Very Bad. 500 CNC machines gone. Production might stop 9 mths.
Their other factory only have 200 CNC machines to support.

The order will go to Dufu or JCY...

500 CNC machines damage.
Their factories in other location only have 200 CNC machines to support.

Happy Problem for Dufu.

TQ for the report.

maybe they targeting factory in Thailand.

http://www.chinapress.com.my/20171019/%E7%BE%8E%E5%9C%8B%E5%8A%A0%E5%B7%9E%E7%88%86%E7%99%BCa%E8%82%9D%E7%82%8E%E7%96%AB%E6%83%85-19%E6%AD%BB%E9%80%BE500%E4%BA%BA%E6%84%9F%E6%9F%93/

Glove factories in Msia:

Sel=60
Perak=18
NS=10
Penang=6
Melaka=7
Johor=2
Kedah=2
Kelantan=1.

In May, TopGlove bought 2 factories, 1 in Muar & 1 in NS (both have strong market in China)

And TopGlove priority now is to expand China market and China will be the main growth for glove makers in 10yrs time. So its target should be glove makers with major export to China.

Currently Glove usage per year per capita:
a) USA = more than 130pcs
b) China = 5pcs

Exam glove vs Surgical glove.

In 2015, world demand for :
Exam & Disposable glove = 190bil pcs
Surgical glove = 2bil pairs.

Riverstone. TTL share issued = 742m w RAFFLES NOMINEES (PTE) LIMITED as major SH w 380m shares or 51.23%

Riverstone FY2016 rev=650m w NP=120m .

1HFY17 Rev=420m w NP=60m.

Possible Riverstone ??

Pls be aware that not many companies in Msia have mobile wallet license from BNM.

For those who want to give up, here is the bad news = North & Central Vietnam hit by devastating floods which could coz huge damage on tower equipment if the built location not planned properly during construction time.


For those who is long term investors, here is the good news = China Tower going to list in CQ4'17 and this will boost the tower industry..

I am waiting at 0.25, then 0.23.

http://www.capacityconferences.com/Myanmar-Connect-Agenda

https://www.mmtimes.com/news/aseans-largest-packaging-firm-start-thilawa-operations-next-year.html

马云 coming 1st week of Nov. Be ready for Tech counters rally during Budget time

Top Glove QR will be out tomorrow. All big funds are taking this opportunity to push up glove counters. But EPF is selling TopGlove.

Is it a trap??

China Tower listing will give hints for edotco and when edotco listing, big boost to OCK.

Why inventory is so high. Below is the possibility...

[a] Seath inventory was US$17,960 (insignificant).

[b] Increase of RM50mil inventory could be purchase of material to support balance telenor 300+ towers but build was deferred due to so call location study. RM50mil/300 towers = RM166k/tower.

And these RM50mil material can be used to support others tower build (MyTel=300towers) as well.
So it should be able to deplete in FQ3 & 4.

http://www.thestar.com.my/business/business-news/2017/10/11/telcos-shares-under-pressure/

Fund is running away from telco business.
Where are they heading?? Tower business??

http://www.thestar.com.my/business/business-news/2017/10/07/brothers-adapting-to-changes-while-continuing-late-fathers-legacy/

Naza group in tower bs as well.

Still higher than PP px. Show time...

http://markets.businessinsider.com/news/stocks/Global-Protective-Gloves-Market-to-Reach-USD-11-26-Billion-by-2022-Increasing-Demand-for-Disposable-Healthcare-Gloves-1002233544

COMFORT GLOVE is in the list....

http://www.rubberasia.com/2017/03/28/indian-glove-industry-must-raise-capacity-g-narayana-pillai/

reading pleasure.

Expect to hit 430mil Rev this FY. Close to TopGlove 2004 FY result.
Can refer to TopGlove 2004 AR for reference.

In terms of Revenue/ Equipment& machine, Comfort is the highest.

Fund tend to squeeze out 3rd party before rally. Just look at today 28 sen transaction level.

When price up above 0.905, some trapped investors sold their share. Good sigh.

Today price push down very effective to kill the trapped shorten retailers..

Last week Supermx taiko ST in media hinted that latex price will drop to 450 in mid Oct.

I think already clear 7788 liao. Lunar 15Aug coming

Auto play now. 1 share per deal.

http://www.sinchew.com.my/node/1685757/%E9%83%91%E9%87%91%E5%8D%87%EF%BC%9A%E7%BE%8E%E5%81%9C%E5%94%AE%E8%81%9A%E4%B9%99%E7%83%AF%E6%89%8B%E5%A5%97%EF%BC%8E%E5%A4%A7%E9%A9%AC%E8%83%B6%E6%89%8B%E5%A5%97%E5%87%BA%E5%8F%A3%E5%A4%A7%E5%A2%9E

Volume is huge and rotational play.

Last 2 weeks fund using increase latex price n strong RM to push down glove counters.

Now:
Funds is using poor iphone 8 sales result to push down Tech stock.
Using increase oil price to push up oil counters.

