And in comparison to China .... Kossan utilization rate is 50%. Most Msian gloves are in utilization of 50% or below.
China is 90% ... becoz China has zero covid policy and they are still facing covid problem. Most gloves are for their Men-in-White-Suits and of coz doctors. So their gloves are really for internal use.

Many feels that once they stop zero-covid, ASP will be greatly suppressed bcoz China will have higher capacity to export out. I totally disagree bcoz if this is true, then China should run at 100% utilization rate.

I believe when China stops zero-covid policy, their utilization rate will be in line with Msia's rate of 50%.

I take Harta to be the benchmark. Kossan is more valuable than Harta ... In my humble opinion.
Once Kossan hit same price like Harta .. maybe I'll consider to let go. So either Harta comes down to meet Kossan price... or ... Kossan go up to meet Harta. But it's all speculation on my part.. But that's how I decide now bcoz I'm holding for long term investment.

HArta has 3.4bill outstanding shares. Kossan has 2.55bill outstanding share. If overall value of Kossan is more than Harta or even the same ... Kossan shld be price higher than Harta per share basis.

Pre-covid ... all gloves companies are just racing to expand to catch up with TopGlove's capacity. But now is different story. Being too big means higher overhead cost and not profitable.

Post-covid is optimum capacity to be profitable. So Kossan is going for better efficiency in production via automation and reduced workers. They already did that from 6000 workers to 4000. They can keep going to reduce their overhead cost. With their 2 bill cash, they can easily upgrade their production line.

Shld wait after dividend ex-date. 11 Jan 2024.
Price may drop then to buy more.

lazzo88

It's oversold and may be can consider chipping in some now

Hahahaa ... that's a good one bro.
Don't worry. The court case may take 3 years (Comparing to Grab vs MyCC case) before verdict is out.
Profit 120mill per quarter x 12 qtr = 1.44bill. Still good if the verdict comes out either way.

ChekHupCoffee

Mycc must investigate Indian barber cartel. Price has increased to rm15. Pre-pandemic rm10, after rm13. Now rm15.

Did you even get to buy YTL , YTL POWER , RANHILL and IWCITY at the low ?
Some of us bought in at Rm1 for Kossan. 😏

NatsukoMishima

Whole malaysia sapu YTL , YTL POWER , RANHILL and IWCITY tickets now , but u still dreaming in 2020 glove frenzy ! 🤣🤣🤣

I check on this website S!mply W@ll Str33t. replace !=i , @ = a, 3 =e.
Google it. . i3 refuse even post the webiste here.

Dakewlest

Chipee, where to read about affin hwang accumulating kossan stock?

I think rotation play for expectation on recession by EPF. Sime rid of hospital (healthcare) which is resilient during recession and into cars (UMW) which is discretionary and bad during recession.

hhhiii123

Epf dump so much but share price on fire, hehe

Affin Hwang has been accumulating Kossan. Up 1021.23% from their previous holding.

No need to say anything la . Just sue MyCC CEO for defamation for calling LHI a cartel. Kawtim....

gankm

Tan Sri Francis, please come out and say something. This has ruined the reputation of LHI.

GRAB sued MyCC. Took 3 years for verdict for GRAB. SO assuming LHI vs MyCC takes the same period of time ....LHI would have made the profit to cover the fines. But LHI should win if court is fair.

OH another thing more shocking ..... USD went up in PRICE.
MyCC should fine Bank Negara !!! 😂😂🤣🤣🤣🤣😂🤣

Dumb people would probably do it. .... Hahahahaha

Just Googled this ....

Padiberas Nasional (Bernas), a local conglomerate that controls rice distribution, last month announced a 36% rise in the price of imported rice, prompting people to seek out cheaper local rice.3 Oct 2023

MyCC should fine BERNAS.

During COVID, rice price also went up. MyCC didn't fine Bernas. Why?
Chicken and egg go up in price and they attack the 5 companies blaming on chicken feed ... bcoz they are Chinese owned. Racist government is BACK guys.

Chicken feed is made of soy meal and corn. Just like a commodity like rice. All commodity went up in price.

newbie_2018

Ayam, telur mahal because of LHI?

Pakcik Kiah

Pay the price for the crooked profits. I am sure this has been going on for years.

izoklse

In rupanya company pengkhianat negara. no wonder shareholder all selling and run. Government should not only fine 500 Mil. Patut fine 1 Bil and make them bankrupt to teach them and send message to other cartel. You go again govt wish and rakyat wish you will sakit or ditidurkan.

