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

Breaking news: Harta expected to show QR loss result, the ASP improvement will only see in next QR with breakeven or small loss. Stock price expected remain consolation

Breaking news: Kossan owner acquired more Kossan share in the open market in view of improved ASP and plant utilisation. Kossan owner commented the situation and market of glove market is in recovering stage, company expected to normalise profit in few quarters

Breaking news: Foreign funds continue accumulate Harta and Topglove from the expected ASP improvements, improve in book to order and plant capacity utilisation

Breaking news: Expert from institutions fund manager advise retailers not to trade contra or short term as the shorting of Harta and Topglove in an increasing trend due to the expected stock price will continue trading downward. This trend will continue till end of 2024 expectation

Breaking news: Expert from institutions fund manager advise retailers not to trade contra or short term as the shorting of Harta and Topglove in an increasing trend due to the expected stock price will continue trading downward. This trend will continue till end of 2024 expectation

Breaking news: All the world wide glove manufacturers start ramping up production after demand recovery. Most of the hospitals already used up the last year old stock, and start the new order purchasing, commented by one of the industry expert

Breaking news: Local institutions start to change position to short Inari in view long term profit target will be missed due to Apple chip alternatives strategy.

Breaking news: Local institutions fund's successful press down Harta and Topglove through the nagative news released from the media. Most of the contra player suffer tremendous loss from the intra day press down. Foreign fund's indicators showing continued buy in weak price.

Breaking news: Foreign funds continue buy more Harta and Topglove despite local institutional funds on short position

Breaking news: Local institutions continue short position to Harta and Topglove and progressively released bad news in the media

Breaking news: Most of the contra player suffered significant loss due to dumping to press down share price by institutional fund which is shorting position for Topglove and Harta. Nevertheless, foreign funds continue buying in weakness.

Breaking news: Foreign funds continue accumulating glove stock Topglove and Harta.

Breaking news: Local investment bank highly recommends to avoid glove stocks for Topglove and Harta due to extreme overcapacity.

Breaking news: Topglove world largest glove manufacturer break 0.9 resistance after foreign funds massive buy in view of positive recovery of glove demand and ASP.

Breaking news:
KUALA LUMPUR (Jan 4): Owing to a massive glut of glove supplies, glove stocks are unlikely to see a price uptick even though China is grappling with its biggest wave of Covid-19 infections following its sudden decision to ease draconian pandemic-related restrictions last month.

Analysts believe that China’s spike in cases will not improve the fundamentals of local glove stocks in the short term as the sector still faces industry-wide headwinds caused by an acute oversupply and margin compression, which has resulted in low average selling prices.

When contacted, Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said Malaysia's glove players will not benefit from the rapid spread of Covid-19 cases as China itself has sizeable glove production. Moreover, local glove players seldom sell their gloves to China because prices in China are even lower.

Hence, he expects the domestic glove industry to continue to face oversupply issues given their excessive inventory.

BIMB Securities Research analyst Nursuhaiza Hashim said it is still too early to gauge the outcome of China's latest move.

“It might have some knee-jerk reaction on share price if cases spike, but I am still wary to say the glove outlook will improve. Demand may slightly improve, but the current inventory level is enough to cater to [the market demand],” she added.

Nursuhaiza also expects the oversupply to remain as she believes the rising number of cases will not be as high as in the earlier phase of the pandemic because vast numbers of the population have been vaccinated.

Going forward, Nursuhaiza projects that the average selling price (ASP) for gloves will remain at the current level — averaging at US$17 (RM74.82) to US$20 per 1,000 pieces — given the stiff competition from Chinese glove makers as well as normalising demand due to the transition from pandemic to endemic.

As such, she expects earnings growth for the rubber glove sector to be lacklustre at least until the first half of 2023 (1H2023), as there are no signs of ASPs bottoming out, not to mention higher operating costs.

Malacca Securities Sdn Bhd head of research Loui Low Ley Yee said as much of the global population now is vaccinated compared to during the early stages of the outbreak in 2020, he does not foresee ASPs repeating the trend and peak of 2020.

However, he thinks the downside risks are now limited for the sector and recommends that investors relook at beaten-down glove stocks "as it is almost near the turning point".

“The [China] Covid-19 spike in cases might be the catalyst and we may accumulate now as it is downside risk limited. I think glove supply and demand will hit equilibrium this year and expect a rise in overall gloves ASP into 2023."

