RHB EBITDA estimate for Supermax is RM643m FY21 and RM829 FY22. Don't have 1 billion leh

Can't have rational discussions here anymore. Everyone either crazy pro glove or fear mongering.

Any guesses for TG results? If it produces Harta-like results i.e. below expectations, we may have a sell down. But I'm guessing since it bought forward the QR announcement by a week and immediately after last week's haircut that it should be pretty good. I'm assuming earlier QR and right after haircut so that the valuation will look more than reasonable. Why it matters for Supermax? TG is the taikor so will affect all glove counters.

There are many call warrants littered across the 2nd half of the year for the big 4 glove stocks. In the past, banks will 'engineer' sell downs nearing the expiry of the call warrants to minimize their losses. Can we assume that since the banks have successfully engineered the sharp drop last week to remove/buyback the call warrants the next few months to December should be less eventful/volatile? This may also explain why TG's QR result date has moved one week earlier (in the past, always 3rd week June). This also brings me to assume that TG's results should be good (hence engineer the correction before results), not an anticlimax like Harta's previously. Would be interested to hear everyone's thoughts on this.

idkdontaskmelol @mapeyeo1, IDSS lifting after 30 June has been removed. It is now suspended until further notice, no news on actual date yet.

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Got link to that news?

sunra88 wow. i didnt know TG's capacity was 78.7 P.A currently, by 3rd Quarter 2020, add another 7.7 bn.

Its capacity is enormous. compared with other glove manufacturers.
09/06/2020 3:39 PM

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Malaysia has only a few industries where they (Msian companies) are Top 3 in the world. Glove is one of the few. Others I can think of is palm oil (got competition from substitute i.e. soy, whereas gloves no substitute). LNG shipping is probably the other one (MISC). So this ensures government won't do things to stifle glove sector if not this is equivalent to killing the golden goose...

Basically the bankers' thought process before the margin fiasco last week: "Why do we loan all this money to uncle auntie to invest in gloves and earn single digit interest rate on it? We should just take back the funds, buy glove stocks ourselves and earn 50% or more!" What does that tell you about the prospects of glove stocks especially AFTER it has already risen so much?

CGS-CIMB up the ante on Top Glove: TP RM25.00 Highest among the consensus https://rfs.cgs-cimb.com/api/download?file=1AA78AE8-F041-4843-B426-5CA2E71FC703

Wow lots of new people suddenly. One month ago the TG forum moves quite slow, most people chat in Supermax forum. Enjoy the ride (up)!

Covid cases coming back up in South Korea. With all the black lives matter protests worldwide, it will definitely increase cases in 2 weeks time. This will make a 2nd wave in Autumn/Winter more likely

South Korea grapples with an uptick in cases
9:45 a.m. Singapore time — South Korea is witnessing an increase in the number of coronavirus cases after social distancing measures were relaxed.

Over the weekend, more than 100 new cases were recorded while 38 new cases were posted on Monday. Recent cases have been traced to nightclubs, religious services and a logistics center. Most of them are from the Greater Seoul area.

South Korea was one of the worst hit Asian countries early in the pandemic but took active and intensive steps to contain the outbreak, winning the country praise internationally. — Huileng Tan

Anyone heard anything about 9 June MCO-extension decision yet?

kiddingright where are those sozai that keep posting negative news yesterday? haha

Those are not sozai. Those are the ones working for the sharks spreading fear so ikan bilis will panic and sell. It is as simple as this: People who have already sold do not come back into forum to warn you (unless they want to buy cheap again).

lyetc75 QR result out 11 JUNE....must be very very good...orelse why early!!!

Is 11 Jun confirmed? If true, probably to profit from possible end of MCO announcement on 9 Jun which may cause sell off 10 Jun, then sharks buy cheap, then 11 Jun shoot up after results.

Possible false breakout. Probably close little change today.

staypositive Next week Thursday Top Glove releasing QR result >>> Are you sure of the date? Past few years results always announced around 18 June i.e. the 3rd week of June.

Sharks' army have come to forum to spread fear already so brace yourself for another round.

