sifu charlest...i think either they made it big n taking a break or want to be back when pandemic is over...

now i think u also beat sifu philip level...but still humble, jovial, and young at heart as ever...

this year my gloves dip wiped out whatever i made from recovery stocks like dayang....since i was heavy on both:(

https://www.factmr.com/report/5115/ultralow-temperature-freezer-market

Global Ultra-low Temperature Freezer Market Overview

Ultra-low temperature freezers, or ULT freezers, are used to store biological items such as blood & blood components, drug compounds, chemicals, enzymes, etc. They are used across the healthcare industry, such as in hospitals, research institutes, blood banks, etc. The ultra-low temperature freezer market is predicted to expand at a CAGR of 4.4% over the forecast period of 2020-2030.

The market is expected to experience immense growth due to the ever-growing demand for blood & blood products, which is one of the key driving factors of this industry.

Growing research & development activities among key players and government support for clinical trials have also proven to be propellers for the expansion of the ultra-low temperature freezer market size. Amidst all these factors, the COVID-19 pandemic has also notably affected the market in a positive way. Due to the pandemic, there has been an exorbitant increase in blood & blood component demand throughout the globe, thereby boosting the ultra-low temperature freezer market.

..................

https://www.factmr.com/images/reports/ultra-low-temperature-freezer-market-competition-analysis.jpg

we can see from above Eppendorf AG is the frontrunner who source from Uchitec

Low left his revenue forecasts for Uchi unchanged, but raised the earnings per share estimates for 2020-2022 by 8.3% to 8.5%.

Affin Hwang Capital currently has a “buy” call on the stock, which it upgraded in November last year.

“We like Uchi for its strong relationship with its key customer and how it remains the sole supplier of its coffee modules.

“Its niche strategy and well-regarded management team has helped sustain the company’s solid financial track record and likewise its strong dividend payout ratio.

“Its dividend yields of 5%-6% also looks attractive, ” according to Low.

Since 2013, Uchi has maintained a dividend policy of allocating at least 70% of its profit after taxation.

Uchi also has a sturdy balance sheet with zero debt against a cash and cash equivalents of RM117.39mil.

Such a financial position would provide ample room for Uchi to expand its operations, both organically and inorganically.

Currently, Uchi has two operating plants, one in Malaysia and another in Guangdong, China.

Uchi’s vaccine storage play
..........................

AMID the rally in technology stocks that has pushed valuations through the roof, one particular company has remained a relatively cheaper proxy to the sector despite its attractive dividend yield and strong profit margin.

In comparison to the industry’s “big boys” such as Vitrox Corp Bhd, Pentamaster Corp Bhd and Greatech Technology Bhd that have price-to-earnings (PE) ratios in the range of 60-80 times, Penang-based Uchi Technologies Bhd has a PE of just 19 times.

The company, which designs and develops electronic control systems, has seen its share price rising by nearly 77% from the lows of 2020. However, the current share price of RM3 remains slightly lower than the levels seen in 2017-2018.

Based on its website, Uchi says it serves a wide base of multinational companies, located primarily in Europe. The region contributes over 90% of Uchi’s annual turnover.


However, unknown to many, Uchi (pic above) has been supplying components to one of the world’s leading ultra-low temperature (ULT) freezer makers, the Germany-based Eppendorf AG.

In December 2020, it was reported that Eppendorf and Scientific Laboratory Supplies have been chosen to supply ULT freezers for the storage of Covid-19 vaccines in the United Kingdom.

It is noteworthy that the Pfizer-BioNTech’s Covid-19 vaccine needs special freezers that could store the doses in ultra-cold temperatures of -70°C.

Countries have been rushing to purchase ultra-cold storage facilities, which are necessary to maintain the potency of the vaccine and ensure its effectiveness.

In the case of Malaysia, the Science, Technology and Innovation Minister Khairy Jamaluddin said in January that the government would spend RM6.7mil to purchase deep freezers to store the Pfizer-BioNTech vaccine, which will be arriving on Feb 26.

A source close to Uchi tells StarBizWeek that Eppendorf has been a long-term client of the company.

“Under its biotechnology segment, Uchi has been making deep freezer components for Eppendorf.

“In the last six months or more, the demand for such freezers had risen sharply as many companies and governments were preparing to roll out the vaccination programmes. The demand may likely rise further in 2021 as countries turn more aggressive in vaccinating their population. To an extent, Uchi will benefit from this demand, ” the source says.

