break 7 today itself look like

tomorrow open above 7...

The fact that Supermax actively switching their lines to Nitrile gloves means they are going to have tremendously lower production cost for the same output...

http://www.sunsirs.com/uk/prodetail-358.html

suggest not to attempt calculating this one


Posted by CharlesT > May 27, 2020 1:28 PM | Report Abuse

I calculate n i see the same outcome as freetospeak n i also very scare with my hands shaking....lol

thanks for sharing freetospeak, very confident with your calculation

IB will be coming with another new TP soon.....stay tuned

another excellent comment

Posted by dxbman > May 26, 2020 9:47 PM | Report Abuse

When oil price keep going up but O&G stock prices going down, that's not a good sign.

When everybody is talking about vaccines, covid-19 under control and opening up the economy but glove stock prices keep going up, that's a good sign for glove stocks.

Post removed.Why?

may be both riverstone and TG close 20% up today

very likely..

Posted by Maxam > May 26, 2020 2:50 PM | Report Abuse

Topglove Singapore : 4.44 SGD +0.55 (+14.14%)
Riverstone : 2.15 SGD +0.28 (+14.97%)
Wow! Matching percentage up!

Same fate for Supermx tomorrow?
Supermx : 6.55 MYR + 0.805 (+14%)

We wait and see.

think first before calling another idiot

posted by David Gunter > May 26, 2020 12:40 AM | Report Abuse

And we are in the UK? Idiot

Posted by Dynasty > May 25, 2020 11:29 PM | Report Abuse

Note: For UK, all PPE products including
medical gloves are exempt from both
Purchase/Import VAT and all Sales VAT,
both of which are at 20%; effective from
1/5/2020 to 31/7/2020 after which it
will be reviewed again.

this will have explosive effects on Supermax Aurelia margins then

20% is huge!


Posted by Dynasty > May 25, 2020 11:29 PM | Report Abuse

Note: For UK, all PPE products including
medical gloves are exempt from both
Purchase/Import VAT and all Sales VAT,
both of which are at 20%; effective from
1/5/2020 to 31/7/2020 after which it
will be reviewed again.

yes, after they make it mandatory to wear gloves in every manufacturing, tourism, hotel, restraunts, airports, public transport (bus, train) etc....

Posted by YPheng > May 25, 2020 10:41 PM | Report Abuse

I own supermx and TG shares especially TG since its IPO. Would you all think that Government would impose Windfall Tax on glove companies ?

all the grocery staff we buy from the wet market...and even food packages being delivered to home ...have high risk of containing the virus...

this may be the only source of spread

It should be made mandatory to handle it with gloves

Gloves protect you more than masks, say experts

Touching the face with contaminated hands is the most likely way in which you will catch coronavirus, occupational hygiene professor says

5 May 2020

https://www.telegraph.co.uk/global-health/science-and-disease/gloves-protect-masks-say-experts/

Wearing gloves offers more protection against catching coronavirus than wearing a mask, an expert in occupational hygiene has said.

This is because touching a contaminated surface and then your face is the most common way to catch the virus and studies have shown that people who wear gloves touch their face less, according to John Cherrie, emeritus professor of human health at Heriot-Watt University.

Face masks, by contrast, provide minimal protection to the wearer, although they can help to shield other people if the wearer is infected, he said.

Prof Cherrie and Sean Semple, an associate professor at the University of Stirling, wrote: "We can become infected in a number of ways.

"The three most likely routes are from mucus droplets from coughs and sneezes that land directly on our faces; the transfer of virus particles from contaminated surfaces to our nose, mouth or eyes through hand-to-mouth contacts; and by inhaling very small droplets of contaminated mucus suspended in the air.

"The most important route is via contaminated hands."
...................................................

Masks provide little protection, he added. "I see people wearing masks but 95 per cent will get no benefit - either there will be no virus in the air in the first place or the mask will not be fitted properly.

