Breaking news: Pohuat to reward long term shareholders in term of bonus issue and special dividend in appreciation of the support

Poh Huat management start the recruitment after improving order after headcount recruitment freeze after nearly half year. This is align with the improve order.

Breaking news: Poh Huat Vietnam plant has started increasing capacity to meet resume increase order from United Stated after half year of low utilisation.

Breaking news: Bull Riding with glove stocks

Breaking news: Foreign funds buying more Kossan from the short position local institutions. The outcome is local institutional funds suffered the loss from unexpected foreign funds buy in

Breaking news: Local institution funds warn of long trading of glove stocks as the major business environment still not able to make profit despite the recent ASP increase. Take profit

Breaking news: Local institution funds warn of long trading of glove stocks as the major business environment still not able to make profit despite the recent ASP increase. Take profit

Breaking news:
https://www.facebook.com/100052272771984/posts/pfbid0yN6xqAyuJNEP8NEWQSDWFP3Mt7a5XpYhzKYfbjRquo5hBZstUv3QqM7eEsNQnRLPl/?mibextid=SDPelY

Breaking news: Japan big institutions fund buy in Harta, local institutional funds continued short position

Breaking news: Based on foreign funds. Inflow, Kossan, Harta and Supermx are the preferred choice for the portfolio remap strategy

Breaking boring and repetitive news: KUALA LUMPUR: Kenanga Research expects the operating environment for the glove sector to remain challenging in subsequent quarters, plagued by massive oversupply, reluctance of customers to commit to sizable orders and hold substantial stocks.

The firm said the Malaysian Rubber Glove Manufacturers Association (Margma) had projected a 12 per cent-15 per cent growth in the global demand for rubber glove annually from 2023.

The association also believed that the supply-demand equilibrium might return in six to nine months.

"However, we beg to differ, expecting the overcapacity situation to persist at least over the next two years.

"Based on our estimates, the demand-supply situation will only start to head towards equilibrium in 2025 when there is virtually no more new capacity coming onstream while the global demand for gloves continues to rise by 15 per cent per annum underpinned by rising hygiene awareness.

"Still, capacity is seen to expand further in 2023," Kenanga state in a note.

It projected the demand for gloves to rise by 15 per cent in 2023, which was consistent with Margma's forecast.

However, this will do little to ease the overcapacity situation as the global glove production capacity will grow another 16 per cent to 595 billion pieces during the year, as more capacity planned by incumbent and new players during the pandemic years - enticed by super-fat margins that had evaporated - finally come on-line.

This will result in the excess capacity rising by 22 per cent to 137 billion pieces from 112 billion pieces in 2022.

"The expanded overcapacity means low prices and depressed plant utilisation will likely persist in 2023.

"Not helping the already dire situation is the reluctance of customers to commit to sizable orders and hold substantial stocks on expectations of further decline in prices," it said.

Kenanga Research's 2023 forecasts assumes an average selling price (ASP) of US$20 per 1,000 piece, translating to an estimated 10 per cent decline over 2022.

It also estimated an average plant utilisation of 50 per cent versus an estimated 60 per cent in 2022.

"During the 2014/2015 downturn, ASP of nitrile gloves went as low as US$17/US$18 per 1,000 pieces while industry utilisation was at around 65 per cent-70 per cent.

"We advocate investors to avoid the sector for now, and not have any top pick for the sector," it added.

Kenanga Research gathered that some players were hopeful that the rate of decline in ASP is slowing, while others believe selling prices had bottomed.

Hopeful that selling prices have bottomed out, certain players will attempt to raise prices starting from March 2023 by an average of five per cent from ASP US$19-US$21 to US$20-US$22.

"We are uncertain if this is viable as we gathered from sources that Chinese players are still undercutting by selling as low as US$14-16 per 1,000 pieces."

The firm maintained an "Underweight" call on the sector.

Breaking news: China glove maker start to increase ASP in March at average 10% to compensate the raising of labor and energy, and as well earth anti pollution cost. With this increase expected global ASP price worst time is over.

Breaking news: Foreign funds continue acquired Kossan despite local institutional funds maintained increasing short position in Kossan with expectations coming QR will incur a bigger loss.

Breaking news: Local institutions funds still continue increasing the short position. Warn retailers to better avoid long position.

Breaking news: Glove industry worst time is over, recovery in progress. Supply decreased after many of small manufacturers exit market due to unprofitable business and cost ineffective.

Breaking news: Local institutions funds increased short position for Harta

Breaking news: Local institutions funds continue short Kossan with the expectation Kossan will not able to recover the business within this year due to prolonged low ASP

Breaking news: Local institutions funds continue short Supermx with the expectation Supermx will not able to recover the business within this year due to prolonged low ASP

Breaking news: Mphbcap likely to be taken private for internal restructuring. Price range proposal offer could be range in between 1.60 to 1.80 which is below NTA 2.80, source said.

