Highlights

GillianTan Reviews

Author: GillianTan78   |   Latest post: Thu, 14 Jan 2021, 1:34 PM

 

Evidence that prove JP Morgan's Jeffrey Ng analyst report on Glove is irresponsible and materially full with unreliable data

Author:   |    Publish date:


Note:

JP Morgan Jeffrey Ng's unreliable data and statement in blue (Jeffrey Ng, can you ask Jamie Dimon to ask Joe Biden and Kamala Harris why their doctor wore gloves when giving the vaccine? Oh yes, please ask your doctor that will give you the vaccine not to wear gloves too)

Truth in green highlight

 

Jeffrey Ng's poorly written report):

“With vaccinations now underway, we expect demand for gloves to continue to ease,” wrote JP Morgan in a research note dated Jan 11. 

This is in contrast to consensus expectation that the demand for disposable rubber gloves will not shrink sharply as frontliners still need them during vaccinations. 

Citing the Centers for Disease Control and Prevention of the US, the National Health Service of the UK and the British Columbia Centre for Disease Control of Canada, the American bank said medical officers are not required to wear gloves while carrying out vaccination.

“Gloves are needed only if the healthcare workers are likely to come into contact with body fluids or if there is an open wound. Guidelines also state that even after wearing gloves, constant sanitisation between each patient would be the best way to minimise the risk of disease transmission,” it wrote. - This is half baked data by Jeffrey. CDC's guidelines were updated temporarily due to PPE shortages in US. CDC said that conventional practices to return to normal once PPE supplies and availability return to normal (https://www.cdc.gov/coronavirus/2019-ncov/hcp/ppe-strategy/gloves.html). Jeffrey Ng either blatantly did not state this fact or he is not competent (did not do his homework properly before writing). Either way, he is either i. unethical or ii. incompetent.

Furthermore, JP Morgan stressed that glove prices may have peaked as testing efforts have started to plateau in most countries, especially developed ones. The bank pointed out that the current unprecedentedly strong demand was due mainly to high testing activities globally, particularly in the developed countries.  - This is one of the stupidest statement one can write. Jeffrey Ng is saying that "testing has plateau in most countries, especially developed ones".

Fact: 

i. US reporting record breaking cases day by day

ii. UK reporting record breaking cases day by day

iii. Brazil reporting record breaking cases day by day

iv. Germany reporting record breaking cases day by day

v. Russia curve is close to all time high

Simple question that even a stupid person can answer: If testing has plateau, how does one report record breaking cases day by day? No need to test to verify positive case? 

Which is why Jeffrey Ng is the stupidest person on earth (Even a 5 year old know the answer to the simple question but Jeffrey Ng doesn't understand that record breaking cases can be achieved when testing has plateau)

“Malaysian glove producers’ aggregate market capitalisation is 86% correlated to the US daily new testing data. The high 90% correlation was due to higher hospitalisation rate, driven by more testing, which in turn leads to higher demand for medical supplies and glove,” the bank commented. -Thank you Jeffrey Ng, because you are saying that more testing means higher demand for gloves. Even though your mind is small, at least you can see the correlation between more testing and more gloves. Unfortunately Jeffrey Ng is too stupid to see the correlation between more cases and more testing.

The anticipated slower demand, JP Morgan said, implies limited upside to the average selling prices of the rubber glove. -Pretty sure Jeffrey Ng was not invited to the latest briefing. ASP expected to rise until 1H22. Writing without facts can be done by any tom dick and harry. Everyone know the fact is ASP will rise until 1H22, not 1H21.

In an earlier research note dated Jan 6, JP Morgan said it expects glove prices to reach a peak by the first half of 2021, with prices and profits to normalise thereafter.

The bank had compiled data of 18 countries, representing 17% of the world population, and found that besides India, Canada, Russia and the UK, the remaining countries it tracked are seeing a slow down in testing. -No US? US recording record high cases everyday. 17% of world population? Meaning did not include US? Why purposely omit US in data set to make your report look nice? Think people are stupid like you?

