Posted by Chipee > 5 days ago | Report Abuse

Another share from Harta forum:

Aiyoh ... 50% of US order is secured without China kacau2.
The other 50% is price war and you think Msia cannot fight them? Glove is low margin, low tech product. China's cost base is no difference than Msia.
For comparison 2023 annual report: Cost of Revenue/Revenue
Harta = 86.77%
INTCO (China) = 86.30%
To me... this is not much difference.

Before COVID, China was not focus too much on gloves but after covid and their production increases, they want to muscle in by throwing price. Basically stealing Msia customers base. But remember this, OVERHEAD cost is a KILLER in this kind of VOLUME game products. That's why Topglove is still making losses. INTCO (China) is 79 bill annual capacity. Kossan and Harta stands at 35bill annually which is at the optimum production capacity to make money. INTCO will go into losses soon enough. AND without US market, China will lose even more.

Remember Evergrande? Why have they gone bankrupt? High debt. INTCO debt exploded from RMB280 mill to RMB7.17 bill. That is 25.6 times. When their production size cannot justify the sales they have, they will cut down production significantly and lose economy of scale. They have enough cash to cover their debt but they definitely cannot THROW PRICE to steal Msia customer base.

With US tariff, China is no longer a threat.

Posted by KimSua > 4 days ago | Report Abuse

Next Resistance level 2.51/2.52. Your call to be greedy or swing trade(some) . Still a longer term hold.

Posted by Chipee > 3 days ago | Report Abuse

KimSua ... Totally agree. Will hover around 2.5 until Q4 2024 result to decide. I expect better results.

Posted by ChandranG > 3 days ago | Report Abuse

Patiently invest in Kossan will win the race for sure

Posted by KimSua > 3 days ago | Report Abuse

Chipee, this time the risk of losing out is high if swing sell too soon. Might be a re rating soon for glove sector, which we see much earlier. But most likely take profit as the market will test the next resistance for at least twice , however looking at the bullish trend, might just only swing some profit. Trump will most likely increase taxes across the board for all imports and we have to scan the news especially the American glove manufacturers association. Good luck

Posted by Chipee > 3 days ago | Report Abuse

Thx for the heads up KimSua