Smaller players under similar biz eg: Dufu Technology, PIE Industrial,etc

It's classify under industrial products and services sector as it is similar biz with competitors like VS Industry, SKP Resources, ATA IMS, etc

No news on US CBP
Almost 8 months already.
Likely to have loss some market share(in US) to others.

I suggest you either cut loss(27%) portfolio or top up more and keep for long term >5 years or switch to other recovery stocks.

Writing blogs won't push up the stocks price.

You have to acknowledge that you came to the party late.

There's Astrazeneca, Sinovac, J&J, Moderna, Sputnik doesn't require deep freeze/ultra-cold unit.

Only Pzifer requires it.

I believe in any single country, source of vaccine will be coming from multiple sources.

I think minimal contribution to Uchi.

Revenue didn't grow this quarter as compared to previous quarter. A little disappointing.
Hopefully is not an indication of revenue had peaked.

Glove is definitely required for vaccination.
7.6 bil ppl needs 7.6 bil pairs.

Supermax will produce additional 10 billion gloves by end 2021.
Topglove will produce additional 18 billion gloves by end 2021.
Harta will produce additional 4 billion gloves by end 2021.
Kossan additional 2 billion gloves by end 2021.

This is only the additional supply from top4 largest manufacturer.
Haven't include 5th to 10th largest supply capacity.
Haven't include new glove wannabes.

I think it will be another failed takeover

Tech is the future.
If you notice, Forbes top 10 richest man in the world, 7 of them doing tech biz, 1 of them invest in tech and 2 not tech.

Times had change

But none of them doing gloves

currently oil and gas rotating equipment services contributes 17% to the total revenue.
Higher oil prices will encourage more upstream activity that benefits Frontken, though o&g biz is not a big portion as compared with semicon biz.

The bonus issue will be credit on 17/2/2021 night.
So on 18/2/2021 morning before trading begins ,will be available in your account.

I think JFTECH probably need 1-2 yrs before it reach the min RM20 million PAT to qualify for main board listing.

Lol.

Buy and invest in the company's good 5G prospect.

This applies to other companies as well.

Unless you are full time day trader, else investing in a company is a passive role where the CEO is working hard for me and my money.

It's correcting since the bullish rally last few weeks.
Below RM1.50 would be a better buy for late comers.

Bursa will uplift IDSS on 1/3.
Suggest you sell your Supermax and Topglove before it gets shorted as well.
Else, keep for the long term and average lower when opportunity arise.

Should have sold it to foxconn or x-fab who are able to utilise the wafer foundry effectively and able to pay for it.
I smell corruption

Inari is going to announce Q2 result in 2 weeks time.

Expect PAT to hit close to Rm100mil 1st time in history.

Share price should reflect naturally and dividend at least 2.5cent.

Gooshen is only looking at daily share price, we are looking are company profits, dividends and BI.

Just received new another glove wannabes:

Lienteh Technology Sdn Bhd, which is expected to obtain necessary approvals to commence production of nitrile gloves, is seeking a back-door listing via Eonmetall Group Bhd. Eonmetall, via a share sale agreement, is planning to acquire a 51% stake in Lienteh Technology for RM51 million. The purchase consideration will be entirely satisfied via the issuance of 72.86 million Eonmetall shares and the granting of a call option by the vendors to Eonmetall for the acquisition of the remaining 49% equity interest for RM49 million.

Lol.

Drop 30 cent only already excellent Gooshen?

Harlo, many here onboard below RM2 and have excellent buffer.

When comparing with other tech company, most semicon is around half the PE in the tech universe, except Unisem

UWC PE=105, Market cap=7bil
Greatech PE=105, Market cap=8bil
JFtech PE=154, Market cap=1.5 bil
Vitrox PE=90, Market cap=8 bil


Inari PE=64, Market cap=11 bil
MPI PE=44, Market cap=7bil
Unisem PE=129, Market cap=7bil

There's fundamental to it but less logical.
Stock market is about sentiment.
Now the sentiment for gloves is forward looking 9-12 mths ahead, where ASP will likely drop by 50%, increase in supplies by glove wannabes worldwide, little moat/barrier to entry, demand to decline in 2022 onwards.

Excellent Gooshen is quite right.

The price will likely drop to RM2.


But it's after this coming bonus issue.

Poorer economies like Indonesia, Africa, Pakistan, Afghanistan,do not contribute much to world economy.

Only the select few countries such as US, China, UK, Japan, Germany, France and India needs to re-open and represent 80% of the world economy.

@pjseow

Good to hear that.
At least you have a buffer unlike most of them here who had purchase it last few months.

Hope you will enjoy the fruit of your investment.

PE is a good indicator to determine if the company is overvalued or undervalued.

It cannot be used by itself but compared with rivals in the same sector.

Each sector has their own average PE but PE is allocated by the market capitalisation. Eg: Top3 leaders can afford higher premium of the average PE.

Glove has hit its peak in Oct 2020 in terms of premium and price premium had been reflected 9-12 mths ahead.

However, holding to glove stocks for long term(>5yrs) will still prove a winner as glove cannot be replaced or it doesn't have a replacement yet.

It's good to have research house around.
They bring company details when doing company interview and site visits.
These details are presented meticulously.

However, it's up to you to interpret the details rather than trusting their theories and buy/sell call.