This limits the upside to glove prices, said JP Morgan, as “the more one tests, the more cases will be discovered which leads to hospitalisation and the need for medical supplies and gloves... Surges in testing created shortages which changed glove pricing from negotiated basis to spot”. -Again... US recording record high cases everyday. So no US in data set? Stupid or what?

At the time, the average selling price stood at US$140 versus US$22 pre-Covid-19, which the bank said was driven by unsystematic buying. -What does unsystematic buying mean? So what is systematic buying? Are you stupid? Covid is a pandemic, demand overshoot supply, price go up. Jeffrey Ng, you are so stupid to make this statement "unsystematic buying". 

So unsystematic buying means JP Morgan CEO Jamie Dimon said he will fire any employee that buy Bitcoin but JP Morgan buy Bitcoin and cause the price to rise to much? 

So, why Bitcoin's price not falling back to US$3.5k now? Because its unsystematic buying?

Seriously, what the fuck is unsystematic buying, Jeffrey?

Secured revenue growth is unsecured - What the fuck does this statement even mean?

Investors argue that the revenue growth is secured as most glove producers claim to have two or more years of order backlog, but JP Morgan begs to differ. 

"It is crucial to understand order backlog and secured revenue. Orders are merely an agreement to buy a certain volume with prices determined or undecided. Buyers can walk away from it,” it wrote, noting that secured revenue is when customers have paid fully or partially for future delivery. - Again, Jeffrey Ng must have not been invited to any glove company's business updates, thus being left behind in his own world. 

Jeffrey Ng says: "Orders are merely an agreement to buy a certain volume with prices determined or undecided" 

Question to Jeffrey: So the prices is determind or undecided? What the fuck are you saying Jeffrey? Is prices decided or not decided? Can you answer this simple question?

Jeffrey Ng says: "Buyers can walk away from it"

Question to Jeffrey: So what if buyers walk away from it? The buyers are queueing up until 560 days (2 years). If a buyer walk away, then next buyer, please. Is this so difficult to understand?

Jeffrey Ng says: "Secured revenue is when customers have paid fully or partially for future delivery"

Question to Jeffrey: Who the fuck are you to determine what does "secured revenue" mean? Are you an English teacher? Come up with own terminology of "secured revenue" and say the definition is not met by glove companies? 

Why didn't you mention customers have committed to buy at higher ASP until 1H22? Ohh... because you were not invited to listen to the facts and simply state your own "terminlogy" pluck from the sky.

"As shown in Top Glove's quarterly results, we have indeed seen a sharp spike in deposits collected, from RM60 million a year ago to the latest quarter’s RM1 billion.

"However, the deposit paid is merely 4.7% of projected revenue for the financial year ending Aug 31, 2021 (FY21). It is not even equal to a month’s worth of glove sales," said JP Morgan. - This is the part where every person on the street start to suspect Jeffrey Ng's competency. He clearly does not know how "systematic" spot orders work

1. Deposit is only for SPOT Order. How the fuck can you compare 1bil SPOT order sales with 2021 full year sales that have both Spot and non spot order? Why so stupidddd?

2. 1Bil deposit is only for the next month. Fact: Do Jeffrey Ng know what "SPOT" order mean? Since he is English teacher wannabe, he should know what the word "SPOT" means

3. Deposit is collected month on month. He assume 1bil is for full year 2021. Fact: It should be minimum 12bil for full year 2021. 

4. The deposit does not roll over. Once the next month come, the 1bil is wiped out as contract liabilities in balance sheet

JP Morgan maintained “underweight” calls on Top Glove Corp Bhd with target price (TP) at RM3.50, Hartalega Holdings Bhd (TP: RM8.50) and Kossan Rubber Industries Bhd (TP: RM3.80).

However, it cautions that the risks to the calls on the three glove producers include a second global wave of Covid-19 which could lift glove prices to new heights, unscheduled capacity shutdowns, a significant fall in input costs such as nitrile and natural rubber, a significant step-up in dividend payouts as well as a substantial degree of ringgit depreciation. - Stupid Jeffrey, all your risk already happening:

- Second global wave (US already in unlimited wave, UK already in unlimited wave, Israel (despite vaccinated so many people) still in unlimited wave

- Unscheduled capacity shut down (Topglove shut down their plant for few weeks, ain't it?)

