The demand for gloves will rise by 50%

Nanyang Sat, May 16, 2020

https://www.klsescreener.com/v2/news/view/677697

The demand for gloves will rise by 50%

Nanyang Sat, May 16, 2020

https://www.klsescreener.com/v2/news/view/677697

anytime Dayang earnings will beat Comfort... even avg selling price of gloves rise by 30%

You_mee, 2.42 next week? very fast liao...

theme play is switching from gloves to O&G ma....

uncle tricking you all...slowly disposing to enter back Dayang

this one is like a tremoring volcano....ready to blast anytime

if uncle dont comeback to Dayang next week...this one fly away just like Comfort from 0.90 to 2.30 now.....

if gloves avg selling price can rise by 15% to 20%, cant the chemical used in small quantities rise by 10%?

the chemicals are like spices used in small quantity for the bulk beef rendang (gloves) they make..

even 20% rise in chemicals price wont affect glove manufacturers cost...but it matters a lot for Luxchem

just work out the bottom line implication with such margin rise and see with 30% higher sales volume

China car sales mark first rise in nearly two years, mainly due to heavy trucks

12-May-2020

https://news.cgtn.com/news/2020-05-11/China-car-sales-mark-first-rise-in-nearly-two-years-QptUBit5W8/index.html

polyester resin mainly used for the surface finishing of trucks & cars should be back to normal, while raw material cost declines

Yu_mee, why dont you recommend those high ranking good enough stock

Upgrade PE by 1 and claim supply interuptions
Like that gloves stock also got supply interuption from Luxchem? And they also have less gloves demand from manufacturers due to covid shutdown?
Thought PE is fwd looking and resin/other chemical industry are recovering and benefitting from low raw mat cost from oil price decline

uncle coming back to O&G now..

Posted by kariwong9394 > May 15, 2020 12:43 PM | Report Abuse

15/05/2020 12:43 PM
what if uncle K, diam diam sell off like what had happened on Dayang,
all the smart investor sudah jadi anak kambing....

koon ah koon , koon ah koon
https://www.youtube.com/watch?v=ZOCqUC9a7wM


Dayang: The worst is over - Koon Yew Yin
https://klse.i3investor.com/blogs/koonyewyinblog/2020-03-18-story-h148...

Dayang Trend Reversal - Koon Yew Yin
https://klse.i3investor.com/blogs/koonyewyinblog/2020-03-31-story-h148...

its a clear message from Saudi, they want the price to be higher than US$ 30/brl

Oil price is not Turning Back!

time to whack the warrants

30% rise in revenue (before rise in avg selling price), will have explosive impact on profit

at current oil price Dayang should be minimum above 1.50

https://www.theedgemarkets.com/article/luxchem-seen-grow-exports-margins

i) Transform Master Sdn Bhd (TMSB) in the latex industry: The production is operating at nearly full utilisation rate with capacity remaining at 13,800 tonnes per annum. The group’s plan to increase TMSB’s capacity to 18,000 tonnes per annum by 3QFY19 has been delayed due to warehouse and labour constraints, with expansions slated to be completed by the end of 2019.

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

The above clearly shows that the expansion has NOT taken place on its qtr ending Dec 19.

And the expansion in 2020 will be:

= 18,000/13,800
= 30%

This will be shown on Q1 20'

Good write up from Sky is the Limit:

http://skyisthelimitskyisthelimit.blogspot.com/2017/04/next-growth-engines-of-luxchem-part-1.html

Follow by Luxchem's acquisition of Transform Master Sdn Bhd (TMSB) since April of 2016, TMSB has contributed to Luxchem's revenue and profit positively.


Who is Transform Master Sdn Bhd?
.................................

http://transformmaster.com.my/v1/

TMSB is a chemical manufacturing plant who mainly produce rubber latex chemical dispersion, latex processing chemicals, latex surfactant, dispersasant & specialty chemicals for latex industry.


Their plant is strategically located at Lumut Port, which is nearby to well known Malaysia oil and gas giant, SapuraEnergy Fabrication yard.


What is the reason behind for Luxchem to acquire Transform Master?
..................................................................

Which I believe Transform Master's main customer, YTY Group is the main driver behind. YTY is the medical glove manufacturer located in Perak and they are in aggressive expansion mode.


"Back to year of 2010, they have some of the most modern and automated lines in the industry. Our current production capacity exceeds 8.2 billion pieces of gloves a year"


YTY First GLove Factory Located at Lekir Perak

"By year 2012, our production capacity would have increased to 10.5 billion pieces a year" (Quoted from YTY Group Website)


The capacity towards 10.5 billion pieces of medical gloves was underpinned by their second factory which is located at Lumut Port, under the name of Green Prospect Sdn Bhd.


