I think market very pessimistic now, I think need to patience to wait the market clearance 1st

I think market very pessimistic now, I think need to patience to wait the market clearance 1st


""Nasdaq falls 1% Wednesday to close in correction territory, off 10% from its November record""


https://www.cnbc.com/2022/01/18/stock-market-futures-open-to-close-news.html

I think market very pessimistic now, I think need to patience to wait the market clearance 1st


""Nasdaq falls 1% Wednesday to close in correction territory, off 10% from its November record""


https://www.cnbc.com/2022/01/18/stock-market-futures-open-to-close-news.html

Glove ASPs to continue decline in 1H 2022, says HLIB Research

KUALA LUMPUR: The average selling price (ASP) of gloves is expected to continue declining in the first half of 2022, albeit at a slower rate of 5 per cent month-on-month (MoM), compared to 10 per cent MoM previously.

Hong Leong Investment Bank Bhd (HLIB Research) said glove prices had fallen closer to pre-Covid levels, with the current ASP being US$25-35 per thousand pieces compared to the pre-pandemic ASP of US$21 per thousand pieces.

"We also note that the pricing difference between the US market and European Union (EU) market is also narrowing, at US$5 the difference now, as opposed to a US$10 gap earlier.

"In our view, glove prices are likely to reach pre-Covid levels by the second half (Q2) of 2022," the bank-backed research firm said in a note today.

Glove ASPs have been on a downtrend since mid-2021, following a mass rollout of vaccination programmes in major glove consuming countries, as the better vaccination coverage has greatly alleviated buyers' urgency to stock up on gloves.

The spike in glove demand previously has resulted in nitrile butadiene rubber (NBR) latex prices to more than double to a high of US$2.40 per kg in early-2021 but has since tapered off, in tandem with the weaker glove demand.

NBR latex prices are expected to reach pre-Covid levels of US$1.10 per kg in early-2022, as glove demand continues to normalise, and additional supply capacity kicks in.

Natural rubber (NR) latex prices, however, are expected to stay elevated in 1H 2022, given the La Nina phenomenon expected in January 2022, followed by wintering period that typically lasts from February to May.

HLIB noted that with ASPs declining faster than raw material price, coupled with higher operating costs stemming from better social compliance practices and

stricter standard operating procedures (SOP), margins for the glove makers are expected to compress further.

Not to mention that the impending price war arising from Chinese glove makers attempting to win market share could also exacerbate the situation further.

"Nevertheless, we are comforted by the fact that the glove makers under our coverage have accumulated a large war chest during the upcycle, and the strong balance sheet should help the glove producers to better weather through this difficult time," the research firm said.

Further, HLIB Research said amidst the falling ASPs, glove buyers have refrained from stocking up on gloves to avoid locking in purchases at high prices.

"However, with glove prices slowly approaching pre-Covid levels, we think that restocking activities could gradually resume in 1H 2022.

"That said, we expect utilisation rate for the glove producers to remain below pre-Covid levels of 80-85 per cent in 1H 2022, due to overall softening in demand," the firm noted.

HLIB Research maintains a Neutral call for the sector as the current headwinds faced by the glove makers are unlikely to dissipate in the near future.

"We expect the operating environment for glove makers to remain challenging in 1H 2022.

"However, a strong cash position should help the glove makers to navigate through these challenging times and withstand any impending price wars that might come their way," the research firm said.

Glove ASPs to continue decline in 1H 2022, says HLIB Research

KUALA LUMPUR: The average selling price (ASP) of gloves is expected to continue declining in the first half of 2022, albeit at a slower rate of 5 per cent month-on-month (MoM), compared to 10 per cent MoM previously.

Hong Leong Investment Bank Bhd (HLIB Research) said glove prices had fallen closer to pre-Covid levels, with the current ASP being US$25-35 per thousand pieces compared to the pre-pandemic ASP of US$21 per thousand pieces.

"We also note that the pricing difference between the US market and European Union (EU) market is also narrowing, at US$5 the difference now, as opposed to a US$10 gap earlier.

"In our view, glove prices are likely to reach pre-Covid levels by the second half (Q2) of 2022," the bank-backed research firm said in a note today.