- Significant fall in input costs (Gas prices went down, why only mention nitrile and NR?)

- Significant step up in dividend payouts (Topglove already said increase divdend to 70%?)

- Substantial degree of ringgit depreciation (since 1st day of 2021, USD slowly creeping up against MYR, no?)

At noon break, Top Glove fell five sen to RM6.63, giving a market capitalisation of RM54.54 billion. Hartalega dropped 12 sen to RM13.02, with a market capitalisation of RM44.76 billion. Kossan fell five sen to RM4.51, with a market capitalisation of RM11.51 billion.

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Labels: TOPGLOV, HARTA, KOSSAN

Related Stocks

Chart Stock Name Last Change Volume 
TOPGLOV 6.42 +0.05 (0.78%) 22,780,200 
HARTA 12.20 -0.10 (0.81%) 6,138,000 
KOSSAN 4.22 -0.04 (0.94%) 18,857,300 

  21 people like this.
 
VenFx I do agree with some over illogically so call target given from JPMorgan too... on d other way up bought topglove.

Apparently no need to explain lah !
14/01/2021 12:19 PM
VenFx Usually an sector professional wont saidthat way loh!
Glove will not be necessarily during vaccine injection ?


Haha! What a ....it is not professionally.
Dam bias with unclarified assumption.
Jp need to save their own arse
14/01/2021 12:28 PM
gladiator We do need Jeffrey Ng type of analysis if not how investors re-enter glove counter cheap?
14/01/2021 1:03 PM
GillianTan78 1% left of Topglove shares to be shorted by JP Morgan and their foreign associates. Don't let foreign investors fool you to sell

As expected, foreigners shorted huge amount of Topglove shares today (11% of total traded volume) after their associate JP Morgan wrote a unreliable and non factual analyst report on gloves yesterday.

There is only 1% left to short Topglove (4% cap set by Bursa).

Their current shorted average price is RM5.9 for Topglove.

If the price can sustain above RM5.9 before the 4% cap is reached, all short sellers will officially lose money and forced to buy back at higher price

Note that most of the short sellers are foreign investors (scums), and

JP Morgan's clients are mostly foreign investors (scums)

Their report is written with ill intention by stating all the negative and fake news instead of facts from management and reality of covid situation. Shame on Jeffrey Ng and YY Cheah
14/01/2021 1:37 PM
GillianTan78 Jeffrey Ng and YY Cheah are both human waste material that should be sent to Mars by Elon Musk.

JP Morgan also said Tesla is worth $80 and shorted since $400 and losing almost $1bil on Tesla shorts now
14/01/2021 1:37 PM
Keyman188 Keyman188 not professional or expertise....


Keyman188 always spend more time listen to Professionals & Expertise to avoid burning Keyman188 hard earned money....


Keyman188 very scared to become warrior or hero...


Keyman188 no harm better listen more to Professionals & Expertise to avoid become shark & crocodile victim...


Keyman188 not the professional or expertise...Let the expertise give more advise to the market...

为什么想投资科技股就必须关注美国大选最终结果?马股橱窗粉饰之后会有调整吗? - 陈剑

##https://klse.i3investor.com/blogs/kianweiaritcles/2020-12-26-story-h1538398268.jsp


业绩这么好为何股价涨不动?近期手套股业绩和股价走势背离最完整讲解!- 陈剑
## https://klse.i3investor.com/blogs/kianweiaritcles/2020-11-20-story-h1536526427.jsp


新冠疫苗面世后,股市里的聪明钱会去哪里?对手套板块有多大影响?- 陈剑
## https://klse.i3investor.com/blogs/kianweiaritcles/2020-11-14-story-h1536429185.jsp

-----------------------------------------------------------------------------------------------------------------------


That's reason why some investment banks (IB) had started to revise glove sector outlook.........