New Covid-19 cluster detected at KL construction site with 44 cases
NATION

Monday, 25 May 2020

https://www.thestar.com.my/news/nation/2020/05/25/new-covid-19-cluster-detected-at-kl-construction-site-with-44-cases

PUTRAJAYA (Bernama): The Ministry of Health (MOH) has detected a new Covid-19 cluster at a construction site in Kuala Lumpur after 44 cases were reported.

Without giving further information about the cluster, Health director-general Datuk Dr Noor Hisham Abdullah urged construction companies to pay attention not only to the standard operating procedures (SOPs) at worksites but also to workers’ accommodations.

"Our studies show that most probably (it happened because) the foreign workers are staying in confined or cramped spaces. That is the main factor for the spread of infection among them,” he said at a daily Covid-19 media conference here Monday (May 25).

Dr Noor Hisham said even though worksite SOPs had been provided to construction companies, they should also focus on other related aspects.

"It is important to also look at their (workers’) accommodation and how they live there. For example, in Masjid India, 30 workers were staying together in one small flat,” he said.

He said construction companies should look at other factors besides complying with the SOPS because living in confined areas is one of the causes for the virus to spread.

"We (MOH) believe that narrow spaces are one of the important factors that should be delved into and (let’s) look at how social distancing can be implemented. Today we don’t have the vaccine, but the ‘vaccine’ is safe distancing,” he said.

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

Vaccine is GLOVES actually....

Top Glove going to report 215m

https://www.theedgemarkets.com/article/malaysian-banks-cheaper-glovemakers-mania-continues

RHB Research analyst Alan Lim expects Top Glove to deliver a strong set of third-quarter results (3QFY2020), with its profit to jump 85% quarter on quarter to RM215 million.

His optimism is based on four factors: higher average selling prices (ASPs) driven by the tight demand-supply dynamic, strong volume growth, favourable foreign exchange, and lower raw material prices, particularly butadiene.

Lim also highlights that the impact of higher ASPs is a powerful boost to the bottom line, given little increase in production costs.

https://www.theedgemarkets.com/article/malaysian-banks-cheaper-glovemakers-mania-continues

RHB Research analyst Alan Lim expects Top Glove to deliver a strong set of third-quarter results (3QFY2020), with its profit to jump 85% quarter on quarter to RM215 million.

His optimism is based on four factors: higher average selling prices (ASPs) driven by the tight demand-supply dynamic, strong volume growth, favourable foreign exchange, and lower raw material prices, particularly butadiene.

Lim also highlights that the impact of higher ASPs is a powerful boost to the bottom line, given little increase in production costs.

.........

RM 215m.....OMG!

https://www.theedgemarkets.com/article/malaysian-banks-cheaper-glovemakers-mania-continues

RHB Research analyst Alan Lim expects Top Glove to deliver a strong set of third-quarter results (3QFY2020), with its profit to jump 85% quarter on quarter to RM215 million.

His optimism is based on four factors: higher average selling prices (ASPs) driven by the tight demand-supply dynamic, strong volume growth, favourable foreign exchange, and lower raw material prices, particularly butadiene.

Lim also highlights that the impact of higher ASPs is a powerful boost to the bottom line, given little increase in production costs.

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

If Top Glove going to report 215m, i cannot imagine for Supermax....

Post removed.Why?

Supermax Healthcare UK is the European arm of Supermax Corporation Berhad, the ... becoming the first OBM (own brand manufacturer)

https://www.aureliagloves.co.uk/images/brochures/SuperMax_Gloves_22_11_15.pdf

Supermax Aurelia is for UK supply

Only Supermax have an Importer based in U.S due to OBM.....

