wow last min surge.... rebounding.

today all gloves come down. seem like all IB and operator are very hunger to hoop back the ticket from retailers.

y vaccine is just to let you calm down. and a weapon for USA to tell the world how strong of their medical team. but in fact... still need at least 6month to 1 year to trial and use in people body...
if too much of side effect.. do you dare to inject the vaccine into your body?

hahaha

i think some big player is pressing down.. so possible today closed below 2.70

CIMB's view on glove...

Sector in focus: Rubber Gloves

Recommendation: Overweight

Top picks: Top Glove (TOPG MK, Add, TP:RM 25.00) & Supermax (SUCB MK, Add, TP:RM 9.80)
Other calls: Kossan (KRI MK, Add, TP: RM11.50) & Hartalega (HART MK, Add, TP: RM14.60)

Key highlights:
Share prices of glove counters particularly, Top Glove and Supermax declined by double digits yesterday. In my view, this is unwarranted. I have also received a lot of enquiries on the reasons why glove counters were being sold down, and whether there has been: i) any fundamental changes, ii) weakening of Dow Jones and iii) massive profit taking on these stocks.

Comments:
1) Based on channel checks as recent as yesterday, there has been no fundamental changes to the glove sector
a. Vaccine rumors still persist, but there has not one there has gone beyond clinical trials. Everything else remains as speculation at this juncture, with any potential vaccine are only ready for mass production by mid-next year (trust me, I cover healthcare stocks too!).
b. Quantity and prices of ah-hoc orders continue to increase (more glove makers are allocating higher percentage of capacity for spot orders) and order visibility remains solid for glove makers (12-14 months).
c. ASPs hikes are still on the cards (ASPs increases are likely to be up to 1QCY20), with more orders being received in preparation for 2nd wave of Covid-19 in various countries.
d. Near-term earnings outlook remains beyond solid, with glove makers likely to post record-breaking profits in the next 2-3 quarters at the very least. In fact, recent noises suggest that some earnings forecast for certain companies are too conservative.

2) If we just zoom into yesterday’s share price data, Malaysia glove makers suffered big declines in share prices while share prices of China-based glove makers appreciated by 7-10% yesterday. Singapore glove makers retreated slightly today by 1.7-1.9%. Based on data from the past 7 days, Malaysia glove makers are the only ones having negative share price performances (-7.3% to -32%), while share prices of Singapore glove makers still appreciated slightly (+0.4% to +5.3%).

3) As a matter of fact, we understand that there has been an increase in enquirers for more glove orders (spot and recurring) given concerns of wave 2 of Covid-19. This is given concerns of occurrence of more Covid-19 cases with re-opening of schools and businesses on a global basis. We have begun to see a re-spike in cases in China, US, Russia, Brazil and etc. (While things are normalizing in Malaysia, cases of Covid-19 on a global scale are in fact increasing and not declining)

4) Based on our earnings forecasts, glove stocks valuations have retreated to a level which we believe are very attractive (TOPG is trading at 13.6x CY21 P/E while SUCB is trading at 19.7x CY21 P.E – Both companies are expected to post at least 200-300% yoy growth in FY21 net profit). I believe glove stocks are attractive as they are trading at teen P/E, and have 200-300% yoy earnings growth.

5) Take note that our earnings forecast have yet to account for any surge in gloves due to Wave 2. On average, our earnings forecast for glove companies are accounting for ASPs increase up to end-CY20, flat in 1HCY21 with a decline from 3QCY21 onwards.

6) Will glove ASPs and demand for glove fall off the cliff? Long and short answer is a definite NO.

During H1N1, average orderbook was 4-5 months at max, and Malaysian glove makers enjoyed a minimum of 5 quarters of strong glove demand. Hence, we should expect at least 8-9 quarters of strong glove demand based on current order visibility of more than 1 year plus.

