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07 September 2020

 

STOCK  : TOP GLOVE CORPORATION BERHAD 

 

Current Price : RM8.38

Target Price : (IMD TP - RM12 - Before QR)

[After QR - TP1: RM18 - TP2 RM21 - TP3 RM25 - TP3 RM29]

 

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Kim's Prediction TP & Profits : 

 

Q4FY20

 

PR (PAT) 900M = 900/400 = 8.40 x 2.25 = RM18.90

 

PR (PAT) 1.0B  = 1000/400 = 8.40 x 2.50 = RM21.00

 

PR (PAT) 1.2B  = 1200/400 = 8.40 x 3.00 = RM25.20

 

PR (PAT) 1.4B = 1400/400 = 8.40 x 3.50 = RM29.40

 

 

THE BEST PROFITS AT Q1FY21 = Take my notes! You want to know more? Be part of KGT members.

 

 

 

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WHAT KIM SAY?

 

"I have no doubt after I went through more details on this ship. I am captain for KGT, I did called my crew to onboard, so the captain is last to leave a sinking ship. Lets see September as a best month to SKYROCKET TOP GLOVE!!!"

 

Do you believe it? 

"From my perspective view in a short-term. With Covid-19 flash point still happening around the globe, I believe Top Glove and other healthcare counters will continue to do well because of shortage & booming demand!!".

 

 

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(5 POINTS) :-

MY 3 POINTS WHICH IT WILL BOOST GLOVES COUNTER & RELATED:

 

1. COVID cases are rising globally

• Global cases pass 25m heading to 30 millions.
• With the opening of economic activities in several countries and the increasingly complacent attitude of the general public, it is no surprise that COVID cases are spiking once again.
• The case may be especially true for India’s capital, which had started celebrating reaching “the peak” of the pandemic, after noticing a decline in new coronavirus cases and deaths. This ‘success’, however, was shortlived as Delhi is once again witnessing a fresh wave of coronavirus cases. A similar spike in COVID cases is being noted in European countries amidst growing concern over a second wave of the pandemic.
• Coronavirus cases are on the rise again across more than half of the U.S.
• Covid-19 has so far killed at least 186,800 people in the U.S., according to data compiled by Johns Hopkins University.
• 1st top cases is USA at 6.440.816, 2nd row is India with 4.196.131 and 3rd row is Brazil with 4.123.000 cases.
• World Live Stats as follows : Total Cases = 27.194.541. Total Deaths = 885.752. Total Recovered = 19.287.392

 

2. Surgical glove makers struggle to keep pace with booming demand

• The global PPE market - from masks, gowns and gloves, to shoes and sanitising gels - is expected to balloon from US$52 billion in 2019 to US$93 billion in 2027.
• US-based Allied Market Research estimates that the global disposable gloves market amounted to US$6.8 billion in 2019, and is expected to nearly triple to US$18.8 billion by 2027.
• Malaysian manufacturer Top Glove, which describes itself as the world's biggest producer of rubber gloves, said it is seeing orders for 11 to 12 billion a month, compared with 4.5 billion prior to the pandemic.

 

3. WHO says don’t expect vaccine distribution before mid-2021

• The large-scale global distribution of vaccines against COVID-19 is not expected until mid-2021.
• So realistically speaking, probably the second half, the middle of 2021 - maybe the second quarter, the third quarter of 2021. This timeline is based on the fact that Phase 3 trials of many candidate vaccines are not expected to be concluded until the end of the current year, the WHO’s chief scientist said.
• None of the candidate vaccines in advanced clinical trials so far has demonstrated a “clear signal” of efficacy at the level of at least 50% sought by the WHO.

 

 

MY 2 POINTS WHICH IT WILL BOOST TOP GLOVE:

 

1. Incoming spectacular result this month

• Top Glove restult will be release about a week or more this month. I wont eleborate more about their result. Wait and see because this is just a beginning Superb result.
• Positive notes by its chairman Tan Sri Dr Lim Wee Chai. He wants Top Glove to become Malaysia’s second Fortune Global 500 company after Petronas by 2040, with an annual revenue of US$35 billion.
• Once the result announce, we will see a big jump added to their prices (more than +MYR 5)

• The U.S. Customs and Border Protection (CBP) placed a detention order on imports from two subsidiaries of Top Glove two weeks ago, an action taken on firms suspected of operating with forced labour.
• CBP enforced a detention order on disposable gloves manufactured by Top Glove’s subsidiaries, Top Glove Sdn Bhd and TG Medical Sdn Bhd, due to suspected foreign labour issues.
• Top Glove's independent consultant completes verifications, audit report for US submission.
• Top Glove had, on Aug 10, 2020, commenced part remediation for recruitment fees amounting to RM4.4 million to 9,204 of its migrant workers who joined the company prior to the implementation of its Zero Cost Recruitment Policy in January 2019.
• The total remediation fee to be paid is estimated at RM53 million, subject to finalisation with the US CBP.
• The company said it continues to enhance its migrant workers’ working and living environment and facilities to ensure their well-being is always well-cared for.
• Once the result announce, we will see a big jump added to their prices (more than +MYR 3)

 

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KNOWING THEM?

WHAT THEY DO?

 

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Best Regards,

 

KIM 

 

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