SUPERMAX INCORPORATED (IL)
Aurora, Illinois


Posted by stocknewbie123 > May 25, 2020 4:53 PM | Report Abuse

some interesting shipment info from May 01, 2019 ─ April 30, 2020 to US...

supermax : https://www.datamyne.com/importer/6665188/supermax-incorporated--il-

Kossan : https://www.datamyne.com/supplier/8998940/kossan-international-sdn-bhd

Harta : https://www.datamyne.com/supplier/1659372/hartalega-sdn-bhd

very much like investment...more people believe in your thesis on a particular stock...the more the stock price and will benefit preacher ma...

generally christians and muslims believe.. by converting more people to their religion they get better benefits in heaven ma...


Posted by BalikZmSm > May 25, 2020 4:30 PM | Report Abuse

well these instant pastors must be meeting a real need in today's high stress society. Just as, there r some who see the pressing need for a forum to express anything n every thing under the Sun,perhaps these ppl r highly stressed too ?or felt a deep need for some recogntion, could it be so, Dude ?

all matter and energy are the same thing in different form...

mass & energy are connected by E=mc2

matter is frozen energy...which are all made of light

it is the energy from the sun...converted by photosynthesis to hydrocarbons...which we are all made of...


Posted by EngineeringProfit > May 25, 2020 3:38 PM | Report Abuse

Kiddy version:


Human has long suspected a connection between them and the Sun and all the stars........

........what is the association?

a)

i can clearly see that you had got into an 'ajaran sesat' (but you are unaware) and you are thinking yo can guide others to the same path you think is the one and only right path...to the ultimate destination

but i have already seen the end destination

i feel it is you who needs guidance

since i know where the guide is leading me to ..and i know the path...as such i do not need to follow any 'guide'..

with my self deduction & intuitions i can see most of this guide are leading to a sesat path....i.e, 'ajaran sesat

Post removed.Why?

buy intel....they are doing well (sis works there)

https://www.bloomberg.com/quote/INTC:US

@Alex, agree...almost all sectors are affected... and i can tell vaccine will not be available anytime soon ( 2 years at the earliest)


Posted by freetospeak > May 24, 2020 2:22 PM | Report Abuse

Do u know even a 0.01% death rate in vaccine canresult more death in the covid itself...becoz not everyone got covid but everyone wannna get vaccinated....so u can go calculate.

Post removed.Why?

In my opinion, gloves demand will infact soar when a country eases lockdown. As much as other industries may benefit by the easing, gloves industry will equally benefit if not more.

The below is something to ponder deep:


- The hospitals will be operating at a much higher patients capacity who were hesitant / constrained to visit healthcare earlier due to risk of Covid 19 infections.

- imagine what happens when the airline industries start operating again? every check in counter staff & all staff (stewardess) who works there will be using gloves. Same goes to other public transport booths

- the same goes to many other industries (tourism & hotels) when they start operating as they normally do

Serbadk is a good company , but i am unable to comprehend how they can do their services in middle east when all flights are restricted

By next qtr we will see the true implication by the dip in its earnings

and the same goes to Gloves to see the surge in earnings

This will be the true earnings going forward for both industry if new-norm does not get any better

In my opinion, gloves demand will infact soar when a country eases lockdown.
........

- The hospitals will be operating at a much higher patients capacity who were hesitant / constrained to visit healthcare earlier due to risk of Covid 19 infections.

- imagine what happens when the airline industries start operating again? every check in counter staff & all staff (stewardess) who works there will be using gloves. Same goes to other public transport booths

- the same goes to many other industries (tourism & hotels) when they start operating as they normally do

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

something to PONDER deep....

In my opinion, gloves demand will infact soar when a country eases lockdown.
........


- The hospitals will be operating at a much higher patients capacity who were hesitant / constrained to visit healthcare earlier due to risk of Covid 19 infections.

- imagine what happens when the airline industries start operating again? every check in counter staff & all staff (stewardess) who works there will be using gloves. Same goes to other public transport booths

- the same goes to many other industries (tourism & hotels) when they start operating as they normally do



https://thewire.in/government/covid-19-long-lockdown-counterproductive

However, what happens if a prolonged lockdown of over a month itself leads to more deaths than it saves?