Glove ASPs have been on a downtrend since mid-2021, following a mass rollout of vaccination programmes in major glove consuming countries, as the better vaccination coverage has greatly alleviated buyers' urgency to stock up on gloves.

The spike in glove demand previously has resulted in nitrile butadiene rubber (NBR) latex prices to more than double to a high of US$2.40 per kg in early-2021 but has since tapered off, in tandem with the weaker glove demand.

NBR latex prices are expected to reach pre-Covid levels of US$1.10 per kg in early-2022, as glove demand continues to normalise, and additional supply capacity kicks in.

Natural rubber (NR) latex prices, however, are expected to stay elevated in 1H 2022, given the La Nina phenomenon expected in January 2022, followed by wintering period that typically lasts from February to May.

HLIB noted that with ASPs declining faster than raw material price, coupled with higher operating costs stemming from better social compliance practices and

stricter standard operating procedures (SOP), margins for the glove makers are expected to compress further.

Not to mention that the impending price war arising from Chinese glove makers attempting to win market share could also exacerbate the situation further.

"Nevertheless, we are comforted by the fact that the glove makers under our coverage have accumulated a large war chest during the upcycle, and the strong balance sheet should help the glove producers to better weather through this difficult time," the research firm said.

Further, HLIB Research said amidst the falling ASPs, glove buyers have refrained from stocking up on gloves to avoid locking in purchases at high prices.

"However, with glove prices slowly approaching pre-Covid levels, we think that restocking activities could gradually resume in 1H 2022.

"That said, we expect utilisation rate for the glove producers to remain below pre-Covid levels of 80-85 per cent in 1H 2022, due to overall softening in demand," the firm noted.

HLIB Research maintains a Neutral call for the sector as the current headwinds faced by the glove makers are unlikely to dissipate in the near future.

"We expect the operating environment for glove makers to remain challenging in 1H 2022.

"However, a strong cash position should help the glove makers to navigate through these challenging times and withstand any impending price wars that might come their way," the research firm said.

Glove ASPs to continue decline in 1H 2022, says HLIB Research

KUALA LUMPUR: The average selling price (ASP) of gloves is expected to continue declining in the first half of 2022, albeit at a slower rate of 5 per cent month-on-month (MoM), compared to 10 per cent MoM previously.

Hong Leong Investment Bank Bhd (HLIB Research) said glove prices had fallen closer to pre-Covid levels, with the current ASP being US$25-35 per thousand pieces compared to the pre-pandemic ASP of US$21 per thousand pieces.

"We also note that the pricing difference between the US market and European Union (EU) market is also narrowing, at US$5 the difference now, as opposed to a US$10 gap earlier.

"In our view, glove prices are likely to reach pre-Covid levels by the second half (Q2) of 2022," the bank-backed research firm said in a note today.

Glove ASPs have been on a downtrend since mid-2021, following a mass rollout of vaccination programmes in major glove consuming countries, as the better vaccination coverage has greatly alleviated buyers' urgency to stock up on gloves.

The spike in glove demand previously has resulted in nitrile butadiene rubber (NBR) latex prices to more than double to a high of US$2.40 per kg in early-2021 but has since tapered off, in tandem with the weaker glove demand.

NBR latex prices are expected to reach pre-Covid levels of US$1.10 per kg in early-2022, as glove demand continues to normalise, and additional supply capacity kicks in.

Natural rubber (NR) latex prices, however, are expected to stay elevated in 1H 2022, given the La Nina phenomenon expected in January 2022, followed by wintering period that typically lasts from February to May.

HLIB noted that with ASPs declining faster than raw material price, coupled with higher operating costs stemming from better social compliance practices and

stricter standard operating procedures (SOP), margins for the glove makers are expected to compress further.

Not to mention that the impending price war arising from Chinese glove makers attempting to win market share could also exacerbate the situation further.

"Nevertheless, we are comforted by the fact that the glove makers under our coverage have accumulated a large war chest during the upcycle, and the strong balance sheet should help the glove producers to better weather through this difficult time," the research firm said.