After LHI win the case against MyCC on the fine . LHI should sue MyCC CEO personally for defamation ... calling LHI a cartel.

MyCC can lose in court. Example, Grab won case against MyCC's fine. Leong Hup can win too.
https://www.malaymail.com/news/malaysia/2023/07/06/high-court-quashes-myccs-rm8677m-proposed-fine-against-grab/78251

Ayong21

Any brave soldiers sapu-ing LHI shares ? Company announce will take legal action against Gov Mycc decision. Get popcorn ready and watch show.

I see the price on upward trend. See if it breaks the 1.85 resistance... again.

Another thing from PIBB
Notably, the operating margin for 3QFY23 at 12.18%, has returned to near the prepandemic level.
This is good. :)

The word w@rmer was banned ... 😂😂😂😂🤣 ... replace "a" with "@"
Why?

Wah lau ... I had to filter out one by one to check which word/sentence was censor by i3.

2 good points I'm happy abt from PIBB
- Kossan is set to revamp its old machines and invest in automation, with an anticipated cost >RM100m in FY24F
- Kossan has also implemented workforce reduction, cutting its headcount by c.33% to 4,000 from a total workforce of 6,000 in FY22

Higher productivity and efficiency overall. Catching up with Hartalega. Kossan will show good profitability for now onwards. Kossan actually beat Harta in earnings for Q3.

2 points I disagree with PIBB
- Meanwhile, natural gas cost is expected to climb higher in 1QCY24, attributed to a time lag effect, but it is expected to normalize in the 2HCY24.

Msia Gloves was losing money bcoz natural gas was at USD6 - 9 in 2022. January 2024 contract for natural gas is around USD2.50, which is low and profitable for gloves. Time lag doesn't make sense, Dec contract was higher at USD3. but down to USD2.5 in Jan. Trend is showing downward pricing.

- While we anticipate Kossan to exhibit resilience in the short term, a note of caution is warranted for the long term as China's on-going expansion is likely to further solidify its dominance in the global market, at the expense of Malaysian glove makers’ market share.

Again on quality, especially used in Medical environment. Higher quality also has high shelf life. They can be more choosy now that it's no longer urgent use during COVID time.
Europe and US "de-risking" from China.
China expansion is for China use at the moment. THey are still facing COVID/Pneumonia cases and it's not so much of COVID is serious or not ... it's more of CHina policy of zero-covid target. The gloves are used more by the "men in white suits" spraying and sanatizing the area than doctors.

Why so slow one Topglv qr result? Got a feeling gonna be bad like Supermax. Late qr result also. hai ....

Not just that. Glove seeing recovery in demands.

ryoyagod

Wow, suddenly gloves sector shooting up today. Resurgence of COVID-19 cases?

Nice ... :)

klee
Sounds familiar ? :)

AS for Topglv .... I'm not counting on them for good result. I hope they can pull through but chance are low bcoz of their size. Supermax didn't come out with a good result and they are the same size as Kossan.

KLEE, totally agree. I'm looking at nat gas hovering at reasonable price. I believe Qtr4 would be good. And Jan24 nat gas contract is selling below 2.5 ... we will see better result for Q124. It's all up earning from here forth.

It's the end of the year. These funds are rebalancing their portfolio. Some are taking profit to provide dividends to their investor or for tax purposes. So these selling is no issue. Wait till early next year. I believe more buying will ensue.

It's the end of the year. These funds are rebalancing their portfolio. Some are taking profit to provide dividends to their investor or for tax purposes. So these selling is no issue. Wait till early next year. I believe more buying will ensue.

Ya la .. just checked the MACD .... at breakeven point. Can go higher.

Ya ka? OK lor .. Resistance 2.1 ... I likey :)

Kossan must break resistance 1.85

Then makan ayam from gerai2 lor .... no worries

facsc118
Still boikot mcd and kfc, ayam tak laku di indonesia and malaysia lo

H1N1 not from Malaysia or ASEAN region. Maybe they hv to buy chicken from LHI ....

"Hong Kong has suspended imports of poultry meat and products from parts of the United States, Britain and Poland following outbreaks of highly pathogenic H5N1 bird flu."

https://www.scmp.com/news/hong-kong/health-environment/article/3244721/hong-kong-suspends-imports-poultry-meat-and-products-parts-us-britain-and-poland-following-h5n1-bird

I never trust analyst TP. THey have they own agenda.

ChandranG

Lol, Kenanga's TP is ridiculously low

Welcome lazzo88

And I see natural gas is ranging around USD2.50. Good.
This was the cost that caused losses to Msia gloves.