A quick check on its 2019 annual report showed that the biotechnology segment contributed 18% of Uchi’s revenue.

“Products in this category include electronic control systems such as high precision weighing scales, centrifuges and deep freezers, ” according to Uchi.

Meanwhile, the biggest revenue contributor of 81% is the “Art-of-living” product group.

This product category comprises electronic control systems for household appliances as well as professional appliances for the office and office services sector.

It is unclear whether Uchi has seen a significant jump in orders for deep freezer components, as the company does not provide a breakdown.

Uchi’s performance in the first nine months of financial year 2020 (9M20) has been adversely affected by the challenges arising from the Covid-19 outbreak globally.


The company had issued a profit warning in its first quarter results filing, anticipating a low double-digit revenue decline in US dollar-denominated receipts for the year due to lower sales.

However, as orders turned stronger in the second half of the year, Uchi amended its expectations to “a low single-digit revenue decline in US dollars” in its third quarter results’ filing on Nov 25,2020.

“Nevertheless, the group is confident that we will remain profitable and maintain a strong balance sheet, ” it said.

Affin Hwang Capital analyst Kevin Low said in a Nov 26,2020 report that Uchi’s core profit in 9M20 was above expectations, accounting for 84% of his full-year forecast due to better-than-expected margins.

In tandem with the higher revenue and hence better operating leverage, he pointed out that Uchi’s earnings before interest, taxes, depreciation and amortisation (Ebitda) margin in the third quarter of financial year 2020 (3Q20) jumped by 10 percentage points quarter-on-quarter to a high of 63.4%.

“While this may have also been due to a better revenue mix, we think that there may have been lower production costs due to one-off cost savings implemented during the movement control order which may not be repeated in the subsequent quarters, ” he said.

For comparison, the Ebitda margin recorded in the pre-pandemic 3Q19 was 57.1%.

In fact, Uchi has recorded a consistent operating profit margin averaging 45% since its listing in 2000.

Low also added that the company’s revenue outlook has improved, as the management has revised its 2020 revenue guidance with a narrower decline.

....and CHINA will be the next Europe with a growing upper class with leisure time

FACT 1: REVENUE MAIN DRIVER (HOME USE SALES)
............................

http://swisscenters.org/wp-content/uploads/2013/11/Jura.pdf

JURA’s core business is centered on high-end fully automatic coffee machines for home and commercial use, with home use sales representing about 70% of the total.

JURA’s entire product range is characterized by exceptional design, user-friendly control functions and the ultimate coffee taste quality.

(70% of Uchitec revenue is from Jura)



FACT 2: THE WORST IMPLICATION IS OVER IN 2020 (OUTSIDE HOME DEMAND)
...............................................

https://coffeebi.com/2020/11/03/the-future-of-coffee-away-from-home/

At the end of 2020 in Italy, an average drop in value of 45% is expected in coffee consumption away from home. Compared to other major countries, the very restrictive, initial policies that led to the complete suspension of activities for several months, will have a greater impact on HORECA, while the decrease in consumption in the office will be slightly more contained than the European average.

In Spain, the decrease in coffee sales will be close to 50%, while in France, the initial, more permissive policies regarding closures and opening hours have slowed down the decrease in consumption within HORECA. The drop in consumption in the office will have the greatest impact on the annual trend of the away-from-home market (-48.1%), due to large-scale remote working.

The coffee market in Germany is the largest in Europe. In 2019, the consumption of coffee away-from-home recorded a 2.5% increase in value, with an even greater increase in the office segment. In 2020, the reduction in consumption is expected to be 41% in value. The loss will be greater in the office segment, due to the strict home-working policies adopted, while HORECA has been affected by restrictive, regional regulations and also as a result of the increase in takeaway coffee sales.

Despite the uncertainty related to “Brexit”, the coffee market away from home in the UK continued to grow until 2019 (+ 2.9% in value). In 2020, restrictions on the operation of many facilities are expected to have resulted in a 42.7% reduction in coffee consumption outside the home. The greatest losses will be recorded in the offices, while the decrease in sales in the HORECA industry will be partially mitigated by the widespread use of take-away coffee and by the increase in delivery services.




FACT 3: THE NEW DEMAND (HOME USE) HAD SPIKED & WILL SUSTAIN GOING FORWARD & ADDED WITH RECOVERY FROM OUTSIDE HOME
.......................................

https://perfectdailygrind.com/2020/11/how-covid-19-changed-home-coffee-consumption/

The Rise In Home Coffee Consumption
...................................

