Based on.Supermx Analyst briefing slides dated 9 August 2020, Supermx current Business model

1. OBM + Supermx distribution 58 %
2. OBM + Other independent Distribution 40 %
3. OEM 2 %

Supermx make both manufacturing profits plus distribution profits for model 1 . Supermx make only manufacturing profit for both model 2 and 3. Supermx used to sell 30 % under OEM before pandemic and there were many middle men like dealers and agents in model 2 and 3. Most of the OEM has since been converted to model1 and some to model 2. At the same time , supermx cut off middle men and dealers last year during the pandemic.

WOW, Careplus almost triple its QOQ earning due to higher shipments from higher utilization rates and.higher ASP .

melalie181818 . Sue.small kid ? No lah . Dont be too emotional when people try to correct you . Kid need teaching and educating not suing. Learn how to apologize when people tell your bad behaviour .Sueing a kid is too harsh .When neighbouring kid misbehave, we usually teach him not to repeat the same bad mouthing. Learn how to appreciate my teaching . It is for your own good when you grow up . Dont talk to senior using rough words . In Hokkien , we call you BO.TUA BO SWUI or 没大没小。

Harta has a 60 % dividend policy . The amount of dividend is based on previous qtr eps. For example the last 9.5 sen was derived from
15.95 sen x 0.6 = 9.5 sen. The coming dividend of 17.7 s is from 29.31 x 0.6 = 17.7 s . The next QR dividend.should be 32.75 x 0.6 = 19.7 sen.

melanie18181818 , You are the one who commented my comments and you showed your.poor upbringing by saying.my brain got water , use my otak. It is better you dont read my comment since you like to use foul words showing your low class poor upbringing . I noticed you have commented twice on my comments by using bad language. I am sorry I have to teach you basic mannerism since you seem to have poor uobringing. In Chinese we call you 没家教。

melanie181818 , Let me show you a very simple primary.school mathematics since you failed yo understand my comment.
Supermx Q2 revenue was 1.999 billions while Q3 was 1.938 billions. If there was.a 15 to 25 % drop in ASP in Q3 , then the revenue in.Q3 will be 1.999 x 0.8 = 1.599 billions assuming.an average of 20 % drop . This is assuming no disruption of shipment due to Meru plant shutdown. If we take into account of lower shipment due to meru shutdown , the revenue will be much.lower than 1.599 billions in Q3 . The.shutdown in Topglove.and.Harta affected shipments by 8 % and.30 % respectively. If you still cannot understand, this simple maths, I suggest you go back to kindergarden to learn baby.maths first . I hope someone from this.forum to volunteer to use a lower language to explain to him.

When Topglove decided to trim down the number of shares to be offered in HK listing, the investment community welcomed the move. Topglove share price went up in response to such move.

After Supermx QR was out ,there was a misconception that the last Qtr slightly lower revenue and PAT were due to lower ASP of 15 to 25 % . Such misconception is due to poor supermx guidance . While every glove counters reported a 30 to 50 % increase in ASP , it is unlikely Supermx last Qtr ASP dropped 15 to 25 % . With the Meru plant shutdown which definitely affect utilization like what Harta (2.8 billion pcs lower ) and Topglove ( 8 % lower ) experienced , Supermx will be affected too but supermx did not reveal the actual numbers . If we take out the 75 m donation , Supermx PAT is actually 1.08 billion which is slightly higher than its previous qtr profit of 1.059 billions. In order to illustrate for better understanding , I use Harta numbers because Harta is 100 % Nitrile and it does not have the distribution income like what Supermx has .

Harta Q3 and Q4 revenues and PAT fit well with the difference in ASP s and Shipments .

Q3 ASP = US 55 shipment = 9.5 billions exchange rate = 4.08

Revenue = 55 x 9.5 x 4.08 = RM 2.13 billions
Profit = 2.13 x 0.47 = RM 1.002 billions

Q4 ASP = US 55 x 1.5 = US 82.5 shipment = 6.7 billions exch rate=4.15

Revenue = 82.5 x 6.7 x 4.15 = RM 2.3 billions
Profit = 2.3 x 0.486 = RM 1.12 billions

As for supermx , there are no guidance on ASP increase and actual capacity utilization , I assume two scenarios , One is with 64 % utilization ( similar to Harta ) due to Meru plant shutdown and 40 % increase in ASP and another with 70 % utilization with 30 % increase in ASP . Either ways , ASP s must increase to compensate for the lost in utilization .
Supermx did not mention shortage of container issues while Comfort in its last qtr stated clearly container shortage which affect 25 % of its shipment which will be shipped in this qtr .

We also observed inventory increase for Harta and Supermx, if such higher inventory were caused by container shortage , we also expect these inventories to be shipped in this qtr .

To summarise , Supermx last qtr ASP did increase but lower than 50 % . The dropped in ASP is most likely on spot sales which only make up 15 to 20 % of total business . It is understandable that no one will pay 2 to 3 x more than normal price when the leadtiimes are coming down and many would have planned to buy earlier .

Harta maintained that the coming qtr ASP remain or slightly higher . IF there is no production disruption , we can expect a bumper QR if we assume 9.5 billions shipment plus rolled over inventory . You can do a simple calculation yourself .
As for supermx , it is unlikely it sell lower than Harta ASP in coming qtr in its normal sales . Even it the ASP goes down 15 to 25 % from the last qtr , it is still higher than the Q2 ASP . If there is no disruption of production , I expect a good coming qtr with the inventory roll over .

Ben Tan, thanks again for following up with supermx and Harta QR . I too has the same questions on supermx remarks on the 15 % to 25 % drop of ASPs. I think Harta briefing slides are more transparent and provided better guidance .