Further, HLIB Research said amidst the falling ASPs, glove buyers have refrained from stocking up on gloves to avoid locking in purchases at high prices.

"However, with glove prices slowly approaching pre-Covid levels, we think that restocking activities could gradually resume in 1H 2022.

"That said, we expect utilisation rate for the glove producers to remain below pre-Covid levels of 80-85 per cent in 1H 2022, due to overall softening in demand," the firm noted.

HLIB Research maintains a Neutral call for the sector as the current headwinds faced by the glove makers are unlikely to dissipate in the near future.

"We expect the operating environment for glove makers to remain challenging in 1H 2022.

"However, a strong cash position should help the glove makers to navigate through these challenging times and withstand any impending price wars that might come their way," the research firm said.

Glove ASPs to continue decline in 1H 2022, says HLIB Research

KUALA LUMPUR: The average selling price (ASP) of gloves is expected to continue declining in the first half of 2022, albeit at a slower rate of 5 per cent month-on-month (MoM), compared to 10 per cent MoM previously.

Hong Leong Investment Bank Bhd (HLIB Research) said glove prices had fallen closer to pre-Covid levels, with the current ASP being US$25-35 per thousand pieces compared to the pre-pandemic ASP of US$21 per thousand pieces.

"We also note that the pricing difference between the US market and European Union (EU) market is also narrowing, at US$5 the difference now, as opposed to a US$10 gap earlier.

"In our view, glove prices are likely to reach pre-Covid levels by the second half (Q2) of 2022," the bank-backed research firm said in a note today.

Glove ASPs have been on a downtrend since mid-2021, following a mass rollout of vaccination programmes in major glove consuming countries, as the better vaccination coverage has greatly alleviated buyers' urgency to stock up on gloves.

The spike in glove demand previously has resulted in nitrile butadiene rubber (NBR) latex prices to more than double to a high of US$2.40 per kg in early-2021 but has since tapered off, in tandem with the weaker glove demand.

NBR latex prices are expected to reach pre-Covid levels of US$1.10 per kg in early-2022, as glove demand continues to normalise, and additional supply capacity kicks in.

Natural rubber (NR) latex prices, however, are expected to stay elevated in 1H 2022, given the La Nina phenomenon expected in January 2022, followed by wintering period that typically lasts from February to May.

HLIB noted that with ASPs declining faster than raw material price, coupled with higher operating costs stemming from better social compliance practices and

stricter standard operating procedures (SOP), margins for the glove makers are expected to compress further.

Not to mention that the impending price war arising from Chinese glove makers attempting to win market share could also exacerbate the situation further.

"Nevertheless, we are comforted by the fact that the glove makers under our coverage have accumulated a large war chest during the upcycle, and the strong balance sheet should help the glove producers to better weather through this difficult time," the research firm said.

Further, HLIB Research said amidst the falling ASPs, glove buyers have refrained from stocking up on gloves to avoid locking in purchases at high prices.

"However, with glove prices slowly approaching pre-Covid levels, we think that restocking activities could gradually resume in 1H 2022.

"That said, we expect utilisation rate for the glove producers to remain below pre-Covid levels of 80-85 per cent in 1H 2022, due to overall softening in demand," the firm noted.

HLIB Research maintains a Neutral call for the sector as the current headwinds faced by the glove makers are unlikely to dissipate in the near future.

"We expect the operating environment for glove makers to remain challenging in 1H 2022.

"However, a strong cash position should help the glove makers to navigate through these challenging times and withstand any impending price wars that might come their way," the research firm said.

Malaysia’s glove sector outlook: Not the time yet for bottom fishing

WITH average selling prices (ASPs) having yet to find a bottom, the time may not yet be ripe to bottom fish glove stocks.

Further expecting interest in COVID-19 related stocks such as gloves to wane as the global vaccination rate rises has prompted Maybank IB Research to downgrade the outlook of the glove sector to “negative” (from “neutral” previously).

“We believe strong balance sheets and low operating costs are important factors that will allow glove makers to weather through the downturn and provide some financial cushion to the imminent price war,” opined analyst Wong Wei Sum in a glove sector update.

