Sold @0.74. But still thankful.

Malaysia’s AT Systematization Expects MYR860 Mln Annual Revenue From Glove Venture

By Kuala Lumpur Newsroom
NewsRise

KUALA LUMPUR (Oct 28) -- Malaysia’s AT Systematization, an automation systems maker on Wednesday said it expects glove manufacturing business to generate annual revenue of 860 million ringgit ($206.51 million), based on maximum production capacity of 2.6 billion glove pieces per year.

The first production line will commence in early December 2020 and contribution will start in financial year of 2021, the company said in a statement. Two new glove dipping lines will be installed in every subsequent month, bringing its total output to 2.6 billion pieces by June 2021, it added.

AT Systematization will invest a total of 120 million ringgit for the installation of 13 glove dipping lines, together with related facilities and new building, said Managing Director Choong Lee Aun. The company plans to have a total of 20 glove dipping lines.

“The lines 14 to 20, however, will be installed in a new plant to be decided later,“ he said. “We are confident that our new glove manufacturing business will breakeven in less than a year.“

Chong said that the long-term growth prospects of the rubber gloves industry are intact, given the increased awareness of the importance of gloves following the pandemic.

Malaysia's Lotte Chemical Titan 3Q Net Profit Plunges 13.7% On Forex Loss



By Kuala Lumpur Newsroom
NewsRise

KUALA LUMPUR (Oct 28) -- Lotte Chemical Titan Holding, the Malaysian unit of South Korean petrochemical giant Lotte Chemical Corp, said Wednesday its net profit slipped 13.7% in the third quarter due to foreign exchange losses.

Net profit for the three months ended Sep. 30 was 78.77 million ringgit ($18.92 million) compared to 91.30 million ringgit over the same period last year, Lotte Chemical Titan said. Quarterly revenue fell 10.4% on year to 1.94 billion ringgit from 2.17 billion ringgit.

The company recorded foreign exchange loss of 44.60 million ringgit as compared to a gain of 11.63 million ringgit in the year-ago quarter.

“Our long-term strategy to ride through these challenging periods will include optimizing plant operations to increase our production output, improving our business competitiveness in light of industry competition,” it said.

I need to be in group too thanks

Crdit Suisse TP RM23 The lead time for Top Glove's sales orders has protracted further to
June 2021. There has also been a recent rise in ad-hoc and spot
orders by government agencies needing urgent deliveries. Top Glove
has decided to allocate 10% of its capacity for these spot orders.
▪
Given the long lead time for normal orders, it is not surprising that
spot prices are 3-4x higher, at >US$100/1000 pieces. The company
is now expecting a monthly double-digit ASP increase at least for the
next two months.
▪
We raise FY20-22 EPS by 20-135%. We now expect earnings to
grow 182% in FY20 and a further 122% in FY21. 3Q FY20 results
will be released on 11 June, which we expect to be strong and should
drive a further re-rating of the stock.
▪
Our target price, pegged to 27x P/E which is the mid-point between
its average P/E and 1SD above, rises to RM23.00 (from RM11.30).
We maintain our bullish view on the stock. FY21 P/E of 17x is not
excessive, in our view, given the robust expected growth.
▪
Research Analysts
Joanna Cheah, CFA / 6 03 2723 2081
joanna.cheah@credit-suisse.com
3 June 2020
Asia Pacific | Malaysia
Equity Research
DISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, LEGAL ENTITY DISCLOSURE AND
THE STATUS OF NON-US ANALYSTS. US Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be
aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment
decision.
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