Hereby to enclose the latest glove preview & outlook by IB...


Macquarie downgrades Top Glove to 'underperform', halves target price as earnings could normalise in 2H21

(theedgemarkets.com / September 10, 2020 17:36 pm +08)

##https://www.theedgemarkets.com/article/macquarie-downgrades-top-glove-underperform-halves-target-price-earnings-could-normalise




JP Morgan pegs these glove makers' fair value at up to half their market price, says supernormal cycle is over

(theedgemarkets.com / December 12, 2020 00:16 am +08)

##https://www.theedgemarkets.com/article/jp-morgan-pegs-these-glove-makers-fair-value-half-their-market-price-says-supernormal-cycle




PublicInvest Research downgrades Top Glove to 'neutral' on ESG concerns

(theedgemarkets.com / December 18, 2020 10:38 am +08)

##https://www.theedgemarkets.com/article/publicinvest-research-downgrades-top-glove-neutral-esg-concerns




AmBank Research sees 'limited upside' to glovemakers at current prices, cuts target PER by 10%

(theedgemarkets.com / January 13, 2021 12:58 pm +08)

##https://www.theedgemarkets.com/article/ambank-research-sees-limited-upside-glovemakers-current-prices-cuts-target-10




Glove bear JP Morgan tells clients gloves ain’t needed during vaccinations

(theedgemarkets.com / January 13, 2021 13:22 pm +08)

##https://www.theedgemarkets.com/article/glove-bear-jp-morgan-tells-clients-gloves-aint-needed-during-vaccinations




Revision :-

Macquarie - TP : 5.45

JP Morgan - TP : 3.50

PB IB - TP : 7.30

AmInvest - TP : 6.50



-----------------------------------------------------------------------------------------------------------------------



Keyman188 comment is only for those need to heard & perceive...


Save your hard earned money to avoid fighting with Big Funds...


Sometime need to follow the "wind" where to come...where to blow....
14/01/2021 1:59 PM
roadtomillionaires someone should post this on linkedlin and tag him
14/01/2021 2:32 PM
Erik Ooi Karma
14/01/2021 3:59 PM
clarkent jeffrey ng has switched linked-in to private already lah
14/01/2021 4:19 PM
Bluey Thank you Gillian for pursuing this. Hope the rascal will jump from the Penang Bridge
14/01/2021 4:20 PM
_phoenix_ lmao...
14/01/2021 5:15 PM
Goldberg Stephane Bancel, CEO of Covid-19 vaccine maker Moderna, warned Wednesday that the virus will be around “forever.”

“SARS-CoV-2 is not going away,” Bancel said during a panel discussion at the JPMorgan Healthcare Conference. Notice that it is at JPMorgan Conference, surely JPMorgan know demand for glove is going to go up.

https://www.cnbc.com/2021/01/13/moderna-ceo-says-the-world-will-have-t...

JP Morgan realise glove demand is going to increase in upcoming future, no wonder they want to create panic so they can collect low.
14/01/2021 5:20 PM
OTB The retail investors do not have this type of financial strength to challenge JPM.
Shorting by JPM is not very fair play in KLSE.
My 2 cents comment.
Thank you.
14/01/2021 5:23 PM
Gaussian He should be investigated
14/01/2021 5:28 PM
14/01/2021 5:55 PM
Jack Khan should report this to minority shareholders watch group. When a big whale come in reporting while shorting it.
By the way this is how western(country) control others country exchange not to surpase their wallstreet. (if too much money go to other exchange their USD will drop).
14/01/2021 6:33 PM
KeepMoving chilla big boss
14/01/2021 6:54 PM
ruby20 from another community platform

@Nyago here attached, is the full JPMorgan report.

