average

39,065.26

-605.78

1.52%

Nasdaq

NASDAQ Composite

16,736.03

-65.51

0.38%

Posted by ChandranG > 2024-05-24 19:25 | Report Abuse

The management expects its technical rubber products division — which makes custom products ranging from dock fenders to gaskets and from insulators to industrial rollers — to be supported by a gradual increase in global economic activity and infrastructure investment

Posted by Chipee > 2024-05-24 22:20 | Report Abuse

Market sentiment bad ... see how long this last. Dow Jones and S&P will dictate that.

Posted by Mini2021 > 2024-05-25 07:43 | Report Abuse

THE ONLY AI GLOVE FACTORY:
Supermax’s US factory nears completion

08 Dec 2023

Supermax Corp Bhd announced that its first glove manufacturing facility in the US is nearing completion, with the group having fulfilled and complied with various regulatory requirements, including permits, to operate the plant in Brazoria County, Texas.

“Supermax’s American and Malaysian teams have been working very hard to manage the setting-up of the US operations and we are pleased to announce that construction of our first manufacturing facility will be substantially completed before the end of December 2023. The next stage will involve the installation of various manufacturing equipment including AI, automation and robotics facilities,” said Supermax executive chairman Datuk Seri Stanley Thai in a statement that was issued following the group’s annual general meeting on Friday.

“A technical team from Supermax Malaysia will be deployed to the US facility in various stages for commissioning of the manufacturing facility,” Thai added.

According to the group, it is the first Malaysian company to set up a glove plant in the US, the biggest glove consuming market in the world.

The group, however, did not indicate when the plant, in which it planned an investment of US$350 million (RM1.6 billion), is expected to start production. It had originally targeted that to be in the fourth quarter of 2022, which was then pushed back to the second quarter of this year.

Meanwhile, Thai shared with shareholders at the AGM that the group is expected to continue to face challenges for the next five to six quarters, with improvements only expected in 2025.

Last month, Supermax reported a net loss of RM2.05 million for its first quarter ended Sept 30, 2023 (1QFY2024), compared to a net profit of RM5.71 million in 1QFY2023, as revenue shrunk to RM177.96 million from RM247.96 million amid weaker demand, while selling prices remained lower.

It is the group’s fourth straight loss-making quarter since 4QFY2023. Still, the group has been progressively narrowing its losses each quarter. It logged a net loss of RM108.07 million in 2QFY2023, RM39.91 million in 3QFY2023 and RM7.17 million in 4QFY2023.

In its results filing, Supermax attributed the losses it incurred to continued weak demand as buyers were still going through their heavily over-stocked positions post-pandemic, while it had to face a loss of revenue from a major market, the US, due to the Withhold Release Order imposed by the US Customs and Border Protection in October 2021, which was only lifted on Sept 18 this year.

Shares in Supermax settled unchanged at 90 sen on Friday, giving the group a market capitalisation of RM2.44 billion. The stock has climbed five sen or 5.88% since the start of this year.

Source: The Edge Malaysia

Posted by Mini2021 > 2024-05-25 07:45 | Report Abuse

Supermx:

"The next stage will involve the installation of various manufacturing equipment including artificial intelligence (AI) automation and robotics facilities.

"A technical team from Supermax Malaysia will be deployed to the US facility in various stages for commissioning of the manufacturing facility.

Posted by Chipee > 2024-05-25 08:44 | Report Abuse

Supermax is wasting money for low margin products.

Posted by Chipee > 2024-05-27 16:15 | Report Abuse

Analyze Kossan Q1 result. Profit could had been higher if it wasn't bcoz of TAX month. They paid a big chunk in tax. Hopefully Q2 would be better.