Why worry so much about China's rubber products?
Do you see many users of China's tyres on the road anywhere except China? When it comes to safety level & wear n tear use, China scores very low compared to Malaysia or Thailand.
So, ask yourself, would you buy China medical gloves or condoms or any China's rubber products?

topglove moving up now... results leak?

https://research.sginvestors.io/2020/06/malaysia-gloves-sector-maybank-kim-eng-research-2020-06-09.html

Cars & properties are cheaper now ... no sales tax, no stamp duty, no gains tax.
Gloves getting more and more pricey .......

Are you changing cars and upgrading your house ?

Some people think the 'Glove' market is over-priced .....

When you want to order medical gloves, they tell you to pay upfront, pay extra for price increase 30% and maybe get your gloves next year.

Same here, you want to buy glove shares, they ask you pay upfront to trading account, glove share price now costs more and maybe you can double your money next year.

So, which one is overheated and overvalued?

Investors are chasing high PE stocks in recent times, pushing stock prices higher, thanks to one 'think' only ----------> growth visibility

In a covid-destructive market, do the exact opposite: “If you buy stocks based on valuation, short low P/E stocks and buy high P/E ones,”. Steel, cement and infrastructure space are value traps.

Market disruptions in the economy have created conditions for the Glove bizness to grow bigger and bigger.........as airlines, tourism, leisure, malls, REITs, F&B biznesses struggle to adjust or just become smaller.

Some times majority shareholder sell shares for personal reason ....

Lau sells some Comfort shares...

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3055603


Lau buys some Leong Hup International share....
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3056010

He needs to take care of own family chicken business too ........ after 5 yrs as a partner together with CEO restructured and turnaround Integrated Rubber Corp (a PN17 company in 2015) to become COMFORT... that is now fighting-fit and can compete with the Big Four.

Ruberex n Careplus just came out from the ventilator room with new shareholders & fresh funds, so may take a year or two or three to join the team. Anyway, Malaysia Boleh .... World Best in Rubber Gloves n Covid Care

All Glove makers will earn more in the next several qtrs.
Yesterday I called Topglov to buy a container of nitrile gloves.
TPG Sales Mgr asked me to call next year

TOPGLOV recent qtr results:
Financial Qtr EPS
29 Feb 2020 4.52
30 Nov 2019 4.36
31 Aug 2019 3.13
31 May 2019 2.92
28 Feb 2019 4.14
30 Nov 2018 4.31

TOPGLOV qtr results (H1N1 flu season):
Financial Qtr EPS
31 May 2010 21.31
28 Feb 2010 23.54
30 Nov 2009 21.94
31 Aug 2009 19.18

https://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=7113

No need to think so much....
If H1N1 Swine Flu can increase EPS by 5X, just wonder what Covid can do ...
Just buy and go to the beach ......

Not to worry about any decline in demand for gloves,
as IMF has approved US $1.4 B. for Pakistan to buy PPE ...

https://www.imf.org/en/News/Articles/2020/04/16/pr20167-pakistan-imf-executive-board-approves-disbursement-to-address-covid-19

Since year 2018, Supermax, Topglov, Kossan and Harta have split shares 1:1, but Comfort has not done it yet.

Keep n Wait until Comfort splits its shares.... this is a long term play of more than 12 mths

Pakistan new cases of Covid has doubled from 2000 to 4000 in 1 week (June 3, 2020).
India has increased its new covid cases by 50% over past 2 weeks to 9600 cases/day (June 3, 2020)

https://www.aa.com.tr/en/asia-pacific/pakistan-doctors-on-hunger-strike-over-lack-of-ppe/1820374

Some people think that this 'goreng pisang' bizness is just 'goreng' only, but it is actually about the 'pisang'. There is an actual shortage of good Malaysian pisang ( China ones everthing's vinyl n fake).The demand is real, the product very good and the factories are super-efficient with proper accreditation

Just change the players, the game is still the same

https://www.thestar.com.my/business/business-news/2020/06/03/cap-on-glove-stocks

KYY assumed that the selling price of Nitrile glove at USD 3 cents per pc or RM 0.126
Total revenue of Nitrile gloves only for Comfort = 5.14 billion*RM 0.126 = 647.64 million ....