Let’s focus on India, which has thousands of patients for non-COVID-19 ailments, including heart disease, stroke, cancer, kidney ailments, diabetes, respiratory infections, maternity and child-birth related care and complications, serious injuries, other infectious diseases etc., who need emergency or frequent medical care, some of which is only possible in hospitals. The prolonged lockdown has created serious problems for such patients to access medical services and medicines.

Already, fixed surgeries and procedures have been cancelled.

There do exist some general provisions for serious patients to obtain special passes, and also to maintain supply of medicines. Despite this, many patients are facing great difficulties in accessing essential medicines and medical services. Even when passes are obtained and transport arranged, people have faced inability to pay for medicines and services, as livelihoods have been disrupted by the lockdown.

Several hospitals and medical facilities are not functioning at earlier capacities and others have been diverted as exclusive COVID-19 facilities. Thus, even several patients who can afford to, may not have been able to access essential medical care.

Gloves protect you more than masks, say experts

Touching the face with contaminated hands is the most likely way in which you will catch coronavirus, occupational hygiene professor says

5 May 2020

https://www.telegraph.co.uk/global-health/science-and-disease/gloves-protect-masks-say-experts/

Wearing gloves offers more protection against catching coronavirus than wearing a mask, an expert in occupational hygiene has said.

This is because touching a contaminated surface and then your face is the most common way to catch the virus and studies have shown that people who wear gloves touch their face less, according to John Cherrie, emeritus professor of human health at Heriot-Watt University.

Face masks, by contrast, provide minimal protection to the wearer, although they can help to shield other people if the wearer is infected, he said.

Prof Cherrie and Sean Semple, an associate professor at the University of Stirling, wrote: "We can become infected in a number of ways.

"The three most likely routes are from mucus droplets from coughs and sneezes that land directly on our faces; the transfer of virus particles from contaminated surfaces to our nose, mouth or eyes through hand-to-mouth contacts; and by inhaling very small droplets of contaminated mucus suspended in the air.

"The most important route is via contaminated hands."
...................................................

Masks provide little protection, he added. "I see people wearing masks but 95 per cent will get no benefit - either there will be no virus in the air in the first place or the mask will not be fitted properly.

totally agree on this point - the demand explodes when lockdown is eased...


Posted by ks5S > May 24, 2020 5:30 PM | Report Abuse

now US start opening up from the lockdown, every industry have to start using gloves. Demand is getting higher compare to during lockdown period.

you made it very clear freetospeak.. thanks!

Posted by freetospeak > May 24, 2020 2:22 PM | Report Abuse

Do u know even a 0.01% death rate in vaccine canresult more death in the covid itself...becoz not everyone got covid but everyone wannna get vaccinated....so u can go calculate.

especially healthcare, gloves usage by all hospitals staffs will be a mandatory thing permanently....

this just like the screening at all airports which became a permanent thing after 9/11 attack

when we hear the word vaccine - we need to understand two things:

(1) How good is the vaccine - 100% effective?

Can the vaccine has 100% effectiveness? Even if 1% is not effective, Considering this - would FDA allow it to be used worldwide?
Dont forget its mutating rapidly. Vaccine for current virus may not be effective for the mutated version.

(2) Does the vaccine has - 0% side effects?

Almost all vaccines has side effects and you cannot know what is the side effects till you use it and see the effects after a year.

Say the side effects is minor. Would u still get yourself immunised? After all, the cases are not that high and the risk for young and healthy is almost nil.

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

Considering the above, would the world quickly implement a newly discovered vaccine without thorough long terms side effects studies and enforce it?

the risk vs gains would not justify such enforcement easily unless they are absolutely 100% sure it is effective and has ZERO side effects.

In my opinion, the above is the reality and you would not hear vaccination enforced for the next 2 years at the least.

Governments would rather encourage self protection measures till then.

when we hear the word vaccine - we need to understand two things:

(1) How good is the vaccine - 100% effective?

