Kossan is only glove stock in the FTSE Bursa Malaysia KLCI reserve list, after Harta & TopGlov.

https://www.thestar.com.my/business/business-news/2020/06/04/tm-klccp-included-in-klci-30-stock-list

One of the main reasons for the recent rally in big 4, is the successful listing of Sri Trang Glove Thailand (STGT) on 2nd July 20. The IPO priced at 34 TB & the current price as at 10th July 20 is 74.50TB, a very impressive increase of 119% since the IPO within 1 week's time. Ringgit 2b fund has been raised (30% of the total company shares).

This prices the company at 14.5b in ringgit currently. For simple comparison, Kossan price after the rally last week is priced at 15.8b.

Below is the simple comparison between STGT and Kossan on other aspects:

a) annual production capacity (year 2019): 27b (STGT) vs 32b (Kossan)
b) % of nitrile glove: 35% (STGT) vs 80% (Kossan)
c) Revenue 1Q20: 3,761m TB, or 512m MYR equivalent vs 611m (Kossan)
d) 1Q20 profit: 421.89m TB, or 57.5m MYR equivalent vs 82.5m (Kossan)

In short, there is still huge investment demand in glove stocks globally. The glove stocks in Malaysia are fairly price with global peers.

https://www.thaienquirer.com/15100/stgt-listing-is-full-of-potential-amid-rubber-glove-boom-during-coronavirus-pandemic/

http://stgt.listedcompany.com/misc/mdna/20200701-stgt-mdna-1q2020-en.pdf

The huge securities trading value will be partly offset by the significant drop in derivatives trading. My high level guess is 10% gross profit up compared to last quarter.

Top glove last quarter result ended May 20 also only up 5% ASP. This mainly due to earlier order prior to the peak of the Covide in end of Mar/ Apr (order lead time of 45 - 60 days pre-Covid). The result is already good enough. :-)

Just some points to add:
1) Plan 19 will be completed in end July/ August 20. Production will up by 15% to 20%,
2) Material for nitrile glove, ie. butadiene is at historical low in Jun, in tandem with the raw material (petroleum) price, and will slowly rebound,
3) The new plant purchased next door in Klang will be splited in 2 phases (5 billion pieces), & should contribute to production as early as end of this year (1st phase of 6 production lines out of 16), by tapping on their factory's infrastructure.

Bonus issue normally announced together with the quarter result.

Bonus should be in the card this year, to beat QL market cap & secure FBM KLCI component stocks by year end. The difference is only 1b, 6.75% based on yesterday closing price.

Supermx hits RM13 & Kossan hits RM12++. Welldone!

CIMB just revised TP to RM13.80 yesterday. Think they going to revise again if the share price hits this TP sooner than they expected.

They are always 2 side of the coins, pros vs cons. Poison for you might be the medicine for many others. Many ppl chase for high risk high return, but for many of us here, we are happy with low risk with medium return. Something that you dont how know to appreciate now.

Uncle Koon mentioned Supermax will potentially included as FBM KLCI component stock index by year end. However Supermax is not in the reserve list at the first place. Instead Kossan has the biggest chance among the reserve candidates, ie Kossan, QL Resources, F&N, Westport & Gamuda.

Tomorrow Kossan AGM. Let hope for some good news.

Kossan is the most value buy among all glove stocks. No need to doubt.

They think they are... Only seasoned investors experience enough to know what’s going to happen next, & next after next. Let the profit & share price speak itself.

Ask yourself a question, if you can choose only one glove stock to ALL IN at current price, which will you choose? Only ppl who invested in Kossan now will know what I meant.

Noobie33 Yes, the exercise price be adjusted accordingly.

3-ply-surgical mask before Covid RM10 per box (50 pieces). Now ppl say it 'drops' to RM18. The manufacturers are still very happy to sell at RM18, cos ASP increase 80%. Simple maths will tell you how many folds of profit they still earn even based on current price.

Factually inaccurate on ASP hike impact to profitability. Maybe mix up Harta with Top Glove?

Defence has to start from here.

龙头股一荣俱荣。。。反之亦然. The sharks attack the weakness.

TG (Spore) daily trading value in ringgit term is not even 5% of Malaysia market. Not really a good reference...