Few comments from first read:
- His fair value is based on 18x PE of FY2022 profit estimate
- While everyone is entitled to their opinion, FY2022 NP estimate for Topglove of RM1.6b is extremely bearish. The most bearish analyst of 23 analysts. Consensus has it at RM3.9b.
- I find his comments on correlation between share price of gloves vs number of COVID19 testing and how it's positively correlated an odd and inaccurate study. Global daily cases (related to global testing) are at record high but we are definitely not seeing all time high in glove share prices.
- Dividend yield of 12.6% in FY2021 is inconsistent with this own profit calculation for the same period at 70% payout.
- Having a blanket 18x PE of FY2022 on all glove within his coverage (KOSSAN TOPGLOV & HARTA) shows a lack of familiarity of the subject matter. HARTA from historical facts and figures, never trade at such valuation nor it had been categorized within same valuation bracket as the other glove makers.

Lastly @CRUSADER888 I don't think many glove bulls - other than KYY - uses "glove is needed to administer vaccine" as a strong case in point for their thesis. Glove usage on Vaccine administration helps to increase demand for glove, but it's not signifcant in the grand scheme of things. What's significant is more towards perception of hygiene. Afterall, assuming the entire world population requires a pair of glove for them to get vaccine done, that's merely 14b gloves. That's only about 4% of current glove demand.
14/01/2021 7:25 PM
Green888 The truth finally revealed. JPM your article is really lack of substance and a lot of unfounded data which is grossly inaccurate. Do more research before opening your big mouth.
14/01/2021 8:34 PM
HonestWarrior It is actually good that JPM made this article, it just shows that how shitty their analysis is, it's lucky that we have smart retail investors who don't listen to their bullshit
14/01/2021 8:51 PM
winston1 The funny thing is that, with all these falls reporting, nobody gets punished and even JP morgan don't take responsibility. Why the securities commission keeping quite with these type of irresponsible reporting?
14/01/2021 9:48 PM
petramaises Pity Jeffery. Probably he just want to keep his job during this pandemic. Wrote whatever boss told him to write.
14/01/2021 11:16 PM
sichin Hope Gillian Tan copied or circulate his email to JPM's CEO Regional CEO and Burse for investigation.
15/01/2021 12:35 AM
kinliang Is this our Jeffery? https://www.linkedin.com/in/jeffrey-ng-a1832010a/?originalSubdomain=sg
15/01/2021 12:35 AM
Andre Kua It is not wrong to assume the worst. Everyone can have their own opinion and that include your favorite uncle koon... LOL

I'm surprised uncle has not bought enough shares to join hand with Stanley to privatize Supermax.
15/01/2021 8:25 AM
moregain This guy is definitely manipulating the share price for Morgan Stanley agenda. SC and Bursa should fine them kaw kaw.
15/01/2021 8:42 AM
moregain He is working for Morgan Stanley, under pressure to tell lies or else he lose his con job.
15/01/2021 8:43 AM
Pinky Singapore got gloves shortage meh? Lee Hsien Loong cucuk vaccine also no gloves hahaha

IN B4 konspirasi Temasek jatuhkan industri sarung getah Malaysia XD
15/01/2021 9:22 AM
Orlando Complain d bugger n IB to BURSA n SC for absent of duty of care n professionalism n maybe even something more sinister
15/01/2021 9:23 AM
Goldberg Glove usage on Vaccine administration helps to increase demand for glove, but it's not signifcant in the grand scheme of things. What's significant is more towards perception of hygiene. Afterall, assuming the entire world population requires a pair of glove for them to get vaccine done, that's merely 14b gloves. That's only about 4% of current glove demand.
15/01/2021 10:12 AM
Vairocana9999 @Gillian, well said. Thanks for sharing.
15/01/2021 11:03 AM
Sales Good write up...
15/01/2021 11:11 AM
EatCoconutCanWin investors should know the negative image of glove company in malaysia. They treat the foreign workers like dogs or even like hogs. this is reality and nothing can change it from foreign investors view. Dont because of money you all forgot about karma. if you are one of the bangla/nepalise which working at that condition, how do you felt. pls....please...dont invest in such dirty company.
15/01/2021 1:43 PM
godhand no need to bash ppl with different opinion
15/01/2021 7:37 PM
Mabel Thanks for the great sharing Gillian.