Out-of-home coffee consumption, such as in cafés and restaurants, makes up around 25% of total consumer demand for coffee. So, when some 95% of these businesses closed in early 2020, temporarily or permanently, the coffee industry took a tremendous hit.

“We have seen an increase in grinder sales, and it’s the most substantial increase that we have had in any six-month period. We are up 70% since Covid-19 started,” Joyce tells me.


Trends Within Home Coffee Consumption
.....................................

So, now we know that home coffee consumption has increased during Covid-19 – but what have consumers bought?

Firstly: coffee. Amid concerns the supply chain was struggling with Covid-19, around one in four people in the US reported stockpiling coffee to avoid running out. During the pandemic, 27% of home brewers reported drinking brewed coffee at home, while 25% used pod or capsule machines.

Most people have stated that they are still using the same equipment and coffee products that they had before the pandemic. However, people are trying new things. It was reported that just over 40% of millennials stated that they have experimented with different brewing methods.

Consumers are also becoming more confident in their coffee-making capabilities, with two-thirds stating that they have “perfected” their recipes and techniques. This makes sense – with more time at home and out of the office, coffee drinkers have more space to to repeat and refine a target recipe.

However, some coffee drinkers still seek convenience, despite having more time at home. Sales of bulk cold brew and iced lattes rose by 129% throughout the first few months of the pandemic, and recent forecasts show that the ready-to-drink (RTD) coffee market is expected to keep increasing. It is anticipated that it will be worth a staggering US $42 billion by 2027.

FACT 1: REVENUE MAIN DRIVER (HOME USE SALES)
............................

http://swisscenters.org/wp-content/uploads/2013/11/Jura.pdf

JURA’s core business is centered on high-end fully automatic coffee machines for home and commercial use, with home use sales representing about 70% of the total.

JURA’s entire product range is characterized by exceptional design, user-friendly control functions and the ultimate coffee taste quality.

(70% of Uchitec revenue is from Jura)



FACT 2: THE WORST IMPLICATION IS OVER IN 2020 (OUTSIDE HOME DEMAND)
...............................................

https://coffeebi.com/2020/11/03/the-future-of-coffee-away-from-home/

At the end of 2020 in Italy, an average drop in value of 45% is expected in coffee consumption away from home. Compared to other major countries, the very restrictive, initial policies that led to the complete suspension of activities for several months, will have a greater impact on HORECA, while the decrease in consumption in the office will be slightly more contained than the European average.

In Spain, the decrease in coffee sales will be close to 50%, while in France, the initial, more permissive policies regarding closures and opening hours have slowed down the decrease in consumption within HORECA. The drop in consumption in the office will have the greatest impact on the annual trend of the away-from-home market (-48.1%), due to large-scale remote working.

The coffee market in Germany is the largest in Europe. In 2019, the consumption of coffee away-from-home recorded a 2.5% increase in value, with an even greater increase in the office segment. In 2020, the reduction in consumption is expected to be 41% in value. The loss will be greater in the office segment, due to the strict home-working policies adopted, while HORECA has been affected by restrictive, regional regulations and also as a result of the increase in takeaway coffee sales.

Despite the uncertainty related to “Brexit”, the coffee market away from home in the UK continued to grow until 2019 (+ 2.9% in value). In 2020, restrictions on the operation of many facilities are expected to have resulted in a 42.7% reduction in coffee consumption outside the home. The greatest losses will be recorded in the offices, while the decrease in sales in the HORECA industry will be partially mitigated by the widespread use of take-away coffee and by the increase in delivery services.




FACT 3: THE NEW DEMAND (HOME USE) HAD SPIKED & WILL SUSTAIN GOING FORWARD & ADDED WITH RECOVERY FROM OUTSIDE HOME
.......................................

https://perfectdailygrind.com/2020/11/how-covid-19-changed-home-coffee-consumption/

The Rise In Home Coffee Consumption
...................................

Out-of-home coffee consumption, such as in cafés and restaurants, makes up around 25% of total consumer demand for coffee. So, when some 95% of these businesses closed in early 2020, temporarily or permanently, the coffee industry took a tremendous hit.

“We have seen an increase in grinder sales, and it’s the most substantial increase that we have had in any six-month period. We are up 70% since Covid-19 started,” Joyce tells me.