Both BIMB’s Nursuhaiza and Rakuten Trade’s Thong, however, are “underweight” on the sector as they believe it is not out of the woods yet.

Nursuhaiza said she maintained an “underweight” recommendation given the challenging operating environment which is expected to prolong in the foreseeable future. BIMB had “sell” calls on Hartalega Holdings Bhd (target price [TP]: RM1.70), Kossan Rubber Industries Bhd (TP: 95 sen), Top Glove Corp Bhd (TP: 58 sen) and Supermax Corp Bhd (TP: 60 sen).

On Wednesday (Jan 4), the Big Four were traded in the red. At 4pm, Top Glove shares were one sen or 1.16% lower at 85.5 sen, giving the company a market capitalisation of RM7.02 billion. Some 30.06 million shares were traded so far.

Hartalega fell three sen or 1.81% to RM1.63, which translates to a market capitalisation of 5.59 billion. Supermax dropped 1.5 sen or 1.76% to 83.5 sen, and Kossan declined three sen or 2.73% to RM1.07.

Some of their smaller counterparts were also trading lower with Careplus Group Bhd down three sen or 6.32% to 44.5 sen, while Comfort Gloves Bhd had dropped one sen or 2.11% to 46.5 sen.

Hextar Healthcare Bhd, previously known as Rubberex Corp Bhd, rose marginally by 0.5 sen or 1.37% to 37 sen.

Breaking news: China no more shortage of glove after the ramping up production quantity. ASP of glove remain positive grow due to the consistent demand.

Very excited to see 30...hehe

Breaking news: Harta loss strong support 1.70 due to profit taking from retailers. Fund analysis showing institutional funds still continue acquire Harta at this price range.

Breaking news: China under the pressure shortage of medical glove even the glove manufacturer running full capacity

Breaking news: Harta loss 1.70 support line due to under the pressure from retailers locked in profit after thr recent price surged

Breaking news: Retailers locked in the profit aftet recent surge of glove stock Topglove and Harta. Institutional funds continue buy in and top up more glove stocks in the portfolio in view of next year 2023 recovery of medical glove industry

Breaking news: Malaysia glove stock free fall after recent rise up

Breaking news: China facing shortage of medical glove due to rising usage of hospital and inventory at very critical level. China government urged to stop export the glove to oversea, all medical glove must priority to supply to local demand. ASP must in the reasonable increased, no burden to the hospital.

Breaking news: Institutional funds buy in glove stocks

Breaking news: Overall world wide glove market demand in recovery trend and improved ASP due to old glove inventory consumed and disposed due to expired product date code. China glove manufacturer already ramping up product to support high demand with higher ASP.

Breaking news: China major glove manufacturer increased the price of glove sale due to at current price is much burden to the financial and profitability. ASP price reduction mainly due to small and medium size glove manufacturer exit the market and clear the inventory.

Breaking news: Fund Managers rushing to rebuild glove portfolio after glove ASP price recover, raw material price decrease and recent China government urged for more inventory build up for glove. Shorting position required to review the strategy due to favourable recover business outlook for glove manufacturer.

Breaking news continue: China want the local glove manufacturer ensure sufficient inventory and reasonable ASP to support and ease the outbreak Covid19 cases.

Breaking news: China want the glove manufacturer supplier to ramp up the production to support the potential high demand and build up inventory from the rising China Covid19 cases.

Breaking news: Worldwide hospitals start to reorder the new glove inventory after a year of inventory usage!

Breaking news: China need more glove, local supply not enough required worldwide import!

Breaking news: China ban medicine and glove export due to high demand to avoid shortage!

Breaking news: Due to spike of cases, China possible to ban export of medical and related medical e.g glove

Breaking news: ASP (average selling price) for the glove is breakout from the bottom and now is recovered after small and medium size and new of glove manufacturer exit market after the ASP falled below the cost. To avoid the continuous loss, exit market is only the solution. This is favourable to the global big glove companies like Topglove and Harta.

Breaking news: investor big funds is starting change short to long!!!

Breaking news: investor big funds is starting change short to long!!!

Only suitable for contra, buy in morning then in afternoon.. this is easy atm machine

Big drop? Now they are discussing tp 10 possible or not... lol

Ya better all exit, rumours boss don't want glove business and want to sell, boss will take private, then sell to china man. Price not good, only 0.90 to 1.1. Nta 1.8, minority shareholders sure cry...but u don't have choice...take it or wait for close shop like japanese guy natsu??? comment