“Fortunately, the glove makers under our coverage i.e. Top Glove Corp Bhd (RM2.05 bil), Hartalega Holdings Bhd (RM3.08 bil) and Kossan Rubber Industries Bhd (RM1.64 bil) have accumulated sizeable amounts of cash during the peak cycle and are now in net cash positions.”

In Maybank IB Research’s view, the industry’s ASP which is declining fast could hit pre-COVID levels by mid-2022, ie another -42% from current level of about US$40/1,000 glove pieces in September.

“With the stiff competition from China, we believe the Malaysian glove sector is experiencing a structural change and the oversupply situation could potentially extend longer than the typical downcycle of six to nine months,” the research house pointed out.

However, Maybank IB Research expects the strong balance sheet to be able to self-fund the glove maker’s expansion capacity for the next few years.

“Our concern would be with new entrants that rushed into the glove sector during the peak cycle in end 2020,” noted the research house.

“In order to get their factories ready within very short period, we understand that these new entrants paid premium pricing for their plants, installation works, machineries, raw materials and even staffs; hence, high operating costs, making them less competitive in pricing.”

Company-wise, Maybank IB Research has downgraded Hartalega and and Kossan to “sell” (from “hold” previously) with lower target prices of RM3.99 (from RM6.74 previously) and RM1.86 (from RM3.16 previously) respectively. At the same time, it maintained its “sell” call on Top Glove with an unchanged target price of RM1.68.

Malaysia’s glove sector outlook: Not the time yet for bottom fishing

WITH average selling prices (ASPs) having yet to find a bottom, the time may not yet be ripe to bottom fish glove stocks.

Further expecting interest in COVID-19 related stocks such as gloves to wane as the global vaccination rate rises has prompted Maybank IB Research to downgrade the outlook of the glove sector to “negative” (from “neutral” previously).

“We believe strong balance sheets and low operating costs are important factors that will allow glove makers to weather through the downturn and provide some financial cushion to the imminent price war,” opined analyst Wong Wei Sum in a glove sector update.

“Fortunately, the glove makers under our coverage i.e. Top Glove Corp Bhd (RM2.05 bil), Hartalega Holdings Bhd (RM3.08 bil) and Kossan Rubber Industries Bhd (RM1.64 bil) have accumulated sizeable amounts of cash during the peak cycle and are now in net cash positions.”

In Maybank IB Research’s view, the industry’s ASP which is declining fast could hit pre-COVID levels by mid-2022, ie another -42% from current level of about US$40/1,000 glove pieces in September.

“With the stiff competition from China, we believe the Malaysian glove sector is experiencing a structural change and the oversupply situation could potentially extend longer than the typical downcycle of six to nine months,” the research house pointed out.

However, Maybank IB Research expects the strong balance sheet to be able to self-fund the glove maker’s expansion capacity for the next few years.

“Our concern would be with new entrants that rushed into the glove sector during the peak cycle in end 2020,” noted the research house.

“In order to get their factories ready within very short period, we understand that these new entrants paid premium pricing for their plants, installation works, machineries, raw materials and even staffs; hence, high operating costs, making them less competitive in pricing.”

Company-wise, Maybank IB Research has downgraded Hartalega and and Kossan to “sell” (from “hold” previously) with lower target prices of RM3.99 (from RM6.74 previously) and RM1.86 (from RM3.16 previously) respectively. At the same time, it maintained its “sell” call on Top Glove with an unchanged target price of RM1.68.

Malaysia’s glove sector outlook: Not the time yet for bottom fishing

WITH average selling prices (ASPs) having yet to find a bottom, the time may not yet be ripe to bottom fish glove stocks.

Further expecting interest in COVID-19 related stocks such as gloves to wane as the global vaccination rate rises has prompted Maybank IB Research to downgrade the outlook of the glove sector to “negative” (from “neutral” previously).

“We believe strong balance sheets and low operating costs are important factors that will allow glove makers to weather through the downturn and provide some financial cushion to the imminent price war,” opined analyst Wong Wei Sum in a glove sector update.