Will go down first in morning. Hopefully at end of day close like TG yesterday. Tomorrow restart.

No more passing cost savings to customers. Now immune to strong MYR, maybe higher oil price also immune

"Interestingly, the rush for glove shares has changed the dynamics to the point where AmBank Research opined that even a stronger ringgit — a bane for glove makers due to its nature as exporting business — will expand margins rather than squeeze it because “unlike pre-Covid-19 times, cost savings are not passed through to customers due to supply constraints”."

Today should be the last attempt by sharks to flush out ikan bilis and buy cheap. Just hold tight. Storm is almost over.

Good luck tomorrow guys. Hopefully go sideways or marginal decline before getting back on track on Friday. Stop complaining about IB and the injustice - we ikan bilis can't change anything, just understand the (unwritten) rules of the game. Remember the sharks are partly paying for this ride. If they don't make $, they won't push up. Dumb money got off the train, smart money got on. Book your seats, 2nd half almost about to start.

Tomorrow sideways. Friday go back up.

If you slept through morning and only woke up now you would have thought a minor correction had taken place. Congrats to those who got cheap deals.

All the fear mongers coming in now most likely indicates that Top Glove's results in late June will be solid gold.

CGS-CIMB, meanwhile, said in its report on Supermax that its management was confident of raising its ASPs by 10% each month from June until December 2020, compared to its previous expectation of a 10% monthly increase from June to September 2020.
“In order to ensure that there will be no cancellation of orders, Supermax is requesting that its customers pay deposits ranging from 30%-50% in advance to lock in their orders. This is particularly for orders from non-recurring customers and/or spot buyers,” CGS-CIMB said.
CGS-CIMB has maintained its add call on Supermax with a target price of RM9.80.

Holding since November. Not time to sell yet. You guys think investing so easy everyday go up 10-20% meh. One 5% drop and you guys run like rats. This move by IB is to get rid of the weak ones and also for the IB to collect low. Bear in mind they are partly paying for our ride. If they can't make they won't push.

Typical IB strategy to sell high and then make news to scare people to collect low. Just hold lah.

Typical IB strategy to sell high and then make news to scare people to collect low. Just hold lah.

Wow, I only guess the analyst is lenglui. Turns out to be true

Best time to get in if you're latecomer. Make sure you can hold until August at least.

Today sharks will try to engineer a correction to collect cheap.

Another target above RM20

PETALING JAYA: Renewed optimism on the rubber glove and healthcare sector saw another fierce rally at play, with the FBM KLCI swept up alongside other regional markets as an impending global shortage of gloves is anticipated.
Investors continued to chase glove-related and healthcare stocks with some hitting limit-up.
Among the stocks that hit limit-up included HLT Global Bhd, Adventa Bhd, LKL International Bhd and Careplus Group Bhd.
Hartalega Holdings Bhd rose 64 sen to RM13.18, bringing its market capitalisation to RM44.62bil, and now making it the sixth largest company on Bursa Malaysia.
The momentum started in the morning when Macquarie Research issued a report on Top Glove Corp Bhd with a new target price of RM20.50 for the counter.

The world’s largest glove producer surged by some RM2.24 to RM15.54 at yesterday’s closing.
Macquarie’s new target price was based, among others, on Top Glove allocating 10% of its capacity capacity for spot orders, and higher average selling prices versus its initial guidance.
As of midday, Bursa was up 15.14 points to 1,488.39. Nonetheless market breadth was negative.
The FBM KLCI ended the day up 16.89 points to 1,490.14 on volume of 10.31 billion shares valued at RM6.73bil.
The FBM KLCI was already showing bullish signs last week, as it added 36.49 points or 2.5% for the week.

Trading value was a hefty RM9.3bil, a new record for Bursa Malaysia, while trading volume was nine billion shares.
OANDA senior market analyst for Asia Pacific, Jeffrey Halley said that Asia is off to a “rollicking start to the week with equities performing strongly and currency markets rotating out of haven US Dollars.”
He said the turbo-charging of bullish sentiment has multiple drivers starting with President Donald Trump.
“Although scenes showing numerous riots across the USA dominated headlines this weekend, it is what President Trump announced on Hong Kong on Friday that really mattered to financial markets; or more correctly, what he didn’t say,” said Halley.
As expected, the US President withdrew Hong Kong’s special status over the new China imposed security law.

