Many MNC like McKesson, Cardinal Health were summoned to White house and warmed about sky high PPE prices. Price gouging in USA and UK is very serious and liability is very high. Supermax is in OBM so more subject to the brand quality, responsibility and liability.

My prediction for end Dec KLSE top 5 MCap company as follows
No 1. Top Gloves
2. Harta
3. Maybank
4. Tenaga
5 PBB
6 PChem
7 IHH
8 Supermax
9 CIMB
10 Maxis

Anyone can bet to match exactly top 5 as stated above, payout ratio is 1 to 10
Match exactly top 10, payout ratio is 1 to 50

If match 10 exactly as stated, payout ratio is 1 to 50. HAHAHA

Anyone want to bet if Top 5 match exactly as state above. Payout ratio is 1 to 10. Price at Dec 31,20

My prediction for end Dec KLSE top 5 MCap company as follows
No 1. Top Gloves
2. Harta
3. Maybank
4. Tenaga
5 PBB
6 PChem
7 IHH
8 Supermax
9 CIMB
10 Maxis

Since listed in FDA level 2 detention in May, All Comfort medical grade container going to USA will automatically subject to detention without examination. It probably takes about 3 to 6 month to clear the FDA detention list with 10 consecutive good container of grade A quality exam gloves and supported by many other doc.
During this period of FDA detention, there are possibly about 45 containers/month of gloves going to USA. I think the QA/QC ppl are scrambling to determine which 10 containers are top quality grade A gloves by checking the detained samples in the factory. Once identify them, the rest of containers will be recalled back to factory and these 10 containers will proceed to the USA port and unloaded in bonded warehouse for 3rd party testing. If pass, then these 10 containers will be loaded back into container and deliver to customer.
There are plethora of reason the gloves will fail the test during this period of time. Even in a year after removal from FDA detention list, they can not afford to fail FDA again. If not, upgrade to level 3 will be considered gone case and can say good by to USA market. Remember, Comfort was upgraded from Level 1 to level 2 in a year after remove from Level 1. This show the quality of their AQL 1.5 grade-A gloves is still questionable. If I were the CEO and management, I would have qualm and have many sleepless night. After level 1, the management should have a more holistic revamp to improve the quality of the gloves.

ust for your thought only. For yearly sales over MCap ratio

Total Revenue last 4 Q / MCap
Supermax = 1.578b / 10.38b = 0.15
Top G = 4.82 / 34 = 0.14
Kossan = 2.27 / 11.2 = 0.20
Comfort = 0.5 / 2 = 0.25
Rubberex = 0.223 / 0.849 = 0.26
Careplus = 0.365 / 0.59 = 0.62

Careplus got sales but no profit maybe due to poor management or higher cost or lower ASP. During
pandemic, I think they should be able to increase ASP accordingly and start to make decent profit.
If they can generate decent NP and fatch 0.30 ratio, the price should be around 2.29
MCap = 0.365/0.3 = 1.21b = RM 2.29/share

Just for your thought only. For yearly sales over MCap ratio

Total Revenue last 4 Q / MCap
Supermax = 1.578b / 10.38b = 0.15
Top G = 4.82 / 34 = 0.14
Kossan = 2.27 / 11.2 = 0.20
Comfort = 0.5 / 2 = 0.25
Rubberex = 0.223 / 0.849 = 0.26
Careplus = 0.365 / 0.59 = 0.62

Careplus got sales but no profit maybe due to poor management or higher cost or lower ASP. During
pandemic, I think they should be able to increase ASP accordingly and start to make decent profit.
If they can generate decent NP and fatch 0.30 ratio, the price should be around 2.29
MCap = 0.365/0.3 = 1.21b = RM 2.29/share

The guy or gal must be rookie, still got error inputing

27-Feb-2020 27-May-2020 29,727 -2,738 -2,335 -2,196 -7.85%

Date Financial Result Financial Ratio Per Share Item Performance
Ann. Date
Quarter
Revenue
PBT
NP
NP to SH
NP Margin
ROE
EPS
DPS
NAPS
QoQ
YoY
Financial Year: 31-Dec-2019
27-Feb-2020 27-May-2020 29,727 -2,738 -2,335 -2,196 -7.85% -4.29% -0.43 0.00 0.1000 -181.97% 88.93%
Financial Year: 31-Dec-2018
28-Feb-2019 31-Dec-2019 41,217 -19,516 -19,516 -19,841 -47.35% -27.68% -3.88 0.00 0.1400 -2,160.33% -370.28%

I guess someone try to update the quarterly report but mistype and now trying to correct it.