Now, YTY Group has further expand their capacity aggressively through their third plant located at Lumut Port too, just next to SapuraEnergy Fabrication yard. There is a huge parcel of land which allows YTY group DOUBLE UP their capacity easily.


I believe their third plant has started production but yet to fully operated. As you can see from photo, the plant is equipped with workers dormitories too. With the uninterrupted water supply in Perak and strategic location beside the Lumut Port, YTY Group is in the right direction to further expand their business globally.


As such, I believe Transform Master Sdn Bhd, as the sole supplier of Latex Processing Related Chemicals will continue benefited from the aggressive and stable development of YTY group, locally and regionally.

keyword - "sole supplier"

Luxury chemicals for condom, latex sex toys (all european ladies only use this during lockdown), and most importantly....

gloves to punch covid-19!



Posted by duitKWSPkita > May 14, 2020 9:35 PM | Report Abuse

wao..probability sifu is here..

What is Luxchem??? the mandi sabun Lux very wangi one?

RHB report 18 Feb 2020:

https://research.rhbtradesmart.com/attachments/81/rhb-report-my_luxchem-4qfy19_results-review_20200218_rhb-b-350989118756393355e4b34d840429.pdf

as we expect Luxchem Corp’s trading segment to benefit from higher demand from the glove-making sector – particularly in 1Q20 due to COVID-19. We also raise P/E to 14x from 13x, as we believe its significant overseas exposure is a plus, given the soft domestic economy.

..........

RHB need to revise the PE looking at gloves stock


Luxchem = 35% (revenue from glove companies) + 65 % others

as such 35% of Luxchem current market cap should trade at PE 50 at least

Required PE = 35% x PE50 + 65% x PE20

= PE 30

as such Luxchem at PE 30, should be trading at PE 30 x 4.2 cents

= 1.26
.......

https://www.ytygroup.com.my/

YTY's mission for over 30 years has been to keep frontline employees safe through the manufacture of high-quality, single-use Examination gloves. Our original corporate ethos around quality, service and value continues to drive us today, making us one of the largest and most reliable manufacturers of single-use Examination gloves in the world.

Today, YTY is one of the largest manufacturers of Nitrile Examination gloves, but also a leading supplier of Polychloroprene Examination gloves, which offer unique advantages relative to Nitrile gloves. Beyond single-use Examination gloves, YTY offers single-use Surgical solutions as well, available in both the Polychloroprene and Polyisoprene synthetic polymers.

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

YTY Increases Its Medical Glove Donations During the COVID-19 Crisis
Wednesday, April 1, 2020

https://www.ytygroup.com.my/yty-increases-medical-glove-donations-during-the-covid-19-crisis/

the competitors you mentioned dont supply latex chemicals

Transform Master (TMSB) - fully Owned by Luxchem, supplies chemical to gloves industry

http://transformmaster.com.my/v1/

http://transformmaster.com.my/v1/index.php/product-service/latex-compounding-chemicals

We are focusing on rubber latex industry include latex glove, latex toys, latex foam, latex thread, catheter, condoms, finger cots, balloons, latex exercise bands & etc. We also provide OEM service, design formulation for our customer based on customer requirements.

..........

The chemical consumption will be directly proportional to the gloves demand

Nice write up by "Sky is the limit":

http://skyisthelimitskyisthelimit.blogspot.com/2017/04/next-growth-engines-of-luxchem-part-1.html

No other company as far as i know in Malaysia

Posted by tailiew > May 14, 2020 9:07 PM | Report Abuse

@probability

What's other listed company that is supplying resin of the use by Glove?

Is it fair to use such a high PE just because the Glove Company are now selling at high PE? Raw material / chemical of these aren't are competitive in price?

the last report for Luxchem was for qtr ending Dec 19


i am not expecting considerable margin expansion even on qtr ending Mar 20' just like what i foresee for the gloves stocks

market is seeing far ahead for gloves stocks

Luxchem produces a specialized chemical for nitrile gloves



Posted by Ravi Kumar > May 14, 2020 8:57 PM | Report Abuse

For a company that makes 700 to 800 million is sales, 35 million PBT is really nothing to shout about. If the speculation is that they are supplying this and that to the glove makers well the financials will show. Otherwise, ..... They aren't the only supplier of chemicals used by the glove makers. The margins show it.

i was crazy on Dufu too...

Aminvest also published the above report in Feb 20 considering the risk in disruption in supply from China. But now China is up and running like no other country.