The selling price is underestimated or priced at ex-factory.
If you were to check Amazon.com, the retail price per box of nitrile gloves is about USD $33 for 200 pcs or US 17 cents per pc. Such markup needs a correction by glove manufacturers or better still improve its supply chains.

Big Boys already know the effect of Covid on glove earnings for next 6 qtrs.
Go n check TopGlove EPS in 2009-2010 (Swine Flu) when it was 21 sen/shr per qtr compared to latest past 6 qtrs of 2019 of just 4 sen/shr per qtr.

Wakarimasu ka?

The glove business & earnings have not changed.
Brokerage house just want to sanitise & clean house of the in-out and margin players.
If you want to be in the game, please put cash up front

In April, there were 1 M. cases on covid infection.... and many see a world shortage of medical gloves as demand has doubled.
Today on 30 May, we have more than 6 M. global cases of infection and half are hospitalised.

Yet, not many write write about shortage of gloves, only complaints about high valuation of glove shares ... why ?

If countries not affected by Covid start stocking up gloves/PPE, maybe you can start stocking glove shares too .... you don't just sit and wait....

....Conducive operating environment such as weaker ringgit, which has dropped 6% year to date, and lower raw material prices, are beneficial to glovemakers

WHO “pandemic” announcement, some countries which are not affected by Covid-19 to start stocking up inventories, pushing glove demand even higher.

We believe that Malaysia exporters will be able to benefit from it, building on their 62% market-share base

US on a collision course with China.....US sanctions are more serious than trade tariffs
Local rubber glove makers may gain from US-China cold war....

Companies are granted automatic 1 month extension for issuance of quarterly and annual reports, so Homeriz has taken advantage of this...

China exports & imports on hold because of CoV and slowdown in port movement.
Palm oil exports to China can be affected. China will export less furniture and Malaysia stand to gain from exports to US-EU-Japan. Furniture exports to Australia to accelerate as new homes are built to replace those destroyed by bush fires. These are positive signs for the furniture export bizness

Most Malaysian & Indon planters that has expanded bizness to Africa lose money because of Mgt difficulties e.g Sime, KLK, Wilmar, Wah Seong,etc.,especially in palm oil.

I doubt every much the expansion of grinding factory in Cote d'Ivoire and industrial choc factory in Germany will be profitable ventures in the future. Cocoa solids, cocoa butter and cocoa liquor are "commodities" and therefore such factories work best in Johor & Indonesia because of available & productive labour & machinery. There are too many cocoa & choc factories in Europe and also you need not grind in Africa as Mgt will be a major issue, just buy & send the beans to SE Asia.

Your next big choc market is in China & East Asia. Also countries like Japan's Royce can make better chocs than Germany or Spain.

I'm trying to figure out why so many sellers on Uzma today. Flushing out contra players may not be the only reason. I wonder whether Uzma is sueing the Korean Co to recover RM64M 'overpaid' amount .... is it to cover Mgt negligence on accounting or some forex loss or other kind of missing funds?

KYY golden rule 2:- Never buy down trend because you don’t know when the price will go higher than your cost for you to sell to make profit. Always buy up trend because you know the price will continue to go higher and you can sell to make money.

KYY golden rule: Among all the criteria, such as NTA, Cash flow, dividend yield etc, the most powerful catalyst to move share price is profit growth prospect. My golden rule is the company must have reported 2 consecutive quarter increasing profit and the projected P/E must be below 10. I choose P/E 10 to avoid unforeseen risk. By end of Oct, Homeriz will report high net profit for qtr4 and FY19 .... certainly some gain from Forex

https://alphapatterns.blogspot.com/2019/09/homeriz-on-move.html

Furniture companies in Muar should merge to stay relevant & to remain strong and share market info in US & EU.... Liihen and Homeriz have similar EPS & dividends with respect to its share price to be likely candidates..... bedroom sets and sofa sets can sell together...

I posted this in May 2017..... sure enough the mushrooms project continues to lose money...