“What he did not do, however, was withdraw from the US-China phase one trade agreement signed in January.
“Nor did he impose sanctions on Chinese officials or persons connected to the regime.
“The collective sigh of relief in Asia is palpable this morning,” said Halley.
Meanwhile CGS-CIMB head of retail research Kong Seh Siang’s longer term view remains bearish and hence he has kept to his “sell on strength” strategy for long term traders until now.
“We have earlier mentioned that retailers appeared to have showed their hand with the recent ‘all-in’ (in April and May) and historically, this group of traders rarely led the ‘recovery’ phase,” explained Kong.

He believes that the bullish bus will only head to its destination when it is ‘empty’ and not filled to the brim – contrary to popular market beliefs.
A pullback sometime in the near future is going to shake out the ‘weak hands‘ and leave only the ‘strong hands’ to ride on the upcoming bullish bus.
Kong feels that a more reliable strategy would be to buy when the market is trending up, for example when it is above its 200-day exponential moving average.
According to MIDF Research, international investors sold RM663.8mil net of local equities for the week ended May 29, compared to the RM714.7mil disposed in the week before.
For the month of May 2020, foreign investors disposed RM3bil net, the second highest monthly foreign net outflow so far this year after March.

This brings the year-to-date foreign net outflows from Malaysia to RM13.3bil which is still the third smallest foreign net outflow among the seven Asian markets we monitor.
In terms of participation, only foreign investors saw a substantial weekly increase in their average daily traded value (ADTV) to reach RM3.5bil.
This was the largest weekly ADTV since the week ended June 1, 2018.

Everyone waiting for the video of the Maybank briefing? Hope sparkling eyes analyst is lenglui haha

As mentioned last week, next few weeks will be all about Top Glove and Comfort. July onwards will be back on Supermax.

Why are you sharing 2018 news?

Top Glove Singapore SGD6.68 >RM20 already

Wow, I want to see the sparkling eyes also

Jack Khan... this Zoom briefing accessible by everyone? Got link?

Supermax price growth should slow down this month since target price reached (unless all the unofficial target prices by various sifus are followed by big investors). Action will be focused on Top Glove and Comfort since their results coming out end of month with TP RM20. Supermax will speed up again in July before August results.

Reported abuse haha.

I did warn u guys early this morning that it will be a false breakout, breach 8 but close below 8.

It is a mad mad glove makers’ market
KUALA LUMPUR (May 29): The craze for glove manufacturers gains strength by days as their unprecedented hefty premium valuations show. The higher the share price climbs, the stronger the buying interest.

Hartalega Holdings Bhd and Top Glove Corp Bhd are currently among the top 10 largest stocks on Bursa Malaysia in terms of market capitalisation (cap). Their market cap have overtaken Digi.Com Bhd, Axiata Group Bhd and Nestle Malaysia Bhd.

What has gone up, it will climb higher?
Despite the sharp rise in share prices, analysts do not think the current share prices have factored in all the good news.

In short, in their view, glove makers will earn a lot higher profits so share prices should also be a lot higher than current price.

With optimistic prospects ahead supported by expectation of strong surge in sales volume given the Covid-19 pandemic, and wider profit margin, glove analysts are busy with revising their forecasts and target prices as the rally continues.

In a research note today, Maybank Kim Eng analyst Lee Yen Ling wrote that “massive earnings explosion in coming quarters will throw brokers’ forecasts out of the window”.

Lee has raised its target price of Top Glove to RM20, implying a 49% share price increment from the current price of RM13.38 amid expectation of higher average selling prices (ASPs) and exponential growth on glove consumption worldwide.