Breaking news: Kossan and Harta management is preparing to ramp up production volume due to increase in order after multiple customers from medical sector old stock depleted.

Breaking news: Kossan and Harta management is preparing to ramp up production volume due to increase in order after multiple customers from medical sector old stock depleted.

Breaking news: The research house said Kossan will still pay out dividends for profit-making financial years, adhering to its dividend policy of 30%.

“Kossan’s expansion plans will also be put on the back burner, as the low utilisation rate of about 50% is sufficient to cater for existing orders.

“Its cash pile accumulated during the upcycle will be crucial to help Kossan weather through the downcycle,” said HLIB Research.

The research firm maintained its “hold” call on Kossan with a lower target price of RM1, valued on a price-to-book multiple of 0.66 times.

“Despite the headwinds, we maintain our ‘hold’ rating on Kossan as we believe its strong cash position will help the group to better navigate the downturn,” it said.

Breaking news: Earnings adjustments. We forecast an FY23F core loss of MYR120m from a profit of MYR33m to account for lower effective capacity, lower utilisation rates, and a weaker USD.
SELL with higher MYR0.62 TP after tweaking our DCF assumptions. Our TP implies 0.3x FY24F P/B, against its pre-COVID-19 historical mean of 1.6x. We think SUCB’s previous aggressive expansion plans and OBM business model (typically carries high fixed costs) could be detrimental to its efforts to streamline its cost. Key risks: Higher-than-expected sales volumes, stronger- than-expected USD/ MYR, and lower-than-expected raw material prices.

Breaking news: Supermax to close down some cost inefficient plants and relocate to more efficient automated production plant to improve the bottom line cost performance. Analyst expected with this cost reduction activity, Supermax expected able to cushion the rising cost impact and low
ASP. Analyst expected likely with this exercise, Supermax able to reach break even performance.

Still give dividend, no bad

Breaking news: Supermx key stakeholder potentially proposed to acquire one of the profitable Electronic Vehicle (EV) company from excess internal funds.

Breaking news: China glove maker started to raise the selling price after old inventory clearance. Due to major cost raising burden, the increase price is unavoidable to keep the business running profitable.

Yaya, 108 mil loss, warning already give, who run today have a nice sleep

108k huge loss...who kena trap today?

Breaking news: Local institutions investment funds expected the upcoming Supermx
QR will see a bigger loss compared with previous quarters. Advised strong sell with target price 0.50

Breaking news: Local institutions investment funds expected the upcoming Kossan QR will see a bigger loss compared with previous quarters. Advised strong sell with target price 0.70.

Breaking news: KUALA LUMPUR: Hong Leong Investment Bank Bhd (HLIB) is pessimistic over Kossan Rubber Industries Bhd's' near-term prospects, plagued by soft average selling prices (ASPs), low utilisation rate and cost pressures.

HLIB trimmed its earnings forecast for Kossan for financial years 2022 (FY22), FY23 and FY24 to RM179.3 million, -RM29.4 million and RM150.9 million.

The forecasts were made as HLIB lowered its utilisation rate assumption, tweaked cost assumptions and recalibrated its ringgit against the US dollar assumption to be in line with house view.

"Glove ASPs have continued to remain soft, following normalising demand post-pandemic and glove buyers are still paring down on existing stockpiles.

"We gather that the Chinese nitrile glove players have slashed prices to US$13.50 per thousand pieces to continue defending market share, while Kossan's nitrile gloves are priced at US$16 presently.

"With idle capacity available, Kossan also took the opportunity to decommission two to three older manufacturing plants that are less efficient, and to only focus on newer and faster lines in order to improve cost efficiency," it said.

HLIB noted that the total supply in the market would be further reduced as some of the smaller-scale, local glove makers had either halted operations or entirely exited the market.

Nevertheless, it viewed that ASPs would remain depressed in the coming quarters as the demand-supply imbalance would take time to dissipate.

It added that plagued by the minimum wage revision and foreign labour shortage previously, Kossan's labour costs had remained elevated.

"The situation will be further aggravated moving into FY23, as we are expecting fuel costs and electricity costs to increase as well.

"Judging from the difficult operating conditions, we think the increase in costs will continue to exert downward pressure on Kossan's earnings, as it is rather unlikely for Kossan to raise its ASPs significantly to pass on the additional costs," it said.

Kossan expansion plans will also be put on the back burner, as the low utilisation rate of 50 per cent is sufficient to cater for existing orders.

Its cash pile accumulated during the upcycle will be crucial to help Kossan weather through the down-cycle, said HLIB.

HLIB maintained a "Hold" call on the stock with a lower target price of RM1.