“Fortunately, the glove makers under our coverage i.e. Top Glove Corp Bhd (RM2.05 bil), Hartalega Holdings Bhd (RM3.08 bil) and Kossan Rubber Industries Bhd (RM1.64 bil) have accumulated sizeable amounts of cash during the peak cycle and are now in net cash positions.”

In Maybank IB Research’s view, the industry’s ASP which is declining fast could hit pre-COVID levels by mid-2022, ie another -42% from current level of about US$40/1,000 glove pieces in September.

“With the stiff competition from China, we believe the Malaysian glove sector is experiencing a structural change and the oversupply situation could potentially extend longer than the typical downcycle of six to nine months,” the research house pointed out.

However, Maybank IB Research expects the strong balance sheet to be able to self-fund the glove maker’s expansion capacity for the next few years.

“Our concern would be with new entrants that rushed into the glove sector during the peak cycle in end 2020,” noted the research house.

“In order to get their factories ready within very short period, we understand that these new entrants paid premium pricing for their plants, installation works, machineries, raw materials and even staffs; hence, high operating costs, making them less competitive in pricing.”

Company-wise, Maybank IB Research has downgraded Hartalega and and Kossan to “sell” (from “hold” previously) with lower target prices of RM3.99 (from RM6.74 previously) and RM1.86 (from RM3.16 previously) respectively. At the same time, it maintained its “sell” call on Top Glove with an unchanged target price of RM1.68.

Malaysia’s glove sector outlook: Not the time yet for bottom fishing

WITH average selling prices (ASPs) having yet to find a bottom, the time may not yet be ripe to bottom fish glove stocks.

Further expecting interest in COVID-19 related stocks such as gloves to wane as the global vaccination rate rises has prompted Maybank IB Research to downgrade the outlook of the glove sector to “negative” (from “neutral” previously).

“We believe strong balance sheets and low operating costs are important factors that will allow glove makers to weather through the downturn and provide some financial cushion to the imminent price war,” opined analyst Wong Wei Sum in a glove sector update.

“Fortunately, the glove makers under our coverage i.e. Top Glove Corp Bhd (RM2.05 bil), Hartalega Holdings Bhd (RM3.08 bil) and Kossan Rubber Industries Bhd (RM1.64 bil) have accumulated sizeable amounts of cash during the peak cycle and are now in net cash positions.”

In Maybank IB Research’s view, the industry’s ASP which is declining fast could hit pre-COVID levels by mid-2022, ie another -42% from current level of about US$40/1,000 glove pieces in September.

“With the stiff competition from China, we believe the Malaysian glove sector is experiencing a structural change and the oversupply situation could potentially extend longer than the typical downcycle of six to nine months,” the research house pointed out.

However, Maybank IB Research expects the strong balance sheet to be able to self-fund the glove maker’s expansion capacity for the next few years.

“Our concern would be with new entrants that rushed into the glove sector during the peak cycle in end 2020,” noted the research house.

“In order to get their factories ready within very short period, we understand that these new entrants paid premium pricing for their plants, installation works, machineries, raw materials and even staffs; hence, high operating costs, making them less competitive in pricing.”

Company-wise, Maybank IB Research has downgraded Hartalega and and Kossan to “sell” (from “hold” previously) with lower target prices of RM3.99 (from RM6.74 previously) and RM1.86 (from RM3.16 previously) respectively. At the same time, it maintained its “sell” call on Top Glove with an unchanged target price of RM1.68.

Malaysian Glove Makers Face Challenge From China, Hartalega Says

China could emerge as a major force in the global rubber gloves market and threaten the dominance of Malaysian companies in the long term, said Kuan Mun Leong, CEO of Hartalega Holdings Bhd., one of Malaysia’s biggest glove producers.

Chinese glove makers are expected to contribute 23% of the total share of the world’s glove supply by 2022 from an estimated 16% currently based on their announced capacity expansion plans, the Hartalega CEO said on Tuesday. Malaysia’s market share is expected to shrink to 60% by 2022 from 67% currently, he added.

The Chinese companies have been meeting rising demand from the U.S and Europe amid production disruptions caused by a flare-up of the coronavirus pandemic in Malaysia, the world’s largest rubber glove supplier.