Aminvest published the above report on 18Feb 2020 before really knowing at what PE Gloves stocks will be trading in March, April and now May...

https://www.amequities.com.my/documents/20126/0/Luxchem+Corporation+200218.pdf/5b2b4b28-e743-3e69-5b70-2c14b008e21e?t=1581992694717

some gloves stocks are having PE70 plus, while every single gloves they make need the specialized chemical from Luxchem

the gloves makers still need to compete among each other , while Luxchem has monopoly power to dictate the price...

as we expect Luxchem Corp’s trading segment to benefit from higher demand from the glove-making sector – particularly in 1Q20 due
to COVID-19. We also raise P/E to 14x from 13x, as we believe its significant overseas exposure is a plus, given the soft domestic economy.

..........

RHB need to revise the PE looking at gloves stock


Luxchem = 35% (revenue from glove companies) + 65 % others

as such 35% of Luxchem current market cap should trade at PE 50 at least

Required PE = 35% x PE50 + 65% x PE20

= PE 30

as such Luxchem at PE 30, should be trading at PE 30 x 4.2 cents

= 1.26
.......

https://research.rhbtradesmart.com/attachments/81/rhb-report-my_luxchem-4qfy19_results-review_20200218_rhb-b-350989118756393355e4b34d840429.pdf

https://research.rhbtradesmart.com/attachments/81/rhb-report-my_luxchem-4qfy19_results-review_20200218_rhb-b-350989118756393355e4b34d840429.pdf

as we expect Luxchem Corp’s trading segment to benefit from higher demand from the glove-making sector – particularly in 1Q20 due
to COVID-19. We also raise P/E to 14x from 13x, as we believe its significant overseas exposure is a plus, given the soft domestic economy.

..........

RHB need to revise the PE looking at gloves stock


Luxchem = 35% (revenue from glove companies) + 65 % others

as such 35% of Luxchem current market cap should trade at PE 50 at least

Required PE = 35% x PE50 + 65% x PE20

= PE 30

as such Luxchem at PE 30, should be trading at PE 30 x 4.2 cents

= 1.26
.......

https://research.rhbtradesmart.com/attachments/81/rhb-report-my_luxchem-4qfy19_results-review_20200218_rhb-b-350989118756393355e4b34d840429.pdf

as we expect Luxchem Corp’s trading segment to benefit from higher demand from the glove-making sector – particularly in 1Q20 due
to COVID-19. We also raise P/E to 14x from 13x, as we believe its significant overseas exposure is a plus, given the soft domestic economy.

..........

RHB need to revise the PE looking at gloves stock


Luxchem = 35% (revenue from glove companies) + 65 % others

as such 35% of Luxchem current market cap should trade at PE 50 at least

Required PE = 35% x PE50 + 65% x PE20

= PE 30

as such Luxchem at PE 30, should be trading at PE 30 x 4.2 cents

= 1.26
.......

Transform Master (TMSB) - Owned by Luxchem, supplies chemical to gloves industry

http://transformmaster.com.my/v1/

http://transformmaster.com.my/v1/index.php/product-service/latex-compounding-chemicals

We are focusing on rubber latex industry include latex glove, latex toys, latex foam, latex thread, catheter, condoms, finger cots, balloons, latex exercise bands & etc. We also provide OEM service, design formulation for our customer based on customer requirements.

..........

The chemical consumption will be directly proportional to the gloves demand

Reason serba's share price has not risen is because its unable to mobilize its service engineers internationally (Qatar, UAE, Bahrain & Saudi)...due to flight restrictions (total halt).

Once this resumes, it can then continue its international service business

This is not the case for Dayang. Dayang should be able to implement all of its services to Petronas at the moment.

Reason serba's share price has not risen is because its unable to mobilize its service engineers internationally (Qatar, UAE, Bahrain & Saudi)...due to flight restrictions (total halt).

Once this resumes, it can then continue its international service business

This is not the case for Dayang. Dayang should be able to implement all of its services to Petronas at the moment.

Calvin, suggest you go back to Luxchem

Ethanol is a product can be made by many industrial in large quantities. Its like a commodity.

Try to make a complete, comprehensive article covering all aspects of Luxchem

“Additionally, we are providing two million medical gloves within Indonesia through our PT Medisafe Technologies subsidiary based in Medan, Indonesia. One million medical gloves have been donated to Pelang Merah Indonesia (PMI), a member organization of the International Federation of the Red Cross & Red Crescent Societies, who will ensure these gloves get distributed to PMI centers across the country. A further one million gloves are being sent to the Government of Indonesia, who has procured them on priority to assist healthcare specialists in Jakarta, the nation’s capital, and in other areas within Indonesia especially hard hit by COVID-19.”

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

The demand from Indonesia will never end due to Covid 19......

https://www.ytygroup.com.my/

YTY's mission for over 30 years has been to keep frontline employees safe through the manufacture of high-quality, single-use Examination gloves. Our original corporate ethos around quality, service and value continues to drive us today, making us one of the largest and most reliable manufacturers of single-use Examination gloves in the world.