I’m not sure about IB. For commercial banks, they invest into investment grade corporate bonds. Top glove convertible band is one of it. There is a clean up call option in the Top Glove convertible bond, ie if the total outstanding bonds In the market less than 10% of the original issued principal amount, the issuer has the right to early redeem all the bonds.

With the current trend of bond conversion due to high returns (200% even with current share price compared with original dividend yield of 2%), investors will convert the bond early to avoid to be caught as the last 10% under the clean up call).

Tickets in the market will increase. If IB intends to short this counter, this is a better way.

i sold all my topglove shares but still hold tight with my kossan.

Reasons? Cos 15% margin expansion Top Glove (from 10% to 25% on gross margin) breakdown is as follows:

a) 5% on weakening of MYR
b) 5% on cost saving from raw material, especially on nitrile price, and

c) 5% on ASP increase


Factors (a) & (b) is the common factors enjoys by all glove stocks, & most important, its sustainable. These 2 factors enough to bring Kossan next quarter profit to be double.

Coz it’s under value still. The cheapest among all glove stocks.

Definitely big players have higher negotiation power. ASP will follow the market leader, TG. It’s an efficient market anyway. Just a matter of time.

A pair of gloves only costs USD $0.06 x 2, MYR equivalent 50 sen. Still reasonable & affordable.

All the investment bankers after practised cut their own hair once thought they are the expert hair stylist d

Hope someone don’t lose his job due to this ‘brilliant’ idea to cap the share price value. Especially it is proven by the solid earnings, eg Supermax. Most the margin acct holders will redeem their financing to other banks.

I’m more optimistic about nitrile glove vs latex stocks as recommended by most analysts. Kossan is my first choice. 1Q result should be out tomorrow. Hope today Supermx result is above expectations

Sia lang?!

Another KYY related stock. Look at last year annual report.

RM200m is a ‘gift’ given by Airbus. It’s up to you to spend it on your luxury hobbies, or declared & spent the money on the companies, especially when the company did not do well at that time.

成龙说他犯了全男人都会犯的错。如果他们都知道有被抓的一天，试问有谁敢犯？难道他们都不懂家庭比外边的野花更重要？

有没罪老马说了算。就等亚航买马航

In corporate world, no one is irreplaceable, including the founder cum CEO.

I feel so sorry for you cause you’re more famous now!

I see better chance for him to buy Khazanah’s stake in MAS. Less issues on the pricing & staff union.

He is just another greedy businessman. Still remember he got discount for the private placement given to him when Airasia share price was cheap & don’t really need the money. Subsequently, he sold off the fleet of airplanes at premium & paid back the shareholders with special dividend. He pocket few hundred million easy money by doing this.

Another reason of the cheap petrochemical price is due to raw material using by products of shale gas. Plant using oil is hard to compete.

The feedstock of the new plant is oil compared with their existing plant which use gas. Margin is much thinner. Hence, the profit will be volatile depend highly on oil price movement.

The outlook is bad for mid term (2-3 years). Petrochemical price keep dropping due to excess supply & drop in raw material price.

The real FA show will begin soon. Now is just the warm up.

Sellers know it too, reluctant to sell... Investors are looking at paper packaging stocks. Box pack is the underdog

Hopefully good year is coming with fantastic result for coming quarters!! :-)

Finally the sellers are back.

Can-one just announced that the company has received tranche 2 amount payment consists of RM153.5m principal amount plus RM2.5m interest.

It means the minimal selling price of F&B Nutrition is RM900m & the company has earned other income of RM2.5m. Also, additional interest saving of RM1m per quarter from this RM153.5 m received).

The remaining balance of tranche 2 amount will be known & be paid soon in 1Q2020 after audited the financial statement.

Hi Mr Tan KW, my picks are as follows


1. BOXPAK 30%
2. CANONE 20%
3. CEPAT 10%
4. NTPM 30%
5. SCGM 10%


THANK YOU

Sometimes it’s good to shake out the weak hands... Only FA knows what shares are they buying into & will wait till the reaping time comes

The sale of F&B Nutrition was completed in early Oct 19. The profit will be booked in 4Q19. It will be fantastic.

Its a waiting game. Management has logged in higher raw material price for a longer period (higher than year 2018). Drop in paper pulps & waster paper is yet to reflect in the account.