Maybank KimEng raised its earnings per share forecast by 37% for the financial year ending Aug 31, 2020 (FY20), 180% for FY21 and 18% for FY22 to impute for ASP hikes and spot orders until 1QFY21 (September to November 2020).

“Our earnings forecasts could still be conservative as glove players might continue to raise ASPs until June 2021,” said Lee.

“Comparing the confirmed ASPs in September 2020 against January, the ASPs have increased 40-50%. Though the hikes are steep, the ex-factory price for a pair of gloves is just six US cents. This is still very cheap for the developed markets, for example US and Europe.

Lee anticipates Top Glove’s net profit to soar to RM3.2 billion in FY21 compared with forecast of RM1.1 billion in FY20. However, Top Glove’s net profit is expected to shrink to RM663 million.

If Top Glove is able to grow its market cap by 49% to RM52 billion, this would imply that the glove manufacturer will be the fourth largest listed company in Malaysia, surpassing chemical giant Petronas Chemical Group and hospital operator IHH Healthcare, should their share prices remain underperforming.

So far, 2020 is a prosperous year for glove makers as all of their fortune has leapt by a large quantum.

To put into perspective, Hartalega's market cap has more than doubled by RM19.02 billion to RM34.93 billion from its initial market cap of RM18.48 billion at the beginning of the year. It is currently ranked at 7th place among the largest market cap Malaysia companies.

The meteoric rise on Top Glove, its market cap ballooned by RM22.9 billion in value – the increment is equivalent to Dialog Group Bhd’s market cap of RM21.36 billion.

With a market cap of RM34.93 billion, Top Glove is currently the 10th largest Malaysia listed company.

What a turn of fortune to see the glove manufacturer leaping from second bottom market cap placing among the KLCI constituents to the current standing.

Year-to-date (YTD), out of the thirty KLCI constituents, there are only five companies in the positive zone (see chart).

Among them, Dialog’s market cap has increased by RM1.92 billion, while Petronas Group Bhd and Maxis Bhd are able to creep up a meagre RM831 million and RM78 million in valuations respectively.

A back of envelope calculation, an aggregate of RM131 billion of market cap has evaporated among the 30 component stocks.

Other than the number of companies that have lost their valuations YTD, the actual amount of market cap lost is remarkably hefty with the aggregate amount currently at RM131 billion.

A rising tide lifts all boats. Beside the two big boys, other glove makers' share prices are rocketing to new peaks as well.

Supermax Corporation Bhd's market cap jumped by more than four times or RM8.02 billion to RM9.8 billion — which propelled its market cap ranking to 34th place from 123rd place at the beginning of the year.

As for Kossan Rubber Industries Bhd, currently the 33rd largest from 61st previously, it saw its market cap more than doubled by RM5.8 billion to RM11.12 billion.

The market cap phenomenon is more extreme for the small cap glove makers as most have soared exponentially.

Comfort Gloves Bhd's market cap more than tripled, or rose by RM1.57 billion in value, to RM2.03 billion, followed by Rubberex Corporation Bhd, whose market cap leapt by about six times or RM815 million to RM951 million, and Careplus Group Bhd, which jumped by more than six times or RM563 million to RM648 million.

It is a mad mad glove makers’ market
KUALA LUMPUR (May 29): The craze for glove manufacturers gains strength by days as their unprecedented hefty premium valuations show. The higher the share price climbs, the stronger the buying interest.

Hartalega Holdings Bhd and Top Glove Corp Bhd are currently among the top 10 largest stocks on Bursa Malaysia in terms of market capitalisation (cap). Their market cap have overtaken Digi.Com Bhd, Axiata Group Bhd and Nestle Malaysia Bhd.

What has gone up, it will climb higher?
Despite the sharp rise in share prices, analysts do not think the current share prices have factored in all the good news.

In short, in their view, glove makers will earn a lot higher profits so share prices should also be a lot higher than current price.

With optimistic prospects ahead supported by expectation of strong surge in sales volume given the Covid-19 pandemic, and wider profit margin, glove analysts are busy with revising their forecasts and target prices as the rally continues.