I check again, it was remove. What is happening

Anyone know why in Research/financial show one month financial report
19-May-2017 31-Jan-2020 9,558 -197 -206

A lot of people just underestimate how serious FDA import alert 80-04 level 2 is. "Surveillance and Detention Without Physical Examination of Surgeon's and Patient Examination Gloves"
Comfort one of container gloves sample failed AQL pinhole test again and thus under automatic detention list level 2. The procedure to release the name from this FDA detention list is very tedious and time consuming not to mention lost of customers and extra cost involved.
I expect capitulation occur tomorrow.

A lot of people just underestimate how serious FDA import alert 80-04 level 2 is. "Surveillance and Detention Without Physical Examination of Surgeon's and Patient Examination Gloves"
Comfort one of container gloves sample failed AQL pinhole test again and thus under automatic detention list level 2. The procedure to release the name from this FDA detention list is very tedious and time consuming not to mention lost of customers and extra cost involved.
I expect capitulation occur tomorrow.

https://www.accessdata.fda.gov/cms_ia/importalert_229.html

Comfort Rubber Gloves Industries Sdn. Bhd. Date Published : 05/26/2020
Lot 821, Jalan Matang , Matang, Perak MALAYSIA
80 F - - MC Glove, Patient Examination
Date Published: 05/26/2020
Desc: Examination Gloves
Notes: *Level 2
80 L - - YY Glove, Patient Examination, Latex
Date Published: 05/26/2020
Desc: Examination Gloves
Notes: *Level 2
80 L - - YZ Glove, Patient Examination, Vinyl
Date Published: 05/26/2020
Desc: Examination Gloves
Notes: *Level 2
80 L - - ZA Glove, Patient Examination, Poly
Date Published: 05/26/2020
Desc: Examination Gloves
Notes: *Level 2
80 L - - ZC Glove, Patient Examination, Specialty
Date Published: 05/26/2020
Desc: Examination Gloves
Notes: *Level 2
80 O - - IG Rubber examination gloves, powder-free
Date Published: 05/26/2020
Desc: Examination Gloves
Notes: *Level 2

Of course is true because the detention list is the same as Comfort in FDA level 1 alert list. Now level 2.
The Comfort management always not reveal the true until several week later just like last detention. You can call MREPC or Magma to check if it is true.

Comfort in FDA level 2 alert. Once in level 2, very difficult to get out of detention list. so watch out tomorrow. Avoid comfort. Just keep your Supermax share.

CGS-CIMB Research, which has also raised its target price for Top Glove to RM16.50 from RM10.40 previously, expects Top Glove to generate an annual profit of RM864 million for the financial year ending Aug 31, 2020 (FY20), and to grow its earnings further to RM1.22 billion for FY21 and RM1 billion for FY22. This translates into EPS forecasts of 34 sen for FY20, 47 sen for FY21 and 39 sen for FY22.

I would bet that Supermax will have the equal result if not better as Top Gloves.

Just go to Amazon n check with the current price of P.F nitrile exam gloves. Over USD100 to 200/1000 gloves. With such a high burgeoning price in retail, the retail OBM price of Aurelia n Maxter will be high too so does ASP of Supermax to their distributor and end users. If the retail price stay above USD 100 or higher until end of 2020, Supermax WILL MAKE MORE THAN ONE BILLION RINGGIT.
If I were analyst, I would just revise the TP to 20 instead of revising every week or month. The only risk is when USA government/Trump start to think that PPE price is out of control and will call in all big MNC like McKesson to cap on the gloves price just like what happen in Malaysia to mask price.
Just keep your Supermax share until when you notice that Amazon retail price of gloves start to go down. That might be the beginning of the end of the gloves super rally. That would be a good time to sell your share.