While we expect ASPs to fall when supply-demand of gloves is more balanced (likely when order visibility is below 4-6 months), but i believe that ASPs of gloves will never go back to 18-22USD per 1000 pieces. This is like expecting face mask prices to go back to 18 sen per piece in 2HCY19 compared to RM0.80-1.50 per piece currently (China masks which has no quality standard being dumped at 50-60 cents per piece – this cannot happen in glove sector, as gloves are used in healthcare sector which requires FDA approval). (Bear in mind, face mask machines can be bought off the shelves, but building glove plants including installation of production lines need 18-24 months to reach a certain standard produce gloves with FDA-approved quality)

7) There is a fundamental change happening for the glove sector, leading to positive trends in the long term. I.e. Better healthcare awareness, more glove usage in more industries, higher usage of gloves per capita in more countries. Hence, glove ASPs will never go back to 18-22USD per 1000 pieces, with recurring usage driving higher consumption patterns.

lol mf.... why never copy the "virus fear"? hahaha.

https://www.channelnewsasia.com/news/asia/beijing-covid-19-cases-new-china-lockdowns-jun-16-12843306

https://www.channelnewsasia.com/news/asia/beijing-covid-19-cases-new-china-lockdowns-jun-16-12843306

https://www.channelnewsasia.com/news/asia/beijing-covid-19-cases-new-china-lockdowns-jun-16-12843306

wow china beijing cancel thousand over flight scheduled today. seem like quite serious at china beijing for the second waves of the virus.

yes after MCO... no more retailers join. the volume also lesser.

today no energy.

mf=moftheFccker. mf appear again to buy low. he cant buy yesterday very sad.

look like waiting something?? all gloves movement are same.

yes, still long way to go as what uncle koon said in his last two article.

should trust uncle koon, and appreciate his recommendation for comfort since 1.00+. even you hold from his buycall until now, still consider 100% profits.

And this covid-19 still carry on, and second waves is coming. why so worry for panic selling?

yesterday everyone so negative, and many hater commentor appear to laugh at those who still holding. Today those commentor like mf and joyvest so quiet because they might bought back at low when everyone panic.

who is legend that uncle koon mentioned in the article?

come ... we enjoys the bull run.. let profits run now.. let the loser cry father and mother. and continue sour grape.

are you ready for bull run>?

sometime i really pity those newbie and weak retailers who kena con by the selfish ppl like mf and joyvest....
if you sold your ticket today, mean you are really a real loser in share market.

if you buy and no confident bbetter dun buy.. or else you cant sleep well tonight.

dun let mf and joylow steal your ticket.

mf you will disappointing to affect others here. nobody sell to you low. so sad.

all gloves as expected gap up... only jolow and mf are sour grape here hahahaa.

@jolow loser pls quiet and see how others make money. haha

many sour grape. seem like wanna press down stock and they can enter at cheap price. sorry to say that, monday no more chance for you below RM3. hahaha

lol...this Lau Guang Sai director....really useless and speechless.hahhaa.
everyday sell his share to buy big house and big car.

uncle and the gang is back on support the prices. dun miss the boat again. today volume spike a first half in the morning from bottom 2.60 all the way up to 3.00 now.

yes comfort might turn reversal signal if today closed above 3.00. and second waves of virus fear is here. nothing is better to invest in bursa except for gloves counter. Top 4 already factor in the price and now a bit of sideway and calm down.
Next week if Topglove and supermax start engine again, it will bring the others medium gloves counter as well.

yes yesterday dji drop is because of fear of second waves of virus. gloves should benefits from the virus.

yes. today is last day of selling due to pass few days the heavy selling.... today heavily collectback. and seem like can come back strongly. mean they aim higher.

yes.... today stand above 3.00 mean reversal is coming soon. second waves of virus.

okay turn green le.

today close green... uncle is back....

wow... today closed green? long tail hammer.... and form a reversal trigger signal for all the gloves counter to participate the second waves of virus.

topglove is green now.

wow i feel that uncle is back....

yes 2.60-.275 is good buy to keep until end of the month.

come... second waves coming. this time will go 4.00.

i think simply 250-300mil profits not an issue for Topglove. Tomorrow is lunch time or after trading hour release the result? anyone know?

we just need a limit up to go $20. hahaha. gogogogo.

by next week should be able to hit above $20. stay tunes.

Please use your brain to think twice before you wanna sell this bullish stock.

new cases covid19 update:-

US +21K
Brazil +22K
Russia +8.8K
India +9.9K
singapore +517
Msia +277

yeah tp20 is on the way.

come..... turn greeenn....

come... strong rebouding coming soon.

now topglove show you who is glove daigor.... dun play with topglove. they all are bondplayer, banker, IB, fund manager, long term investor lover.

greeennnnn soon......

usually ...long tail hammer form.....you better google it. hahaha

among all the top 4 ... topglove performance is best. super rebound coming.