Breaking news: Analyst expected to see higher loss bottom line for coming QR released. The higher cost from energy bill and labor cost plus the weak ASP will added the burden to the bottom line performance in last year. Nevertheless, 2023 will be a turnaround for Supermax from the cost cutting resulted from automation and improving ASP. Analyst continued to stand a SELL (target 0.50) call until the business environment turned into positive.

Breaking news: Coraza plan for right issue and internal funds for plant expansion from the order increased trend. Currently the plant utilisation 95%, expected to grow in next 5 years

Breaking news: Harta confident the worst is over and 2023 is the cycle to bottom out from the unfavourable business environment. 2023 expected to break even or minor profit from the high depreciation cost.

Breaking news: Local institutions funds (in short position) pre warning investors and trader about coming QR performance, expected glove company especially Topglove will continue making a huge loss. The current plant utilisation and ASP is still at loss making situation. Nevertheless, foreign fund still continues accumulating glove stock.

Breaking news: Kossan will explore to acquire new growing business with the existing strong cash flow which obtain during the Covid19 pandemic to improve the revenue pipeline and bottom line result

Breaking news: Medical sectors commented they still prefer Malaysia glove due to high quality compared with China glove with lower ASP. When they performed sourcing criteria,
China glove still far behind to meet the medical stringent requirements whereby Malaysia glove Harta and Kossan always exceeded requirements criteria.

Breaking news: One of the largest fund from Japan institutions fund is acquiring more Harta during the price weakness

Breaking news: Harta and Kosssan added more by foreign funds due to the better risk management and huge cash in balance sheet compared with Topglove

Breaking news: Coraza management will propose special dividend and bonus issue to reward shareholders

Breaking news: Local institutions funds observed reduced in short position for Topglove and Harta with recent good news of glove stocks raw material price reduced significantly which able to cushion the low ASP. Foreign funds continue acquired more Topglove and Harta

Breaking news: Cash rich company Kossan expected to reward shareholders from the excess cash which obtain during the Covid19 pandemic time with expectation Q2 2023 operational back to normal.

Breaking news; KUALA LUMPUR: Kossan Rubber Industries Bhd could be loss making in the first quarter of financial year 2023 (Q1FY23) as utilisation rate remains low at 50 per cent.

According to Public Investment Bank Bhd (PublicInvest), Kossan's earnings were expected to narrow in FY23 due to dampening average selling prices (ASPs) and escalating costs.

"As Chinese nitrile producers slashed prices to as low as US$13.50 per 1,000 pieces in November last year, ASPs are expected to remain under pressure in the coming quarters.

"Meanwhile, the average natural gas price has increased to RM64 per one million British thermal unit (MMBtu) in January 2023 from RM55 per MMBtu, while electricity cost increased by over 30 per cent. In addition, labour cost remains elevated due to supply shortage," PublicInvest said.

Although latex prices had eased, the firm said it was not sufficient to offset the impact of rising energy and labour costs.

However, Kossan's Technical Rubber Product segment should provide some cushioning effect though contribution is unlikely to grow, but to remain stable in the near term.

PublicInvest added that overall market demand remained weak with consumption falling below pre-pandemic level, mainly due to stockpiling and inflationary pressure.

"Therefore, we believe major customers would not have the urgency to place huge orders in the near term.

"Even though China is currently facing an outbreak due to the highly contagious Omicron variant known as XBB.1.5, a sudden surge in demand for imported gloves is not expected to occur as China has sufficient capacity to meet the potential increase in consumption," it said.

PublicInvest said Kossan was taking steps to reduce cost as well as conserve cash.

Despite its strong net cash position of RM1.9 billion, Kossan has placed its near-term expansion plan on hold amid oversupply issues.

"The number of its total workforce has also been cut from 7,000 to 5,000. We believe staff strength will continue to fall as Kossan adopts greater digitalisation in its production process."

PublicInvest trimmed its FY23-25 earnings forecast by 39-40 per cent to reflect lower ASPs and higher operating cost.

It also downgraded its call on Kossan to "Underperform" with a lower target price of 75 sen from RM1.23 previously.

Breaking news: Harta owner optimistic with the recover of glove ASP and plant utilisation and significant decreased of direct material price. Kossan plan to reward long term investors

Breaking news: Local institutions fund warned of retailers buy Topglove and Harta as the current ASP still non profitable position. Local institutional funds still continue short the major glove stocks

Breaking news: Glove stock worst time is over due to recovery of ASP and drastically dropped of raw material price

Breaking news: Glove manufacturers benefited from cheaper raw materials price which able to improve bottom line results significantly

Breaking news: Glove manufacturers benefited from cheaper raw materials price which able to improve bottom line results significantly

Breaking news: Kossan will surprise everyone. To be announced