“Like it or not, China is now a force to reckon and is a competition we should recognize,” Kuan said in a virtual briefing after the company’s annual shareholders meeting. “I don’t see Malaysia will lose leadership position in the near-and-medium term,” the CEO said, adding he’s unsure if the country can keep its dominance in the long term.

Hartalega is currently operating only at 70% of its capacity utilizing 60% of its workforce, he said. Operating at full capacity would require the company to test all its 9,000 workers for Covid-19 every two weeks, which Kuan described as a major disruption.

Malaysian Glove Makers Face Challenge From China, Hartalega Says

China could emerge as a major force in the global rubber gloves market and threaten the dominance of Malaysian companies in the long term, said Kuan Mun Leong, CEO of Hartalega Holdings Bhd., one of Malaysia’s biggest glove producers.

Chinese glove makers are expected to contribute 23% of the total share of the world’s glove supply by 2022 from an estimated 16% currently based on their announced capacity expansion plans, the Hartalega CEO said on Tuesday. Malaysia’s market share is expected to shrink to 60% by 2022 from 67% currently, he added.

The Chinese companies have been meeting rising demand from the U.S and Europe amid production disruptions caused by a flare-up of the coronavirus pandemic in Malaysia, the world’s largest rubber glove supplier.

“Like it or not, China is now a force to reckon and is a competition we should recognize,” Kuan said in a virtual briefing after the company’s annual shareholders meeting. “I don’t see Malaysia will lose leadership position in the near-and-medium term,” the CEO said, adding he’s unsure if the country can keep its dominance in the long term.

Hartalega is currently operating only at 70% of its capacity utilizing 60% of its workforce, he said. Operating at full capacity would require the company to test all its 9,000 workers for Covid-19 every two weeks, which Kuan described as a major disruption.

Malaysian Glove Makers Face Challenge From China, Hartalega Says

China could emerge as a major force in the global rubber gloves market and threaten the dominance of Malaysian companies in the long term, said Kuan Mun Leong, CEO of Hartalega Holdings Bhd., one of Malaysia’s biggest glove producers.

Chinese glove makers are expected to contribute 23% of the total share of the world’s glove supply by 2022 from an estimated 16% currently based on their announced capacity expansion plans, the Hartalega CEO said on Tuesday. Malaysia’s market share is expected to shrink to 60% by 2022 from 67% currently, he added.

The Chinese companies have been meeting rising demand from the U.S and Europe amid production disruptions caused by a flare-up of the coronavirus pandemic in Malaysia, the world’s largest rubber glove supplier.

“Like it or not, China is now a force to reckon and is a competition we should recognize,” Kuan said in a virtual briefing after the company’s annual shareholders meeting. “I don’t see Malaysia will lose leadership position in the near-and-medium term,” the CEO said, adding he’s unsure if the country can keep its dominance in the long term.

Hartalega is currently operating only at 70% of its capacity utilizing 60% of its workforce, he said. Operating at full capacity would require the company to test all its 9,000 workers for Covid-19 every two weeks, which Kuan described as a major disruption.

Malaysian Glove Makers Face Challenge From China, Hartalega Says

China could emerge as a major force in the global rubber gloves market and threaten the dominance of Malaysian companies in the long term, said Kuan Mun Leong, CEO of Hartalega Holdings Bhd., one of Malaysia’s biggest glove producers.

Chinese glove makers are expected to contribute 23% of the total share of the world’s glove supply by 2022 from an estimated 16% currently based on their announced capacity expansion plans, the Hartalega CEO said on Tuesday. Malaysia’s market share is expected to shrink to 60% by 2022 from 67% currently, he added.

The Chinese companies have been meeting rising demand from the U.S and Europe amid production disruptions caused by a flare-up of the coronavirus pandemic in Malaysia, the world’s largest rubber glove supplier.

“Like it or not, China is now a force to reckon and is a competition we should recognize,” Kuan said in a virtual briefing after the company’s annual shareholders meeting. “I don’t see Malaysia will lose leadership position in the near-and-medium term,” the CEO said, adding he’s unsure if the country can keep its dominance in the long term.

