Boon Keng Copy from “manage our finance” fb pages. 

For reading purpose. This is not a *buy/sell call* 

Comfort AGM. 

1) How many production lines will Comfort increase in 2020 & 2021? 
We will add 5 production lines, a total of 58 production lines, these five new production lines will add 600m gloves. In total there will be 6b gloves. 

2) How do you compete with other glove companies? 
We focus on professional gloves, which makes us more different than other glove manufacturers, and we also work closely with customers and manufacture gloves that meet their requirements 

3) What is the current price of gloves? 
Last year's price was USD 22, the previous quarter was USD 25-27, followed by USD 30-35. We will continue to increase by an average of 5-10% every month. 

4) Comfort invested in automation systems. How much can this help the company? 
Automation makes our operations more efficient. We implement automation step by step to avoid affecting daily operations too much. When automation is implemented, our labor costs will fall by 8% 

5) How much can energy-saving systems reduce costs? 
Will save 10% of natural gas (gas) 

6) The company's investment in subsidiary has an impairment RM 101m, what is this? 
These are the Impairment before the new management enters the company. It is about Comfort Rubber Glove Industries S/B (RM 90.3m) & PBT S/B (10.9m). These are things that happened a long time ago. If the accounting standards allow it in the future, it is possible to do reverse of Impairment 

Opinion: It is usually not easy for Impairment so long ago to do reverse, so investors don’t have to expect too much 

7) I see that most of the market share of the annual report is in Malaysia. Why not sell more to the US? 
In fact, these are sold in Malaysia, but eventually they are shipped out to foreign countries 

8) Does FDA Import alert affect the company? 
No effect at all. 

9) What is the approximate price of Spot Order? 
It is about 12%, the price is definitely higher, most of them will not channel more than 100 USD 

Opinion: We can see that the boss is very enthusiastic about the glove business, and it is not a company that only looks at profit. The management stated that doing business must look at the long-term, not just sacrificing long-term customers at hand because of higher profits in the short term. At present, the price of Comfort gloves is indeed lower than other gloves manufacturers, but for smaller companies, this approach is also more appropriate. After all, they do not have as many different customers as other large companies. We also saw Mr. Guan Youyuan, who also praised the performance of the management, and also mentioned that more rewards should be given to the management next year. Preliminary calculations, assuming that before selling USD 26, now selling USD 33, then the company's turnover will be as high as RM 194m, an increase of 41m in profit compared to the previous quarter's RM 153m. This performance is pretty good. 

Note: 

The boss also mentioned that TopGlov spot order reach a high of 170 usd. 

Likeky Comfort PAT for next quarter around 35mils at eps 5.6-6.0 cents which translate to 3.50-4.00 based on forward PE20. 

Mr Koon complemented the management and said he'll acquire more shares.