Trends Within Home Coffee Consumption
.....................................

So, now we know that home coffee consumption has increased during Covid-19 – but what have consumers bought?

Firstly: coffee. Amid concerns the supply chain was struggling with Covid-19, around one in four people in the US reported stockpiling coffee to avoid running out. During the pandemic, 27% of home brewers reported drinking brewed coffee at home, while 25% used pod or capsule machines.

Most people have stated that they are still using the same equipment and coffee products that they had before the pandemic. However, people are trying new things. It was reported that just over 40% of millennials stated that they have experimented with different brewing methods.

Consumers are also becoming more confident in their coffee-making capabilities, with two-thirds stating that they have “perfected” their recipes and techniques. This makes sense – with more time at home and out of the office, coffee drinkers have more space to to repeat and refine a target recipe.

However, some coffee drinkers still seek convenience, despite having more time at home. Sales of bulk cold brew and iced lattes rose by 129% throughout the first few months of the pandemic, and recent forecasts show that the ready-to-drink (RTD) coffee market is expected to keep increasing. It is anticipated that it will be worth a staggering US $42 billion by 2027.

ASIAN COFFEE CONSUMER TREND
...........................

In Asia, following the global trend, the number of commerciale stablishments serving specialty type coffee has multiplied in major business and entertainment hubs. As an example, JURA observes an uptrend in Asia’s general public awareness and interest in gourmet coffee and an increased knowledge and preference for specialty coffee machines. Although JURA’s percentage sales in Asia is low (total of 2%), the region’s sales are growing at an average of over 30% per annum. This sustained growth indicates that the region is becoming increasingly important for JURA.

JURA in CHINA
.............

Subsidiary background and current situation JURAhas had a presence in Japan,Hong Kong,Taiwan and South EastAsia (via Singapore) eversince the mid-1990s.The company partnered with a dominantHong Kong coffee shop chain operator and coffee productsretailerin 1997.This partnership insured JURA’sreach into the Hong Kong market that has a large number of foreign expatriates, international corporate offices and small to mid size commercial outlets. In 2000,JURA’s Hong Kong distributor requested exclusive distributorship on Mainland China. At the end of 2000, JURA officially authorized its Hong Kong partner to distribute on the Mainland. However, after commissioning professional market inquiriesin China in 2002,JURA realized that it was not efficient to distribute on the Mainland through Hong Kong.With the support of a local Swiss consulting network in Shanghai,JURA decided to appoint another distributor to manage the direct distribution in China market.

the1994investor...please write an article why vitrox valuation vs uchitec is as such

further your blog address cannot be shared in i3 as it has numerical value on its url

it would be good if you can change that for future sharings

buy back sure good prospect la..

[COMFORT] Change In Substantial Shareholder's Shareholding - DATO' LAU ENG GUANG on 26-Feb-2021
Stock [COMFORT]: COMFORT GLOVES BHD
Announcement Date 26-Feb-2021
Substantial Shareholder's Particular:
Name DATO' LAU ENG GUANG
Details of Changes:
Currency -
Date of Change Type Number of Shares
26-Feb-2021 Acquired 1,000,000

You mean ATE player will be able to grow significantly easier than EMS?

thanks for the info, being non electronics engineer its a little difficult for me to grasp all these

but you are right...one need to understand the differences

Posted by newbie8080 > Feb 26, 2021 11:04 AM | Report Abuse

Vitrox and Uchitec is not in the same category.
Uchitec is EMS player
Vitrox is ATE player.

Their biz are unique and serve different customers.

Get your facts right.

I suggest all of you here to go and study OSAT and semicon players.

Then you can understand the entire value chain.

root cause of all problems (mostly at least) in the world is overpopulation....breeding of low quality children motivated by media, movies, religion and selfish politician controlled indirectly by influential businessman with short term interest

but if you stop population growth, one is faced with the inevitable halt of collective economic growth

we talk about conserving nature, protecting wildlife, reduce pollution and global warming...just like how the hotel owner tells you to avoid placing towel on the door if possible to safe soap usage for environment when all he wants is to safe his cost

everything...healthcare, school care, cheaper housing loan, or 'better' wages against rising consumables cost...all are temporary cosmetics..