Covid hospitalization increase in US and Europe. It comes in wave. Hopefully use up all old gloves and restocking is in order.

I think expectation of decision by MyCC fines on 5 poultry feed companies coming year end. If LHI found guilty, fine is Rm154mill. But I don't think there will be a fine. Soy meal and corn price when up . Of coz price of chicken feed goes up. This MyCC simply abuse power ... KNN!

This current ups and downs ... I take it as normal trading pattern. I ignore it. Does not upset me.

Lu ho liao ... And lu are correct. Kossan is good. I'm excited to see Q4 result ... But hv to wait Feb 24 ... Some more dragon year ... see got boost on sentiment boh? Hehehe...

Penang_lang

Those condemned Kossan ask yourself why EPF buy Kossan not Harta, TopGlove or Supermax.

Anyway this recent down price is due to Clarinden Investments Pte Ltd dumping shares. They are 3rd most LHI shares.

LHI cannot control the market price. These has to do with anchor investors that hold the shares. Maybe they dump after their lock-in period expired. Nothing to do with LHI.

gankm

Please remember the IPO price for LHI is $1.10. The share price started to drop after second day of listing and never ever went above $1.10. So is right to say LHI is a conman company just like Malakoff. Am i right?

Ya. I know. Don't count on "new virus". Have to wait for another 100 years.
Waiting for oversupply during covid to finish and back to pre-covid orders/demands.

Likesung

Chipee
Now covid is very mild nothing different with normal cold so gloves supply are normalize

Why do you said that?

gankm

Better drop back to $0.50 cents. Really a conman company that like to con people. Investment bank should put it "sell" call instead of "buy" call.

LHI had reduced their capex. The free cash flow as this quarter 743mil. By end of the year will be close to 1 bill. To me this is favourable bcoz they will be reducing their debt. This quarter they reduced their debt by Rm255mill q-to-q

Nobody is hoping for NEW VIRUS la.... Case goes up, usage of gloves goes up.
Common sense la.... Ohio and Europe increase cases of pneumonia due to bacteria. U think we hope for kids to die ... Wahlau eh!

And another thing ... TopGlove is the biggest glove producer in the world.
In normal/good market condition and demand is strong, TopGlove is favourable becoz they somewhat decide the ASP. Being the biggest producer and economy of scale, they can make profit via volume play.

But in bad condition (low demand aka low volume), their high overhead cost becomes a problem. They have to maintain a certain ASP which becomes favourable to smaller players. In this situation, smaller players can achieve profit first. And if demand keep staying weak ... smaller players are favourable. Hartalega proves this fact to be true when the shutdown their Bestari Jaya plants. And the next quarter (Q3), Harta becomes profitable. So Kossan, Harta and Supermax is in sweet spot when it comes to production capacity size.... for current demand condition. I believe Supermax make a loss in Q3 bczo of their US venture.

That's a very good point. Thx

Felix666888

Customer stock bought during Covid time either already expired or near expiry because medical glove`s shelf life is about 3 years. You will see demand back to pre Covid time very soon. ASP price will be going up due to demand normalized.

But as of now and uncertain market condition ... Kossan is sitting pretty.
We know most of the world is in negative GDP. Companies with strong cash position is very favourable.

Yeah. No doubt. But we look at how their strive in challenging situation. I would look at that EPS, NTA and ROI....during good times (pre-covid). And you only burn cash if you make a loss. Kossan and Harta are profitable. They are sitting on cash, making them easier to go through hard times and lower debt. Once profit are more consistent from quarter to quarter ... they can decide what to do with it ... share buy back, special dividend, green energy tech etc ....

BobAxelrod33

Thanks, but you have forgotten the basics......EPS, NTA and ROI.....just sitting on a pile of Cash won't work as they are burning cash.

1 Kossan: Q3 Profit 41mill. Cash 2+bill.

2 Hartalega Q3 Profit 29mill. Cash 1.6+bill, Production capacity similar to Kossan. Use to be favourite for dividend payment but Harta cannot pay similar dividends anymore.
Harta used to be more efficient in production but the lower profit (comapre to Kossan) might suggest Kossan had stepped up their game in efficiency.

3 Supermax: Q3 make a loss. Cash 1.6+bill, Production capacity similar to Kossan. Mistake to invest in US. US is problematic with labour unions (high labour cost) and strict regulations.

4. Top Glove: Q3 make a loss. Lowest cash among the 4. Production capacity is high but utilization rate is low, hence overhead fixed cost is high causing net loss. Should demand goes back to pre-covid, then maybe TopGlove can reclaim no. 1.