My take away from this :

In Malaysia JP Morgan spend RM 1.8 Billion to attack Glove Fantastic Four by short selling. They also did the same manoeuvre in US. JP Morgan also said Tesla is worth $80 and shorted since $400 and losing almost $1bil on Tesla shorts now.

The truth finally revealed. JPM your article is really lack of substance and a lot of unfounded data which is grossly inaccurate. Do more research before opening your big mouth.

Meow
15/01/2021 7:44 PM
Goldberg The report was deliberately concocted to create PANIC. This well orchestrated plan with The Edge to mass publicise abject LIES about the GLOVE sector inMalaysia. JPM is a KNOWN Market Manipulator and the SC should reprimand them in their disgusting manipulation here . EPF is another big disappointment as they willingly worked with the DEVIL.-JPM.
15/01/2021 8:44 PM
Solomon7 The glove demand definite going to be great for next 6-12months. Those labor issues are akin to the palm oil environment issues.

In actual fact, JPM and the person who write the article have won by creating suffice publicity.

If the public is unite with the owner, push the price up and burn the shorties like Tesla.
15/01/2021 9:00 PM
supersaiyan3 Well "F". Good Job, keep it up.
15/01/2021 9:29 PM
calvin69 One of the most ridiculous things in the report - all stocks are valued on the same multiple! Hart has always traded at a premium to the sector. Valuing it at the same multiple as Kossan = nonsense
16/01/2021 7:23 AM
gemfinder Ni need to wear glives during jab. Not compulsory. Doc swipe ur butocks with alcohol pad, this is compulsory. Ok
16/01/2021 10:20 AM
Goldberg Whether GLOVES are used or not during vaccination won't affect the massive demand for GLOVES.

This is a very poor argument by JP MORGAN to bring down Gloves.

Glove usage on Vaccine administration helps to increase demand for glove, but it's not signifcant in the grand scheme of things. What's significant is more towards perception of hygiene. Afterall, assuming the entire world population requires a pair of glove for them to get vaccine done, that's merely 14b gloves.

That's only about 4% of current glove demand.
.
.
.
.
16/01/2021 10:42 AM
jeffchan1901 Has the US ban on TG gloves been lifted? been a few months. Any news? Did US accept TG action plan?
16/01/2021 11:47 AM
stockraider No mah!

Posted by jeffchan1901 > Jan 16, 2021 11:47 AM | Report Abuse

Has the US ban on TG gloves been lifted? been a few months. Any news? Did US accept TG action plan?
16/01/2021 11:57 AM
stockraider Imagine new players like Mah Sing put in millions & millions they want to close shop meh ??

No mah...they will stay n fight & fight loh!!

That means price war loh!!

If we assume demand will Flattened gloves prices also koyak mah!

Gloves ASP sky high temporary loh....!!

Existing Buyers will just walk away when there are plenty supply come on board due to new players capacity & existing players huge capacity expansion mah...!!

As JPM said demand will tapered & flattened due to vaccine come in full force this year mah...!!


Posted by jeffchan1901 > Jan 16, 2021 12:11 PM | Report Abuse

question is will global client pay top dollar for stocks or seek elsewhere?


Posted by pjseow > Jan 16, 2021 12:21 PM | Report Abuse

It is just too simplistic to.assume that when the pandemic is over ,demand for glove will.be back to pre pandemic time .in 2 to 3 years time. It is a wrong assumption to value the stock as pre pandemic valuation. Based on Topglove past 18 years records from 2001 till 2019, its revenue,earnings and.share prices has grown.at an average of about compounded 20 %. That means in every 3 to 4 years , its earnings.and share prices will double. Topglove is a 100 baggers from.2001 till 2019. If you extrapolate , Topglove would have double its share price of 2019 in 2013 based on its average gowth rate even without the extra ordinary pandemic. We should also not just omit the exceptional profits of abot 30 billions made betwren 2020 till 2023. This profits is sbout 8 x of what topglove made from 2001 till 2019. This is real cash if which 70 % will be rewarded bac to the shareholders as dividend and the balance 30 % will be used to re invest in its capacity expansion. The total dividend would be worth about rm 2 . The company will be at.nett cssh position compared with nett debt position in 2019. These 2 factors.should be considered in our valuations of topglove.