the root cause of these issues is population growth

all intelligent rich businessman at the top knows profitability is derived from these growth fundamentally...and this not easy for ordinary people to see

so it is not in the influential businessman's interest to talk on the root cause

capitalism is an economy which is based on growth, communist did not surface without a reason

though capitalism has its merits, its self interest had even forbidden any questioning or propagation of communism concept as if its an evil form

they key is to have quality life without growth ..capitalism cannot exist forever...the world will eventually reach saturation one day though (forced to eventually)...but not without suffering from majority poor of the future populations

the world (majority population) has a natural mechanism that is not controlled by logics or ethics but pure lust, pleasure seeking and some greed unfortunately

the rational man appears unable to run very far from the irrational self that is within all of us

yes pjseow, the FFB yield is also improving ...hope the palm oil price sustains:)

thanks investortrader88

Hi pjseow, no i didnt. I sold to buy gloves and other high risk investment to make faster return. I wanted to buy back again when it dropped below 7 but it went up too fast. I have never doubted mfcb as a gem..but only sold to make quicker return to enlarge capital.

It requires lots of patience like you to make big on mfcb

Very good investment to park a big portion of your money n sleep well.

thanks moneySIFU...wish you well too...miss those days in i3 where there were less people and less noise to filter..hehe

good luck & wish super good news pjseow....

it has way superior margin compared to Vitrox and generous dividend payout

even growth..what makes one think that it cant match vitrox?

thank you, i wonder why cant it be another Vitrox

just read, its always nice reading sifu sslee article.. thumbs up!

Post removed.Why?

well said pjseow, the ASP will not decline till 2022

reason is new capacity and raw material is purchased in advance with a certain expectation on profitability

they will never bring down the ASP , else the new players will not make money


Posted by pjseow > Feb 21, 2021 9:54 PM | Report Abuse

To predict the future earnings and revenues of topglove, we should look at historical facts . The last pandemic was H1N1 which started in Jan 2019 and end in Aug 2010 lasting 18 months. Estimated infected was 60 million worldwide with a few hundred thoudands death. Topglove earning and revenue peak between 12 to 15 months from the beginning of the pandemic. The peak qtrly earning was 70 millions and revenue was 600 millions. After the peak , it taper down.for about a year before they started to move up again. Then in 2015 which was 5 years after the peak in 2010, the earning match the peak of 70 millions. The earnings continue to grow to more than.100 millions. If topglove were to repeat the same.cycle with this pandemic , assuming the earnings peak in 2021, after a year or 2 of tapering down, the earnings will grow and match the 2021 peak in 2026 when the capacity has grown double. How much will topglove worth by then? You can do the maths and not forgetting hiw much dividend you would have recd during the 5 yea

Post removed.Why?

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Post removed.Why?

Post removed.Why?

Post removed.Why?

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Post removed.Why?

GENTING CAN FLY KITE TILL FEB 2022
..................................

PHASE 1 (February – April 2021)

Priority group 1
Frontliners comprising of public and private healthcare personnel
Priority group 2
Frontliners consisting of essential services*, defence and
security personnel
Target groups for the 3 phases of vaccination and the
estimated number of individuals to be vaccinated

PHASE 2 (April – August 2021)

Priority group 1
Remainder of healthcare workers as well as those in essential
services and defence and security personnel
Priority group 2
Senior citizens (those aged 60 and over), high-risk group with chronic
diseases such as heart disease, obesity, diabetes and high blood
pressure and people with disabilities (OKU)*
Pandemic control measures
500,000
people
9.4
million
people

PHASE 3(May 2021 – February 2022)

Priority group
Adult population aged 18 years and above (citizens & noncitizens)
Priority will be given to those in the red zones; followed by those
in yellow zones and finally those in green zones
Pandemic control measures
13.7
million
people/
more
Source: MOH
* Will be updated from time to time.

......................

GENTING CAN FLY KITE TILL FEB 2022!

https://www.sinchew.com.my/content/content_2428553.html

all those vaccine believers jumped out of the boat already...vaccine story no longer will induce sellers...company buy back in billions to support above RM 6 already...

If the vaccine will wipe out the 214 Billion demand - supply deficit, no manufacturer will invest on adding capacity to bear fruit after 18 months....

One need true business acumen to see this

we have EPF and big funds to buy

all those vaccine believers jumped out of the boat already...vaccine story no longer will induce sellers...company buy back in billions to support above RM 6 already...

If the vaccine will wipe out the 214 Billion demand - supply deficit, no manufacturer will invest on adding capacity to bear fruit after 18 months....