Hartalega is currently operating only at 70% of its capacity utilizing 60% of its workforce, he said. Operating at full capacity would require the company to test all its 9,000 workers for Covid-19 every two weeks, which Kuan described as a major disruption.

must patiently keep it for next 12 months, can see the trading price by between 22 to 26 cents since new business will bring the company future growth

finally the news come true after sealing the agreement.

https://www.thesundaily.my/business/bcm-hong-kong-s-rloop-get-rm845m-order-for-covid-attenuation-devices-FA8121887

BCM, Hong Kong’s rLoop get RM845m order for Covid attenuation devices

PETALING JAYA: BCM Alliance Bhd via its wholly owned subsidiary BC Medicare Sdn Bhd and Hong Kong’s rLoop Limited have received a letter of offer from China’s Euro-China Technology Achievement Transformation (Tianjin) Co Ltd (EC Tech) to purchase 100,000 units of virus attenuation devices with a total sale of US$200 million (RM845 million).

This virus attenuation or reduction devices use photon mediated electrons and emitters under rLoop’s brand name “rGuard” in the global market except for India. The product can disable the coronavirus in enclosed spaces with up to 99.9% efficacy – enabling schools, colleges, homes and businesses like hospitals, hotels, offices, restaurants, auditoriums, transportation, retail and airports to get back to normal and serve people in a safe environment.

At US$2,000 per unit, the price will include royalties, installation & debugging, operations & technology information training, data monitoring and maintenance services.

BC Medicare is in the business of designing, developing, manufacturing, testing, configuring, assembling, packaging and shipping electronic assemblies and systems, whereas rLoop has the intellectual property rights and licensing right for designing, manufacturing (including contract manufacturing), developing, distributing, marketing and selling of these products.

On the same day, rLoop has engaged BCM Alliance via a memorandum of understanding (MoU) to manufacture, test, configure, assemble, pack and/or ship the virus attenuation or reduction devices as well as provision of manufacturing services for the product. A separate OEM manufacturing agreement between rLoop and BCM is underway. BCM will also be responsible for providing training to EC Tech on the functions and operations of the goods.

BCM Alliance executive director Hoo Swee Guan said the rGuard can be installed in all indoor areas and it has huge market potential.

“BCM is also authorised to market the products to global markets, except India. Fortunately, we receives a big order of US$200 million before we even started, and the future sales volume will bring considerable turnover to our group,” Hoo added.

All three parties would be negotiating towards a definitive agreement to formalise this significant order. The tri-partite definitive agreement will contain detailed terms in the following aspects as well as such other terms and conditions that are standard for transactions of this nature and acceptable to the signing parties – such as specifications and packaging, quantity (number of shipments and quantity of each shipment), price terms, delivery schedule, destination, payment terms, quality and inspection (return policy), installation & debugging, training, warranty and maintenance.

can bring revenue in 2022 by US$ 200 mil which is equivalent to Rm 840 mil

future company growth very bright

MANUFACTURING AGREEMENT BETWEEN BC MEDICARE SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF BCM AND RLOOP LIMITED AND EURO-CHINA TECHNOLOGY ACHIEVEMENT TRANSFORMATION (TIANJIN) CO., LTD.


SALIENT TERMS OF THE AGREEMENT

3.1 Transaction

The details of the transaction are as below:-
(a) rLoop has engaged BC Medicare to manufacture, test, configure, assemble, pack and/or ship the Product.

(b) EC agrees to purchase 100,000 units of the Product from rLoop at a price of US$2,000 per unit with a total consideration of US$200 million, in which such price will include, inter alia, royalties, installation and debugging, operation and technology information training, data monitoring and maintenance services.

(c) The Product will be manufactured by BC Medicare in Malaysia under a separate Original Equipment Manufacturer (OEM) manufacturing agreement between BC Medicare and rLoop.

(d) BC Medicare will be responsible for providing training to EC on the functions and operations of the Product.

Purchase Order

The total quantity of the Product under the Agreement is 100,000 units. EC will place individual Purchase Order(s) to rLoop no less than 30 days before the scheduled delivery for each Purchase Order.

3.3 Price

US$2,000 per unit of the Product.