probability

https://www.amequities.com.my/documents/20126/0/Luxchem+Corporation+200218.pdf/5b2b4b28-e743-3e69-5b70-2c14b008e21e?t=1581992694717

2020-05-14 20:24

probability

Aminvest published the above report on 18Feb 2020 before really knowing at what PE Gloves stocks will be trading in March, April and now May...

2020-05-14 20:27

probability

Aminvest also published the above report in Feb 20 considering the risk in disruption in supply from China. But now China is up and running like no other country.

2020-05-14 20:31

probability

Nice write up by "Sky is the limit":

http://skyisthelimitskyisthelimit.blogspot.com/2017/04/next-growth-engines-of-luxchem-part-1.html

2020-05-14 21:18

probability

Transform Master (TMSB) - fully Owned by Luxchem, supplies chemical to gloves industry

http://transformmaster.com.my/v1/

http://transformmaster.com.my/v1/index.php/product-service/latex-compounding-chemicals

We are focusing on rubber latex industry include latex glove, latex toys, latex foam, latex thread, catheter, condoms, finger cots, balloons, latex exercise bands & etc. We also provide OEM service, design formulation for our customer based on customer requirements.

..........

The chemical consumption will be directly proportional to the gloves demand

2020-05-14 21:23

probability

https://www.ytygroup.com.my/

YTY's mission for over 30 years has been to keep frontline employees safe through the manufacture of high-quality, single-use Examination gloves. Our original corporate ethos around quality, service and value continues to drive us today, making us one of the largest and most reliable manufacturers of single-use Examination gloves in the world.

Today, YTY is one of the largest manufacturers of Nitrile Examination gloves, but also a leading supplier of Polychloroprene Examination gloves, which offer unique advantages relative to Nitrile gloves. Beyond single-use Examination gloves, YTY offers single-use Surgical solutions as well, available in both the Polychloroprene and Polyisoprene synthetic polymers.

.....................

YTY Increases Its Medical Glove Donations During the COVID-19 Crisis
Wednesday, April 1, 2020

https://www.ytygroup.com.my/yty-increases-medical-glove-donations-during-the-covid-19-crisis/

2020-05-14 21:28

probability

RHB report 18 Feb 2020:

https://research.rhbtradesmart.com/attachments/81/rhb-report-my_luxchem-4qfy19_results-review_20200218_rhb-b-350989118756393355e4b34d840429.pdf

as we expect Luxchem Corp’s trading segment to benefit from higher demand from the glove-making sector – particularly in 1Q20 due to COVID-19. We also raise P/E to 14x from 13x, as we believe its significant overseas exposure is a plus, given the soft domestic economy.

..........

RHB need to revise the PE looking at gloves stock


Luxchem = 35% (revenue from glove companies) + 65 % others

as such 35% of Luxchem current market cap should trade at PE 50 at least

Required PE = 35% x PE50 + 65% x PE20

= PE 30

as such Luxchem at PE 30, should be trading at PE 30 x 4.2 cents

= 1.26
.......

2020-05-14 21:35

probability

Good write up from Sky is the Limit:

http://skyisthelimitskyisthelimit.blogspot.com/2017/04/next-growth-engines-of-luxchem-part-1.html

Follow by Luxchem's acquisition of Transform Master Sdn Bhd (TMSB) since April of 2016, TMSB has contributed to Luxchem's revenue and profit positively.


Who is Transform Master Sdn Bhd?
.................................

http://transformmaster.com.my/v1/

TMSB is a chemical manufacturing plant who mainly produce rubber latex chemical dispersion, latex processing chemicals, latex surfactant, dispersasant & specialty chemicals for latex industry.


Their plant is strategically located at Lumut Port, which is nearby to well known Malaysia oil and gas giant, SapuraEnergy Fabrication yard.


What is the reason behind for Luxchem to acquire Transform Master?
..................................................................

Which I believe Transform Master's main customer, YTY Group is the main driver behind. YTY is the medical glove manufacturer located in Perak and they are in aggressive expansion mode.


"Back to year of 2010, they have some of the most modern and automated lines in the industry. Our current production capacity exceeds 8.2 billion pieces of gloves a year"


YTY First GLove Factory Located at Lekir Perak

"By year 2012, our production capacity would have increased to 10.5 billion pieces a year" (Quoted from YTY Group Website)


The capacity towards 10.5 billion pieces of medical gloves was underpinned by their second factory which is located at Lumut Port, under the name of Green Prospect Sdn Bhd.


Now, YTY Group has further expand their capacity aggressively through their third plant located at Lumut Port too, just next to SapuraEnergy Fabrication yard. There is a huge parcel of land which allows YTY group DOUBLE UP their capacity easily.


I believe their third plant has started production but yet to fully operated. As you can see from photo, the plant is equipped with workers dormitories too. With the uninterrupted water supply in Perak and strategic location beside the Lumut Port, YTY Group is in the right direction to further expand their business globally.


As such, I believe Transform Master Sdn Bhd, as the sole supplier of Latex Processing Related Chemicals will continue benefited from the aggressive and stable development of YTY group, locally and regionally.

keyword - "sole supplier"

2020-05-14 23:06

probability

https://www.theedgemarkets.com/article/luxchem-seen-grow-exports-margins

i) Transform Master Sdn Bhd (TMSB) in the latex industry: The production is operating at nearly full utilisation rate with capacity remaining at 13,800 tonnes per annum. The group’s plan to increase TMSB’s capacity to 18,000 tonnes per annum by 3QFY19 has been delayed due to warehouse and labour constraints, with expansions slated to be completed by the end of 2019.

.............

The above clearly shows that the expansion has NOT taken place on its qtr ending Dec 19.

And the expansion in 2020 will be:

= 18,000/13,800
= 30%

This will be shown on Q1 20'

2020-05-14 23:34

probability

30% rise in revenue (before rise in avg selling price), will have explosive impact on profit

2020-05-15 14:01

probability

Yu_mee, why dont you recommend those high ranking good enough stock

2020-05-15 18:22

qqq33333333

not really a proxy......gloves benefit from exchange rates, lower raw material costs , higher volume , higher selling prices.............Lux same meh?

2020-05-15 18:24

uptrending

oskrhb published a report on the 5th of May, TP 0.58

2020-05-15 18:38

uptrending

Aminvest today :share price run ahead of fundamentals, TP 0.55

2020-05-15 19:25

probability

China car sales mark first rise in nearly two years, mainly due to heavy trucks

12-May-2020

https://news.cgtn.com/news/2020-05-11/China-car-sales-mark-first-rise-in-nearly-two-years-QptUBit5W8/index.html

polyester resin mainly used for the surface finishing of trucks & cars should be back to normal, while raw material cost declines

2020-05-16 13:03

probability

The demand for gloves will rise by 50%

Nanyang Sat, May 16, 2020

https://www.klsescreener.com/v2/news/view/677697

2020-05-16 15:01