One need true business acumen to see this

we have EPF and big funds to buy

Sri Trang Rubber glove factory in South Thailand in flames

https://www.bangkokpost.com/thailand/general/2072035/rubber-glove-factory-in-south-in-flames


It takes 18 months to build new capacity....but only 1 day to wipe out 1/3 of existing capacity!

Sri Trang Rubber glove factory in South Thailand in flames

https://www.bangkokpost.com/thailand/general/2072035/rubber-glove-factory-in-south-in-flames


It takes 18 months to build new capacity....but only 1 day to wipe out 1/3 of existing capacity!

Rubber glove factory in South Thailand belong to Sri Trang in flames

https://www.bangkokpost.com/thailand/general/2072035/rubber-glove-factory-in-south-in-flames


Walao....18 months to build new capacity from Sri Trang...existing 1/3 capacity gone ah??

Rubber glove factory in South Thailand belong to Sri Trang in flames

https://www.bangkokpost.com/thailand/general/2072035/rubber-glove-factory-in-south-in-flames


Walao....18 months to build new capacity from Sri Trang...existing 1/3 capacity gone ah??

Rubber glove factory in South Thailand belong to Sri Trang in flames

https://www.bangkokpost.com/thailand/general/2072035/rubber-glove-factory-in-south-in-flames


Walao....18 months to build new capacity from Sri Trang...existing 1/3 capacity gone ah??

From above...what is 1 million covid test per day vs 214 billion gloves shortfall?

and 18 months to make new gloves production capacity?

""investment firms are financing glove purchasing deals in return for large profit share, which in turn is driving total glove cost""

you can imagine why they will never bring down the ASP for next 2 years

https://blog.eagleprotect.com/4-major-factors-causing-glove-price-increases

1. SUPPLY AND DEMAND

There has been a 45% increase in global demand for nitrile disposable gloves since the start of COVID-19. Put that into figures, the supply and demand deficit equates to a shortfall of 214 billion disposable gloves - demand has exploded while the supply is only growing incrementally.

US-based Allied Market Research estimates that the global disposable gloves market amounted to $6.8 billion in 2019, and is expected to nearly triple to $18.8 billion by 2027.

This is leading to glove manufacturers posting record profits, attributed to the increased production, a higher volume of gloves sold and significantly higher average selling prices compared with 2019. Net profits as high as a sevenfold increase are now being reported.


2. PRODUCTION COSTS AND CAPACITY

As glove manufacturers produce at their maximum output, the increased glove demand continues to far exceed global supply availability.

The lack of workers in glove manufacturing, due to health and social restrictions of the pandemic, is resulting in increased production costs. Factories must implement Covid testing to avoid the spread of the virus in their facilities, otherwise lockdown measures occur, as has happened to one of the world’s largest glove manufacturers, affecting thousands of workers.

There are also reports of nitrile glove capacity constrained by the shortage of glove moulds, which are essential for production.


3. RAW MATERIALS

The worldwide shortage of nitrile gloves is predicted to continue for more than a year into the first half of 2022 due to a lack of raw materials.

Factories that supply the raw materials are adding new capacity based on the previous year’s demand - insufficient for current demand levels. Building new factories to handle the current demand of nitrile rubber can take upwards of 18 months to be operational.

"The shortage of raw material for our nitrile gloves and the disruption to the supply or production of other material such as packaging materials due to the global lockdown, has caused an increase in the production cost," according to the world's biggest producer of rubber gloves.


4. THIRD-PARTY DEALERS AND HEDGE FUND INVESTMENTS

Social media is awash with third-party dealers offering gloves at exorbitant prices to those desperate enough to purchase from them, in order for their business to continue to operate. Some factories are offloading rejected quality stock they are unable to sell directly to hospitals and governments without legal risks. That is, rejected stock off the production line, offloaded through freight forwarders and third-party brokers without export paperwork which is legally required.

Additionally, investment firms are financing glove purchasing deals in return for large profit share, which in turn is driving total glove cost.

The culmination of these factors are the reason nitrile glove users have seen a dramatic increase in cost throughout 2020. With prices likely to continue increasing for the foreseeable future, purchasing gloves, especially during a pandemic, does come with quality and safety issues for users, particularly in the medical and food industries.

From above...what is 1 million covid test per day vs 214 billion gloves shortfall?

and 18 months to make new gloves production capacity?