Just go to Amazon n check with the current price of P.F nitrile exam gloves. Over USD100 to 200/1000 gloves. With such a high burgeoning price in retail, the retail OBM price of Aurelia n Maxter will be high too so does ASP of Supermax to their distributor and end users. If the retail price stay above USD 100 or higher until end of 2020, Supermax WILL MAKE MORE THAN ONE BILLION RINGGIT.
If I were analyst, I would just revise TP to 20 instead of revising every week or month. The only risk is when USA government/Trump start to think that PPE price is out of control and will call in all big MNC like McKesson to cap on the gloves price just like what happen in Malaysia to mask price.
Just keep your Supermax share until when you notice that Amazon retail price of gloves start to go down. That would be a good time to sell your share.

Many OEM factories could not progressively increase ASP n many of them still stuck in USD28/1000 to 40 range to regular big customer like Ansell, McKesson, Medline, Halyard and many other MNC. If you check the spot rate with gloves factories, they are quoting USD60+ now. Supermax is very strong in dental market and selling like hot cake at Henry Schein, Patterson platform at USD 99/1000 as we speak.
Usually retail margin in USA is 35 to 40% of cost. so I think Supermax will invoice their 6 warehouses around USD 65. Every analyst or investor will scramble to revise their TP due to explosive EPS in next three quarter at least.

Many of their 50% OEM customers are exasperated by their aggressive price increase. However, Supermax management is ready to move ahead with more OBM market share of 90% during this once of the life time opportunities. So expect all OEM customers will leave Supermax after pandemic.

Supermx price up up up not because of speculation but explosive earning of next three qtr of around 750 mil in my estimation based on their aggressive ASP of OBM.

My est Apr 210 (130 +80Stock) May (143 + 30S) June (157+0) = RM540mil = 4.5bil gloves
NP = 4.5 bil x (asp30-cost20)x4.3 = 193.5 mil
July-Sep price increase to usd35/1000 to 50 u do the math

most of the gloves factories increase SP range of 10 to 30% since April. Take ASP 10% up,
couple with no major cost increase in production, so net profit will increase by 100% easily.

One option is for Comfort to sell to non-medical gloves market in USA.

This is a nightmare both to the factory and customer

You guess who is going to bear all the extra cost and time not to mention potentially losing customers.

Comfort is under FDA automatic detention level 1 which is a serious matter. That mean all containers entering USA are automatically detained. The owner has to conduct a third party inspection lab to carry out the testing procedure to prove the gloves meet the USA standard before it can be released.

Edge report link
http://www.theedgemarkets.com/article/comfort-gloves-sinks-11month-low-after-entering-us-fda-alert-list

normally FDA randomly pick up container for sample testing and it happen less than 5% of the imported containers. So for every 100 container of Comfort's container going to USA, maybe only couple of containers get FDA sampling and one of the container failed. So their quality is really bad.
To be lifted from FDA detention list, they need 5 consecutive containers tested and pass. It is very unlikely if their quality is sub par.

You can play with MACC, PDRM but never mess with FDA, FBI, CIA

medical gloves usually need FDA standard of AQL1.5 which mean pinhole rate very low. Further more gloves producer only randomly check gloves pinhole during production. NOT every gloves. So if factory lax in QC then FDA detention is the result.

If I'm not mistaken, the big boss bot share around 13 cent during IRCB PN17 period.

Better invest when the FDA smog is clear and wait for next qty report

Many gloves factories from China having FDA automatic detention level 2 & 3 issue and never export to USA again due to their continue pinhole problem and not dealing with FDA properly. You must follow the rules and regulation when dealing with FDA. No shortcut and no corruption.

Let's hope they can pass, if they fail second and third time, they can kiss goodby to USA.

FDA detention, no joke men. Better sell and run. It can cause a lot of trouble if not handle properly.