To be honest, the total number of daily new covid cases worldwide tops around 840,000 and trending towards 400,000 since 1 month ago.
Long term glove would still in demand but unlikely to repeat last year frenzy of glove demand.

In this short term low PE for glove stock will still remain till year end.
PE will beginning to normalise and ASP begins to drop significantly by 60%.

IBs are pricing it forward 2022/2023/2024 when ASP drops to USD35 per 1000.

Besides that, IB is also looking at additional supplies from glove wannabes, like Mahsing, AT,Titijaya, Aspen,Inix, Kanger etc by end 2021 will come in with additional 10 bil supply per annum.
Market will be flooded with gloves.

It seems that gloves no longer is an oligopoly business but monopolistic. No more moat for gloves sector unlike before the pandemic.

@pjseow

Average around RM6.70 ?

@pjseow


Wow, heavily promoting MFCB.

You must have bought and hold a lot of MFCB since mid Jan 2021.

Posted by chengyee > Feb 3, 2021 8:04 AM | Report Abuse

Can show us how you get fv at rm1?
Thanks.

do keep us here more info so that we can make better judgement

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I don't need to. The share price has historically hover below RM1. With the current earnings, the share price will not sustain.

Just put a reminder in your phone calendar on 31/12/2021- Toyoven should be RM1 by now.

Posted by chengyee > Feb 3, 2021 6:01 AM | Report Abuse

Contract of this magnitude, now only reviewing funding options? Dont joke la. They only goyang kaki before contract award is it? Anything from now until the completion of powerplant if not already planned....u think can get contract?

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The Board of Directors of Toyoven mentioned it

https://www.theedgemarkets.com/article/toyo-ventures-executes-us323b-vietnam-power-plant-contract-after-12year-wait

It's still very preliminary stage and currently in the midst of reviewing various investments and funding options, including identifying strategic investors and other suitable parties to co-invest in the project.

It may take 1-2 years before development could even begin and another 3-4 years before power plant up and running.

Looks like it will follow the path of Jaks going down back to below RM1.

@lotuseater

Yup. Limited upside.

Reason is becoz normally for power producer once we're able to know their maximum earnings potential, you may compute specific target price.

Seldom will reach the targeted price but rather trade between 80%-90% of TP.

ANother reason is becoz it's planning to provide high dividend yield.

High dividend yield counters have lower capital appreciation.

FOr MFCB, in order for the counter share price to appreciate further, it needs to have a catalyst or news.

@calvin69

Yes. It's declining ASP growth. The management guidance is 50% per quarter.

Previously most glove counters are having 30% ASP growth month on month.

Refer to news report from June 2020.

I guess you came on late

Probably due to limited upside in earnings since its estimated annual earnings are between RM300mil to RM330mil.

Target price is between RM7.80 (PE=13x) to RM9.00 (PE=15x), limited upside to price as well.

JP Morgan is CORRECT.
The IB is referring to ASP normalisation from 2022 onwards
By 2023, ASP would have drop by half based on their forecast.
Do your math and you will appreciate their calculation

However, glove stocks will still enjoy good profit for at least the next 12mnths amid declining ASP GROWTH.

Thus, it depends whether investors willing to hold on for long term(>5yrs) or just ride this short term(<1yr) play till it's peak.

It's taking a breather and consolidate after a 42% rally.
Good result will likely be out this week.

Interesting forecast on the ASP from 2021-2023. Quite a significant drop.
81(2021) 57(2022) 36(2023)

Looking at this number smaller glove counters might not be profitable in view of the rise in raw material & operating cost of more than 15% year on year.

Probably the pandemic is putting CU stores launching on hold since the footfall is reduced during MCO period.

It's weird.
No news about the bonus issue after approved in 11/1/2021.

Now everyone know Uncle don't know mathematics.

Can't understand him anymore.

The ASP is still growing but the rate had been slowing down significantly, evidence by the growth in net profit despite increase in production capacity.

Seems no longer double or triple for net profit.
Not even 50%.
The days of extraordinary profit is over.
Looks like net profit for Supermax will normalise soon starting with next quarter.

There is always institutional short sellers waiting on the sidelines especially in the mature stock market cycle.

Tony Fernandes initially plan back in October 2020 was looking the borders to open for flights in March 2021.

Looks like his plans is delayed at least till December 2021.

How much can the company continue to bleed on daily overhead fixed cost?

@Ben Tan

I believe the world largest glove manufacturer refers to the number of glove production capacity instead of market capitalization.

Topglove is the largest and is currently meeting 25% of world demand.

@Ibelieve

The pandemic is still not under control but numbers worldwide in the last 1-week had been improving. You may check number of new cases and death rate country by country starting with US, UK, Africa and Asia.

The worst of all Spanish Flu in 1918 which claimed 50 million lives took 2-3 years to recover.

Science and technology to produce vaccine had improved in the last 100 years.

So you can roughly estimate when Covid-19 will likely start to recover.

Though Topglove's ESG rating is quite horrible at this moment, there are other glove makers which are much better eg: Hartalega or Supermax.

I believe the investing community should temporary boycott TOPGLOVE and shift your investment to other glove makers and make a stand that we only support companies that treat their employees well.

Expecting good quarter result next week TSMC is also running at maximum capacity since last quarter to meet world demand.

Unprecedented under value but offer downgrade TP from RM9.50 to RM8.45.
A foolish analyst indeeed.