""investment firms are financing glove purchasing deals in return for large profit share, which in turn is driving total glove cost""

you can imagine why they will never bring down the ASP for next 2 years

https://blog.eagleprotect.com/4-major-factors-causing-glove-price-increases

1. SUPPLY AND DEMAND

There has been a 45% increase in global demand for nitrile disposable gloves since the start of COVID-19. Put that into figures, the supply and demand deficit equates to a shortfall of 214 billion disposable gloves - demand has exploded while the supply is only growing incrementally.

US-based Allied Market Research estimates that the global disposable gloves market amounted to $6.8 billion in 2019, and is expected to nearly triple to $18.8 billion by 2027.

This is leading to glove manufacturers posting record profits, attributed to the increased production, a higher volume of gloves sold and significantly higher average selling prices compared with 2019. Net profits as high as a sevenfold increase are now being reported.


2. PRODUCTION COSTS AND CAPACITY

As glove manufacturers produce at their maximum output, the increased glove demand continues to far exceed global supply availability.

The lack of workers in glove manufacturing, due to health and social restrictions of the pandemic, is resulting in increased production costs. Factories must implement Covid testing to avoid the spread of the virus in their facilities, otherwise lockdown measures occur, as has happened to one of the world’s largest glove manufacturers, affecting thousands of workers.

There are also reports of nitrile glove capacity constrained by the shortage of glove moulds, which are essential for production.


3. RAW MATERIALS

The worldwide shortage of nitrile gloves is predicted to continue for more than a year into the first half of 2022 due to a lack of raw materials.

Factories that supply the raw materials are adding new capacity based on the previous year’s demand - insufficient for current demand levels. Building new factories to handle the current demand of nitrile rubber can take upwards of 18 months to be operational.

"The shortage of raw material for our nitrile gloves and the disruption to the supply or production of other material such as packaging materials due to the global lockdown, has caused an increase in the production cost," according to the world's biggest producer of rubber gloves.


4. THIRD-PARTY DEALERS AND HEDGE FUND INVESTMENTS

Social media is awash with third-party dealers offering gloves at exorbitant prices to those desperate enough to purchase from them, in order for their business to continue to operate. Some factories are offloading rejected quality stock they are unable to sell directly to hospitals and governments without legal risks. That is, rejected stock off the production line, offloaded through freight forwarders and third-party brokers without export paperwork which is legally required.

Additionally, investment firms are financing glove purchasing deals in return for large profit share, which in turn is driving total glove cost.

The culmination of these factors are the reason nitrile glove users have seen a dramatic increase in cost throughout 2020. With prices likely to continue increasing for the foreseeable future, purchasing gloves, especially during a pandemic, does come with quality and safety issues for users, particularly in the medical and food industries.

From above...what is 1 million covid test per day vs 214 billion gloves shortfall?

and 18 months to make new gloves production capacity?

""investment firms are financing glove purchasing deals in return for large profit share, which in turn is driving total glove cost""

you can imagine why they will never bring down the ASP for next 2 years

https://blog.eagleprotect.com/4-major-factors-causing-glove-price-increases

1. SUPPLY AND DEMAND

There has been a 45% increase in global demand for nitrile disposable gloves since the start of COVID-19. Put that into figures, the supply and demand deficit equates to a shortfall of 214 billion disposable gloves - demand has exploded while the supply is only growing incrementally.

US-based Allied Market Research estimates that the global disposable gloves market amounted to $6.8 billion in 2019, and is expected to nearly triple to $18.8 billion by 2027.

This is leading to glove manufacturers posting record profits, attributed to the increased production, a higher volume of gloves sold and significantly higher average selling prices compared with 2019. Net profits as high as a sevenfold increase are now being reported.


2. PRODUCTION COSTS AND CAPACITY

As glove manufacturers produce at their maximum output, the increased glove demand continues to far exceed global supply availability.

The lack of workers in glove manufacturing, due to health and social restrictions of the pandemic, is resulting in increased production costs. Factories must implement Covid testing to avoid the spread of the virus in their facilities, otherwise lockdown measures occur, as has happened to one of the world’s largest glove manufacturers, affecting thousands of workers.

There are also reports of nitrile glove capacity constrained by the shortage of glove moulds, which are essential for production.


3. RAW MATERIALS

The worldwide shortage of nitrile gloves is predicted to continue for more than a year into the first half of 2022 due to a lack of raw materials.

Factories that supply the raw materials are adding new capacity based on the previous year’s demand - insufficient for current demand levels. Building new factories to handle the current demand of nitrile rubber can take upwards of 18 months to be operational.