Today, YTY is one of the largest manufacturers of Nitrile Examination gloves, but also a leading supplier of Polychloroprene Examination gloves, which offer unique advantages relative to Nitrile gloves. Beyond single-use Examination gloves, YTY offers single-use Surgical solutions as well, available in both the Polychloroprene and Polyisoprene synthetic polymers.

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

YTY Increases Its Medical Glove Donations During the COVID-19 Crisis
Wednesday, April 1, 2020

https://www.ytygroup.com.my/yty-increases-medical-glove-donations-during-the-covid-19-crisis/

Luxchem Corporation owned Transform Master:

http://transformmaster.com.my/v1/

We are focusing on rubber latex industry include latex glove, latex toys, latex foam, latex thread, catheter, condoms, finger cots, balloons, latex exercise bands & etc.

Luxchem Corporation owned Transform Master:

http://transformmaster.com.my/v1/

We are focusing on rubber latex industry include latex glove, latex toys, latex foam, latex thread, catheter, condoms, finger cots, balloons, latex exercise bands & etc.

Luxchem Corporation owned Transform Master:

http://transformmaster.com.my/v1/

We are focusing on rubber latex industry include latex glove, latex toys, latex foam, latex thread, catheter, condoms, finger cots, balloons, latex exercise bands & etc.

http://www.bursamarketplace.com/mkt/tools/research/ch=research&pg=research&ac=176611&bb=180088

Next Growth Engines of Luxchem

http://skyisthelimitskyisthelimit.blogspot.com/2017/04/next-growth-engines-of-luxchem-part-1.html

The first main growth engine of Luxchem- Acquisition of Transform Master

Who is Transform Master Sdn Bhd?
................................

TMSB is a chemical manufacturing plant who mainly produce rubber latex chemical dispersion, latex processing chemicals, latex surfactant, dispersasant & specialty chemicals for latex industry.

What is the reason behind for Luxchem to acquire Transform Master?
.................................................................

Which I believe Transform Master's main customer, YTY Group is the main driver behind. YTY is the medical glove manufacturer located in Perak and they are in aggressive expansion mode.


Now, YTY Group has further expand their capacity aggressively through their third plant located at Lumut Port too, just next to SapuraEnergy Fabrication yard. There is a huge parcel of land which allows YTY group DOUBLE UP their capacity easily.

I believe their third plant has started production but yet to fully operated. As you can see from photo, the plant is equipped with workers dormitories too. With the uninterrupted water supply in Perak and strategic location beside the Lumut Port, YTY Group is in the right direction to further expand their business globally.

TOP REASONS WHY LUXCHEM (5143) COULD BE THE SUPERSTOCK OF THE GLOVE BULL RUN

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-04-18-story-h1506021194-TOP_REASONS_WHY_LUXCHEM_5143_COULD_BE_THE_SUPERSTOCK_OF_THE_GLOVE_BULL_.jsp

LUXCHEM VERSUS COMFORT GLOVES, RUBBEREX, TOP GLOVE, HARTA, SUPERMAX (Compare & contrast)

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-04-17-story-h1506016450-LUXCHEM_VERSUS_COMFORT_GLOVES_RUBBEREX_TOP_GLOVE_HARTA_SUPERMAX_Compare.jsp


LUXCHEM (5143) A 5 STAR RATED STOCK DUE TO TRIPLE FACTORS OF COVID 19, LOW OIL PRICE & PROXY TO ALL GLOVES

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-04-20-story-h1506050113-LUXCHEM_5143_A_5_STAR_RATED_STOCK_DUE_TO_TRIPLE_FACTORS_OF_COVID_19_LOW.jsp

TOP REASONS WHY LUXCHEM (5143) COULD BE THE SUPERSTOCK OF THE GLOVE BULL RUN

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-04-18-story-h1506021194-TOP_REASONS_WHY_LUXCHEM_5143_COULD_BE_THE_SUPERSTOCK_OF_THE_GLOVE_BULL_.jsp

LUXCHEM VERSUS COMFORT GLOVES, RUBBEREX, TOP GLOVE, HARTA, SUPERMAX (Compare & contrast)

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-04-17-story-h1506016450-LUXCHEM_VERSUS_COMFORT_GLOVES_RUBBEREX_TOP_GLOVE_HARTA_SUPERMAX_Compare.jsp


LUXCHEM (5143) A 5 STAR RATED STOCK DUE TO TRIPLE FACTORS OF COVID 19, LOW OIL PRICE & PROXY TO ALL GLOVES

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-04-20-story-h1506050113-LUXCHEM_5143_A_5_STAR_RATED_STOCK_DUE_TO_TRIPLE_FACTORS_OF_COVID_19_LOW.jsp