sold off all supermax at 18.90-18.94

special dividend is coming

special dividend is coming

Based on supermax analyst presentation, its manufacture selling price was USD 23; supermax distribution cost was about USD30 before pandemic, in total, supermax derive net profit margin about 7.8% from its combine selling price USD53.

After pandemic occur, supermax manufacture selling price increase to USD 55 in April, USD 80 in May and USD 100 in June. Supermax distribution selling price increase to USD 45 in April, USD 55 in May and USD 60 in June.

These translate into combine increment from USD 53 prepandemic to 70% in April, 155% in May and 200% in June. These increment in average 142% for April- June, a massive sharp contrast to increment growth reported by about 30% -50% range in OEM.

Top glove even if courted for its plan ASP hike by another 30% in month Aug, only manage to hike ASP to 85% if compared to pre pandemic selling price level.

Don forget upcoming Q result for supermax is Q4, a final Q result always accompany with final dividend. Based on historical data, supermax will likely declare share dividend 1 for 20 since it have 5% treasury share now, declare share dividend first before bonus 1 for 1.

What is OEM?

Do you have a unique product design? Have you spent millions of dollars on research and development for that exceptional product, but you need a third-party company to assemble and make things happen for you? Then, you’d have to work with OEM companies on the manufacturing process. This means licensing them everything you’ve got on that blueprint and selling the finished products under your brand name. Top glove is OEM, received order to manufacture glove after granted right by under various oversea brand glove company, appoint top glove to manufacture glove on their behalf based on their specification. Top glove can be consider as upstream player in glove manufacture chain business.

What is OBM?

OBM (Original Brand Manufacturer) is a company that retails their own branded products that are either the entire products or component parts produced by a second company. They sell the goods under their own brand name in order to add value. The OBM will be responsible for everything including the production and development, supply chain, delivery and the marketing. Supermax is the only OBM in Malaysia. Supermax is consider full integrate from upstream manufacture to downstream distributor, marketing own glove brand globally. Currently, supermax healthcare, a wholly own subsidy of supermax, market 12 in house brands as show in its website.

http://aureliagloves.com/product/ignite/y

If you realize that glove profit is going to growth at least 1700% for OEM, and more higher 2000% for OBM forward, the current surge in price of 1000% is still behind profit growth rate now for supermax

As ASP hike only start in April, the coming Q result only is first EPS growth due to ASP from April-June. A further ASP hike impact will only able to record in next Q result. Therefore, glove stock EPS should be courted forward with increasing profit starting from these Q result onward.

If small glove maker, careplus with OEM can record more than 1700% profit growth in quarterly result, what will happen to supermax with much higher profit margin business model OBM + own distribution???

1000% increase profit will record RM 710m or EPS 52sen
2000% increase profit will record RM 1410m or EPS 104sen.

add more supermax at 17.36-1.740

cut myeg at 1.44, swap to supermax

bought back all supermax at 17.60-17.80

cut all at 9.73-9.74

add more bursa at 9.75-9.80

sold inari at 1.88

sold D&O at 82.5sen

sold Dsonic at 1.39-1.40

add all at 1.44

bought D&O at 80sen

bought bursa at 9.90

Add more at 1.34

add myeg at 1.45

bought Dsonic at 1.35

sold back all supoermax at 19-19.02

bought back all supermax at 17.70

bought inari at 1.74-1.75

sold back all supermax at 16.50

bought back all supermax at 16

sold back all topglove at 22.32-22.34

bought maximum topglove at 19.60

The Board of Directors of Top Glove wishes to confirm that the U.S. Customs and Border Protection (“CBP”) has placed a detention order on disposable gloves manufactured by two of the Company’s subsidiaries, namely Top Glove Sdn Bhd and TG Medical Sdn Bhd on 15 July 2020.

We are reaching out to the CBP through our office in U.S., customers and consultants, to understand the issue better and work towards a speedy resolution of the matter, within an estimated 2 weeks.

Remark: Labour issue is face by all glove maker as it is very labour intensive business. TG is leader, if leader have problem, all glove stock sentiment will affected

Labour issue is face by all glove maker as it is very labour intensive business. TG is leader, if leader have problem, all glove stock sentiment will affected

The Board of Directors of Top Glove wishes to confirm that the U.S. Customs and Border Protection (“CBP”) has placed a detention order on disposable gloves manufactured by two of the Company’s subsidiaries, namely Top Glove Sdn Bhd and TG Medical Sdn Bhd on 15 July 2020.



We are reaching out to the CBP through our office in U.S., customers and consultants, to understand the issue better and work towards a speedy resolution of the matter, within an estimated 2 weeks.

KUALA LUMPUR (Reuters) - The U.S. Customs and Border Protection (CBP) has enforced a detention order on subsidiaries of the world's largest medical glove maker Top Glove Corp Bhd, an action intended to halt importation of goods from companies suspected of using forced labour......

KUALA LUMPUR (Reuters) - The U.S. Customs and Border Protection (CBP) has enforced a detention order on subsidiaries of the world's largest medical glove maker Top Glove Corp Bhd, an action intended to halt importation of goods from companies suspected of using forced labour......

https://finance.yahoo.com/news/u-customs-places-detention-order-045308389.html

U.S. Customs issues detention order on imports of goods made by Malaysia's Top Glove

U.S. Customs issues detention order on imports of goods made by Malaysia's Top Glove

https://finance.yahoo.com/news/u-customs-places-detention-order-045308389.html

bought myeg at 1.48

sold back all supermax at 15.90

bought back supermax at 15.30-15.40

sold back supermax at 15.70-15.80

Pandemic covid 19 : glove demand increasing

Vaccination on global population will last for prolong period due to individual need of multiple dose on multiple time interval to sustain antibody level in body: continue glove demand increasing

Glove stock affected by news from Moderna covid vaccines phase 1 trial result. The trial result only recruit 45 participant. Moderna will start next trial phase 3 on 30,000 participant for 3 month from July to Oct.

The trial will evaluate efficacy and safety of vaccines on protection against covid virus on multiple dose and interval time. The trial result will release after completion end of year.

The timeframe from development have shorten from 6 year to current 6 month, As the vaccine is mostly funded by fed government and agency, it will need to widely administer to almost entire population at least in US and European. The billion of people need protection not only 1 dose, but on multiple dose of vaccine to sustain antibody level for prolong time. The demand of glove will continually on high as wide administer vaccine on multiple dose will keep glove on long lasting demand.

Many glove maker already foresight such increasing sustainable demand in future, thus, speedy up capacity expansion for long term plan.

Upcoming news to be release soon:

1. Q result EPS > 30sen
2. share dividend 20 for 1 from 5% treasury stock
3. bonus share

bought back all supermax at RM 15

cut jaks at 87.5-88sen

swap all capital to jaks, add all at 94.5-96sen

sold back supermax at 10.00

bought back supermax at 9.92-9.93