"The shortage of raw material for our nitrile gloves and the disruption to the supply or production of other material such as packaging materials due to the global lockdown, has caused an increase in the production cost," according to the world's biggest producer of rubber gloves.


4. THIRD-PARTY DEALERS AND HEDGE FUND INVESTMENTS

Social media is awash with third-party dealers offering gloves at exorbitant prices to those desperate enough to purchase from them, in order for their business to continue to operate. Some factories are offloading rejected quality stock they are unable to sell directly to hospitals and governments without legal risks. That is, rejected stock off the production line, offloaded through freight forwarders and third-party brokers without export paperwork which is legally required.

Additionally, investment firms are financing glove purchasing deals in return for large profit share, which in turn is driving total glove cost.

The culmination of these factors are the reason nitrile glove users have seen a dramatic increase in cost throughout 2020. With prices likely to continue increasing for the foreseeable future, purchasing gloves, especially during a pandemic, does come with quality and safety issues for users, particularly in the medical and food industries.

what is 1 million covid test per day vs 214 billion gloves shortfall?

and 18 months to make new gloves production capacity?

""investment firms are financing glove purchasing deals in return for large profit share, which in turn is driving total glove cost""

from above you can imagine this will never bring down the ASP for next 2 years

https://blog.eagleprotect.com/4-major-factors-causing-glove-price-increases

1. SUPPLY AND DEMAND
There has been a 45% increase in global demand for nitrile disposable gloves since the start of COVID-19. Put that into figures, the supply and demand deficit equates to a shortfall of 214 billion disposable gloves - demand has exploded while the supply is only growing incrementally.

US-based Allied Market Research estimates that the global disposable gloves market amounted to $6.8 billion in 2019, and is expected to nearly triple to $18.8 billion by 2027.

This is leading to glove manufacturers posting record profits, attributed to the increased production, a higher volume of gloves sold and significantly higher average selling prices compared with 2019. Net profits as high as a sevenfold increase are now being reported.


2. PRODUCTION COSTS AND CAPACITY
As glove manufacturers produce at their maximum output, the increased glove demand continues to far exceed global supply availability.

The lack of workers in glove manufacturing, due to health and social restrictions of the pandemic, is resulting in increased production costs. Factories must implement Covid testing to avoid the spread of the virus in their facilities, otherwise lockdown measures occur, as has happened to one of the world’s largest glove manufacturers, affecting thousands of workers.

There are also reports of nitrile glove capacity constrained by the shortage of glove moulds, which are essential for production.


3. RAW MATERIALS
The worldwide shortage of nitrile gloves is predicted to continue for more than a year into the first half of 2022 due to a lack of raw materials.

Factories that supply the raw materials are adding new capacity based on the previous year’s demand - insufficient for current demand levels. Building new factories to handle the current demand of nitrile rubber can take upwards of 18 months to be operational.

"The shortage of raw material for our nitrile gloves and the disruption to the supply or production of other material such as packaging materials due to the global lockdown, has caused an increase in the production cost," according to the world's biggest producer of rubber gloves.


4. THIRD-PARTY DEALERS AND HEDGE FUND INVESTMENTS
Social media is awash with third-party dealers offering gloves at exorbitant prices to those desperate enough to purchase from them, in order for their business to continue to operate. Some factories are offloading rejected quality stock they are unable to sell directly to hospitals and governments without legal risks. That is, rejected stock off the production line, offloaded through freight forwarders and third-party brokers without export paperwork which is legally required.

Additionally, investment firms are financing glove purchasing deals in return for large profit share, which in turn is driving total glove cost.

The culmination of these factors are the reason nitrile glove users have seen a dramatic increase in cost throughout 2020. With prices likely to continue increasing for the foreseeable future, purchasing gloves, especially during a pandemic, does come with quality and safety issues for users, particularly in the medical and food industries.

you want to buy recovery stocks...you do la...it has no conflict of interest with gloves earnings...

like i said earlier, the covid testing is 1% of the demand

general hygiene standards change worldwide - 99% of the demand

all big 4 glove makers (Harta, Topglove, Supermax, Kossan) had already buy back shares significantly above current trading price (after the vaccine news broke)....even EPF is buying at current price

market cannot ignore this for too long

i dont mind missing the bottom which is uncertain, so that i dont miss the upward thrust which is inevitable