Posted by ks5S > Jan 16, 2021 12:22 PM | Report Abuse

Newbie will close shop due to not competitive
16/01/2021 12:32 PM
Goldberg Correct ! . @ PJ Seow.

It is a wrong assumption to value the stock at pre pandemic valuation. Based on Topglove past 18 years records from 2001 till 2019, its revenue,earnings and.share prices has grown.at an average of about compounded 20 %. That means in every 3 to 4 years , its earnings.and share prices will double. Topglove is a 100 baggers from.2001 till 2019. If you extrapolate , Topglove would have double its share price of 2019 in 2013 based on its average gowth rate even without the extra ordinary pandemic. We should also not just omit the exceptional profits of abot 30 billions made betwren 2020 till 2023. This profits is sbout 8 x of what topglove made from 2001 till 2019. This is real cash if which 70 % will be rewarded bac to the shareholders as dividend and the balance 30 % will be used to re invest in its capacity expansion. The total dividend would be worth about rm 2 . The company will be at.nett cssh position compared with nett debt position in 2019. These 2 factors.should be considered in our valuations of topglove.
16/01/2021 12:38 PM
stockraider Cannot deliver cannot sell loh!!

Even can deliver shipping cost very expensive, eat up profit margin mah!

Author: savemalaysia | Latest post: Sat, 16 Jan 2021, 11:39 AM

Blog Headlines (by Date) Blog Index
Malaysian medical glove exports face more delays amid shipping container shortage, say officials
Author: savemalaysia | Publish date: Sat, 16 Jan 2021, 11:36 AM

KUALA LUMPUR, Jan 15 ― Malaysia's medical glove makers face weeks of delays in delivering products to customers abroad due to a global shortage of shipping containers, hampering their ability to meet demand during the coronavirus crisis, industry officials said.

Supramaniam Shanmugam, president of the Malaysian Rubber Glove Manufacturers Association (Margma), told Reuters today the container shortage had eased after year-end festivities but the situation had yet to return to normal, with exports by glove makers still facing delays of two to five weeks.

Malaysia, the world's biggest producer of medical gloves, has been racing to meet skyrocketing demand due to the pandemic.

Margma said the lead time to deliver gloves to customers had increased by more than six months even as manufacturers ramped up production to cope with new orders.

Industry officials say the situation could return to normal by the end of February, after previously estimating export delays could continue until March.

“There are more empty containers available now. However, there may not be enough vessel space and we need to manage this till February,” Shanmugam said.

China saw a container crunch at the end of last year, sending cargo costs to record highs and hampering the ability of manufacturers to meet fast-recovering global goods orders.

The Malaysian National Shippers' Council said its members faced severe container shortages in the second half of last year and were still scrambling to secure space on vessels. It does not see the situation easing this quarter.

The shortage drove up freight rates by 300 per cent-400 per cent. The council's Chairman Andy Seo said higher rates were becoming the benchmark with exporters ready to pay a premium.

“Members have indicated that container booking requests get cancelled by the shipping lines at the very last minute unless manufacturers were able to pay higher freight rates, he said. ― Reuters
16/01/2021 12:42 PM
16/01/2021 12:42 PM
elbrutus stockraider ...u r definitely d PERMANENT RESIDENT in GLOVE FORUMS ...tell u what ...i shall have a word with TSLWC n ST to shut ur gap with a big big big angpow this coming CNY ...upon receiving u can balik kampong n retire to a wonderful life ...ok ...hihihihihiiii
16/01/2021 2:12 PM
calvin69 Stockraider - customer pays for the shaping lah. Not glove company. Complete muppet lah
16/01/2021 7:43 PM
VenFx Pay extra rm200/ for the bunkering fee and container fees.
Gao ding already.
16/01/2021 7:45 PM
VenFx Exporters take care the Onboard
Impoerter take care of the CFI
16/01/2021 7:47 PM


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