In a research note today, Maybank Kim Eng analyst Lee Yen Ling wrote that “massive earnings explosion in coming quarters will throw brokers’ forecasts out of the window”.

Lee has raised its target price of Top Glove to RM20, implying a 49% share price increment from the current price of RM13.38 amid expectation of higher average selling prices (ASPs) and exponential growth on glove consumption worldwide.

Maybank KimEng raised its earnings per share forecast by 37% for the financial year ending Aug 31, 2020 (FY20), 180% for FY21 and 18% for FY22 to impute for ASP hikes and spot orders until 1QFY21 (September to November 2020).

“Our earnings forecasts could still be conservative as glove players might continue to raise ASPs until June 2021,” said Lee.

“Comparing the confirmed ASPs in September 2020 against January, the ASPs have increased 40-50%. Though the hikes are steep, the ex-factory price for a pair of gloves is just six US cents. This is still very cheap for the developed markets, for example US and Europe.

Lee anticipates Top Glove’s net profit to soar to RM3.2 billion in FY21 compared with forecast of RM1.1 billion in FY20. However, Top Glove’s net profit is expected to shrink to RM663 million.

If Top Glove is able to grow its market cap by 49% to RM52 billion, this would imply that the glove manufacturer will be the fourth largest listed company in Malaysia, surpassing chemical giant Petronas Chemical Group and hospital operator IHH Healthcare, should their share prices remain underperforming.

So far, 2020 is a prosperous year for glove makers as all of their fortune has leapt by a large quantum.

To put into perspective, Hartalega's market cap has more than doubled by RM19.02 billion to RM34.93 billion from its initial market cap of RM18.48 billion at the beginning of the year. It is currently ranked at 7th place among the largest market cap Malaysia companies.

The meteoric rise on Top Glove, its market cap ballooned by RM22.9 billion in value – the increment is equivalent to Dialog Group Bhd’s market cap of RM21.36 billion.

With a market cap of RM34.93 billion, Top Glove is currently the 10th largest Malaysia listed company.

What a turn of fortune to see the glove manufacturer leaping from second bottom market cap placing among the KLCI constituents to the current standing.

Year-to-date (YTD), out of the thirty KLCI constituents, there are only five companies in the positive zone (see chart).

Among them, Dialog’s market cap has increased by RM1.92 billion, while Petronas Group Bhd and Maxis Bhd are able to creep up a meagre RM831 million and RM78 million in valuations respectively.

A back of envelope calculation, an aggregate of RM131 billion of market cap has evaporated among the 30 component stocks.

Other than the number of companies that have lost their valuations YTD, the actual amount of market cap lost is remarkably hefty with the aggregate amount currently at RM131 billion.

A rising tide lifts all boats. Beside the two big boys, other glove makers' share prices are rocketing to new peaks as well.

Supermax Corporation Bhd's market cap jumped by more than four times or RM8.02 billion to RM9.8 billion — which propelled its market cap ranking to 34th place from 123rd place at the beginning of the year.

As for Kossan Rubber Industries Bhd, currently the 33rd largest from 61st previously, it saw its market cap more than doubled by RM5.8 billion to RM11.12 billion.

The market cap phenomenon is more extreme for the small cap glove makers as most have soared exponentially.

Comfort Gloves Bhd's market cap more than tripled, or rose by RM1.57 billion in value, to RM2.03 billion, followed by Rubberex Corporation Bhd, whose market cap leapt by about six times or RM815 million to RM951 million, and Careplus Group Bhd, which jumped by more than six times or RM563 million to RM648 million.

The RM20 price target by Maybank in case anyone searching for it: https://www.theedgemarkets.com/article/it-mad-mad-glove-makers-market

Super old article

Show us the maybank report lah

Exchanging of 5 years Guaranteed Exchangeable Bonds 2019/2024 into ordinary shares - 333,631 shares at 6.100. >>>>> So bond holders get shares at 50% discount? Why would TG do that?

Sure or not, where's the report?

Sit tight and brace yourself for correction.

Still think false breakout above RM8 followed by correction today. Real breach above RM8 next week.