Hevea is a good wood export bizness but makes wrong move to spend 10M on a mushroom project just because some guy thought they got a lot of rotting sawdust that they can make use of. Leave mushroom growing to the small farmers... they know best and stick to what you know best..i.e. boring wood.
If you follow what MYEG does (buying Eat Food & Drink KL) & Supermax spending 65M on contact lens project... sure investors will know you do not know what you are doing...

Trade outlook and exports positive for Malaysia....
http://www.mttshipping.com.my/july-2019/

https://www.bloomberg.com/news/articles/2019-08-06/u-s-slaps-duty-on-4-4-billion-of-china-cabinets-amid-trade-war

US imposed tariffs on China's furniture exports.... Vietnam is now under US's radar on transhipments...
https://www.youtube.com/watch?time_continue=49&v=fCAut_Gr-3E

If you have not invested in currencies like USD, Euro or Yen before the US-China trade war, then buy some Homeriz or Liihen for hedging. The trade war has move beyond soya bean to Huawei and now to currencies war.... Be Aware

EURMYR at 4.70

USDMYR at 4.20

USDMYR at 4.165

97 peratus revenue dalam USD (exports sahaja),
Pakai buruh pendatang yang murah (Vietnam pakai buruh negara),
Pakai kayu negeri sendiri yang bagu dan murah (Vietnam pakai kayu import),
Kulit harga lagi turun rendah,
USDringgit lagi naik hari hari (4.1285)

Rumah rumah Malaysia suka pakai perabot IKEA
IKEA selalu pakai kayu kertas - kena air sahaja sudah burok....

USDMYR at 4.125 is good for exporters.

https://www.thesundaily.my/business/us-china-trade-war-augurs-well-for-furniture-exporters-MA1121482

US-China trade war has benefited Vietnam & Malaysia furniture exports in 2019.
Prices of leather hides have decreased 13% over the past 3mths.
PH Govt has cut red tape & agencies to allow more foreign labour to the furniture manufacturers.
Dividends to shareholders are increasing in FY19 for furniture exporters.
Why run when punters are jumping jack flash in & out everyday?

Historically, the Jan-Mar quarter is the weakest qtr because of monsoon season on the South China Sea. If Dayang can earn eps 4 sen/shr will be an outstanding qtr to start FY2019

Dayang prefers to reward its long-term shareholders in different ways ... instead of dividend in specie like in FY2017, this time you get to own more Dayang shares at a 30% discount from this right issue in Jan2020. In FY2019, profits are estimated to be higher, so EPS will be the same or more.

Dayang's contract with SEA Hibiscus for 5 yrs (Nov2018 to Jul2023) was announced on 30/4/2019.
Ask why the delay in announcement after contract signed?
Maybe, too many contracts already announced in Q4, 2018.
So why worry about the results for the next few qtrs ?
Unless the Brent oil price collapse.

O&G Services sector doing well is Petronas and Malaysia's best hope for industrialisation rather than the Auto sector. Better not to keep bashing this industry that is slowly turning around.

There is now a heightened risk of supply disruptions from the critical Persian Gulf region. Raising tensions even higher, news flows of drone attacks on Saudi pipelines suggest the latest incident might be related to the conflict between Iran, US and Saudi Arabia. When crude oil prices are up, there will be more revenue for Malaysia Govt coffers to multiply to all...

https://oilprice.com/Energy/Oil-Prices/Oil-Rises-After-Drone-Attacks-On-Saudi-Infrastructure.html

Petra loss is Dayang's gain. Dayang's Chairman report in AR2018 " ...This is in sharp contrast to our competitors in the oil and gas industry, of which a number of established players continued to be mired in financial difficulties."

Kenanga's calls are sometimes unreliable... see Kenanga's call on OCK on 30Aug2017 for Market Perform of TP of RM1.05... over 14mths the shr price kept declining to its lowest 41 sen on 19Nov2018.... https://klse0.i3investor.com/blogs/kenangaresearch/131233.jsp

Again on 29Nov2018, Kenanga persisted to make same call of Market Outperform of TP or RM0.75. Now OCK's shr price languishing at RM0.50... https://klse0.i3investor.com/blogs/kenangaresearch/184289.jsp