Those trapped retailers between 975-990sen left not much.
Those transaction between 995sen-1010sen mainly by fund goreng...

Mother will always more than 90sen.

Fund start flow to glove counters again as they expect TopGlove QR will be released around 10th Oct. Result expect to be 20%-27% up Y-Y in terms of Rev n NP.

Be ready...

http://www.theedgemarkets.com/article/edotco-takes-acquisition-breather-after-us940m-pakistan-deal

In FQ1'08, their gross profit margin was 16%.

This is due to low latex price that purchased in Nov'17 (540), Dec (616) & Jan'18 (711) and equal 3 mths average = 622.

Below we can judge the short term impact on latex cost (with assumption if company order latex today, they will input into production 3 months later).

FQ2FY18 (May, Jun, Jul)
For May, Jun & Jul material input into production, they used latex that purchased in Feb, Mar & Apr.
So average monthly latex price for Feb (798), Mar (732) & Apr (640) equal to 3mth average = 723.
So we can consider their ave latex input price for FQ2FY18 is 723.

FQ3FY18 (Aug, Sep , Oct)
Based on the above, we might able to judge latex input price for FQ3 result which will be announced in Dec'17.
Ave latex price for May (630), Jun (573) & Jul (517) equal to 3 mths average = 573
And it is a drop of 26% input material cost compare to FQ2.

If this calculation work, then we can expect FQ3 gross margin will be higher than FQ2.

So for FQ3 ( end-Oct) 6 new lines should be completed with 5 lines running full and 1 line under final inspection:
Expect Rev = 125mil.
Gross Profit = 17mil (14%)


GOOD LUCK

Compare Q-Q to see the improvement:

a) Selling cost =1,311 (was 1,734)
b) Admin cost = 2,696 (was 3,800)
c) Other operating income = -24 (was 698)
d) Operating CF = 6,743 (was -6,141)
e) Buy prop, plant, equip = 15,727 (4 new lines should be ready)

OPERATING CF turn to POSITIVE. GOOD JOB.

So basically drop in NP was impacted by the cost of sales (which is Gross Profit) as explained in QR. The rest of the expenses were very well monitored and controlled.

Very Good management team.

http://www.enanyang.my/news/20170914/%E9%9C%80%E6%B1%82%E5%BC%BA%E5%8A%B2-%E7%A7%AF%E6%9E%81%E5%A2%9E%E4%BA%A7br-%E6%89%8B%E5%A5%97%E4%B8%9A%E5%87%80%E5%88%A9%E8%BF%98%E8%83%BD%E5%86%8D%E6%B6%A8/

Market is start getting hot. yesterday vol was 3.66bil and targeting 仙股。

Based on estimated new 8 lines completion timing:

4 new lines should be completed. From these 4 lines, 3 lines should be running and 1 lines pending for final FA approval from certain customers.

My guest on FQ2'18 result:
Rev=105mil
NP = 12mil (11.4%)
EPS = 2.15 sen.

Mr Cheang Phoy Ken is very good in cost controlling and the glove quality is very well known in high end market.
That why Supermax bought SealPolymer at huge premier just to get into high end customer during 2004.

http://www.chinapress.com.my/20170912/%E9%A2%B6%E9%A2%A8%E5%BD%B1%E9%9F%BF%E5%8E%9F%E6%96%99%E7%94%9F%E7%94%A2-%E6%89%8B%E5%A5%97%E5%B0%87%E6%BC%B2%E5%83%B9%E6%9C%80%E5%A4%9A12/

https://ww2.frost.com/files/4514/8879/5993/ASEAN_Telecommunications_Towers_Market__EDT_AG_with_source_lines_with_edotco_REVISED_TO_PUBLISHING.pdf

Reading pleasure

Foreign fund coming in n start buying...

http://www.chinapress.com.my/20170906/%E9%A6%AC%E8%82%A1%E6%8F%9A%E5%8D%87%E7%A9%BA%E9%96%93%E6%9C%89%E9%99%90-%E6%AC%A1%E5%AD%A3%E8%B2%A1%E5%A0%B1%E5%A4%9A%E4%B8%8D%E9%81%94%E6%A8%99/

General CQ2 QR is a bit disappointed. Big fund will start searching for growth stock and OCK mb one of them.

http://www.chinapress.com.my/20170906/%E9%A6%AC%E8%82%A1%E6%8F%9A%E5%8D%87%E7%A9%BA%E9%96%93%E6%9C%89%E9%99%90-%E6%AC%A1%E5%AD%A3%E8%B2%A1%E5%A0%B1%E5%A4%9A%E4%B8%8D%E9%81%94%E6%A8%99/

General CQ2 QR and basically disappointed.
However, big fund will start searching for high growth companies and CG can be one of them.

just independent director. not the owner.

http://www.thestar.com.my/business/business-news/2017/08/30/axiata-close-to-pakistan-deal/

read careful on paragraph 4.