Can the vaccine has 100% effectiveness? Even if 1% is not effective, Considering this - would FDA allow it to be used worldwide?
Dont forget its mutating rapidly. Vaccine for current virus may not be effective for the mutated version.

(2) Does the vaccine has - 0% side effects?

Almost all vaccines has side effects and you cannot know what is the side effects till you use it and see the effects after a year.

Say the side effects is minor. Would u still get yourself immunised? After all, the cases are not that high and the risk for young and healthy is almost nil.

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

Considering the above, would the world quickly implement a newly discovered vaccine without thorough long terms side effects studies and enforce it?

the risk vs gains would not justify such enforcement easily unless they are absolutely 100% sure it is effective and has ZERO side effects.

In my opinion, the above is the reality and you would not hear vaccination enforced for the next 2 years at the least.

Governments would rather encourage self protection measures till then.

I never thought they had such flexibility!

Supermax seems to be really nimble & ambitious

Posted by probability > May 23, 2020 10:22 PM | Report Abuse X

● The bulk of its expansion plans will mainly focus on nitrile gloves (NBR), which has stronger demand and better margins. In the event that demand for NBR gloves outweigh that of natural latex gloves (NR), SUCB may look to convert some existing NR production lines to produce NBR gloves

Butadiene Rubber (raw material for Nitrile gloves)....

Natural Rubber:

http://www.sunsirs.com/uk/prodetail-586.html

Butadiene Rubber:

http://www.sunsirs.com/uk/prodetail-358.html

From the above charts, you can see their price difference which is diverging , means margin will expand further for Nitrile Gloves in coming quarters

● The bulk of its expansion plans will mainly focus on nitrile gloves (NBR), which has stronger demand and better margins. In the event that demand for NBR gloves outweigh that of natural latex gloves (NR), SUCB may look to convert some existing NR production lines to produce NBR gloves

...........

The above extract from CGS-CIMB article above is also extremely positive as the Butadiene Rubber price had come down significantly against Natural rubber.

We should be seeing Supermax consistently beating earnings of all other players next few quarters in leaps.

TheEdge has given a very fair view on gloves stock today.

If you read carefully, its about selecting companies which has the ability to capitalize on the opportunity (both in terms of margin & rise in throughput).

Some companies simply cannot increase their pricing because of already having long term dedicated clients - simply because the market ASP has surged (e.g Kossan).

Some companies, cannot increase their throughput as they simply do not have spare capacity (e.g, Kossan again).

The distributors are the ones minting money as they booked the orders far ahead, hoarding and making a killing by hiking up the selling price.

This really shows the importance of OBM (people have truly underestimated the significance).

@freetospeak, dont forget the enormous growth potential on capacity (throughput) in the near future and the levelof optimism given by the management.

Last i have seen such optimism on Dayang's management a year ago before it rose from 0.8 to 3.0

Perhaps the recent covid outbreak, forced U.S to use Supermax gloves though it had not met the special specification needed earlier..

Who knows, this may catalyze a new breakthrough market for Supermax permanently...

Perhaps we can look it at it another way, Harta has the risk of losing the margin in the future if Supermax is able to penetrate the same niche market

Thanks for the discussion Philip. More clarification below:

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

Q1:

'Hartalega has a patented production processes method that allows them to meet those specifications and yet produce commercially at a cheaper rate than all of its competitors'


This means the product is the same, but the production method is different. Do let us know the magnitude of the reduction in production cost/margin expansion due to this if you are aware. My guesstimate says 95% of the COP can only be the raw material which should be the same for all competitors.


Q2:

'Basically for medical nitrile gloves they have to meet certain size and quality specifications for US supply.'


Guess the above is the reason why ASP of Hartalega higher than its competitors - for having a niche market. This could be the better explanation for the higher profit margin, unlike COP. Do let me know if there are other reasons you are aware.