Harta Q4 revenues and PAT fit well with its 50 % increase in ASP and drop in utiliation .

Q3 ASP = US 55 , shipment = 9.5 billions exchange rate = 4.08

Revenue = 55 x 9.5 x 4.08 = 2.13 billions
Profit = 2.13 x 0.47 = 1.002 billions

Q4 ASP = US 55 x 1.5 = 82.5 ,shipment = 6.7 billions , exchange rate = 4.15

Revenue = 82.5 x 6.7 x 4.15 = 2.3 billions
Profit = 2.3 x 0.485 = 1.112 billions

I agreed with you that supermx statement of ASP drop led to many confusion and misunderstandings . It led many to believe that the ASP of last qtr ( Q3 ) drop which resulted in drop in revenue and profit when actually is not . It is impossible for supermx to deliver a PAT of 1.080 ( exclude the 75 million donation if its Q3 ASP drop 15 to 25 % with Meru shutdown which has leads to lower utiliation . Based on my assumptions of two scenarios , the first is ASP increase 30 % ( assuming Nitrile ASP of 82.5 ), its utiliation is 70 % and another scenario is ASP increase by 40 % , its utilization is 64 % . Both scenarios had ASP increase . It is unfortunate that many IB s assume that supermxx Q3 's ASP drops 15 to 25 % which is IMPOSSIBLE mathematically . Supermx could have meant the drops was for spot prices which used to be 2 to 3 x of normal prices but this is only a small fraction of total sales .Supermx should be more transparent on this so that there is no confusion .


Comfort is more detailed on the shortage of container issues . In the prospectus of its last QR , it clearly stated that high inventory was due the shortage which has affected 25 % of its shipment and this will be shipped in subsequent qtr . I expect Comfort to deliver another super qtr with this additional shipment .

Harta maintained that the ASP for next qtr will be the same or better than Q4 .If we assume same ASP of US 82.5 plus the additional inventory rolled over , its next QR will be superb if there is no plant disruption .
Supermx had similar inventory increase but it did not mention container shortage problem . I would prefer to presume that the first scenario where its ASP increase only 30 % rather than 50 % like what Kossan and Harta experienced . Its utilization of 70 % is not as bad as Harta . Either was , we still expect Supermx to deliver a fairly good result next qtr even its ASP drop to Q2 level which is unlikely supermx will sell lower price than Harta .
Hope my comments help .

The 3 glove counters.Harta , Kossan.and Supermx had announced their respective QR. All delivered record profits of more than 1 billions. Below are.the summaries of key points.
1. Glove Demand
Glove demands continue to be strong .MARGMA projected growth of 15 to 20 % in the next few years. Post pandemic demand.will.be above pre pandemic due to structural changes to human awareness on hygience

2. ASPS
Kossan : ASPs will moderate
Harta : Next qtr ASP will remain higher . It will be revised downwards in.the coming qtrs
Supermx : ASPs are coming.down 15 to 25 %. Spot prices are lower than contractual prices. Not clear whether it refer to spot prices have come down 15 to 25.%. Spot.sales is only 15 to 20 % of the business.

3. Capacity Expansion

Supermx will double its capacity in 2022 while the others in.following years.

4. Cash positions
All 3 are in nett cash with billions in the bank.

5. Dividend
Kossan : 12 sen
Supermx : 13 sen
Harta : 17.7 sen

6. Weighted ASPs projections from Vital Factor consulting for next 4 years
2021 : US 74 per 1000
2022 : US 56 per 1000
2023 ： US 45 per 1000
2024 : US 38 per.1000
Pre pandemic.ASP was about US 20

7. PE Ratios
Harta : 11
Supermx : 4.1
Kossan : 4.9
8. Future Earnings

Simple mathematics will show you the earnings will be compensated by the drop in ASPs. Even if it doesnt compensate, the drop in earnings will be gradual . There are good margin of safety with the extremely low in low PE ratios fir these glove counters.

How does the market inteprete these informations ? Fear ? Bad omen, end of the world?
The sharp drop in prices are irrational .

RISK8888, good observation. I found both Harta and Supermx had high inventories of more than 600 mils compared their previous qtrs of 300 plus millions.

Mustache, a574636 and.I believe, well said and fully.agreed with you .

If we take out the one off donation of rm 75 million donation to the government, Q3 earning will be 1.08 billion which is still.a record earning with more than 30x of pre pandemic earnings. This Q3 earning is the fifth .consecutive qtrs of record earnings . The PE of 4.66 is still the cheapest among the top 4 glove manufacturers. With a cash of about 4.billions and reasonable dividend yield , it is difficult to find.another company with such fundamentals and price.

ASP will peak in mid 2021 has been mentioned by the IB s repeatedly since last.year. Nothing new . Based on Frost & Sullivan and Vital Factor Consulting reports, the.ASP s will peak in 2021 and.come down gradually till 2024 or 2025 and stabilize. The capacity expansions by the respective glove manufacturers are also not new. You can calculate and estimate.their respective revenue and earnings based on these data. Both harta and supermx also mentioned continued strong demands.in the years ahead.

Supermx faced similar drop in utilization as Harta when it stated the Meru plant shutdown for sanitization.in Feb .It did not mention If the shutdown was for the whole of February. If the shutdown was for the whole.month, then the drop in.volumes was substantial probably between 25 to 30 %. There was.also a donation of rm 75 million to our government . Despite these 2 items , supermx still.managed to deliver a billion profit which was slightly lower than previous qtr. These were compensated by increase in.ASP. Both Harta and Supermx mentioned lowering of ASPs in the coming months although both companies still see.strong demand in the months ahead. Hopefully, there are no more production.disruptions in the coming qtrs.

It is worth noting the Statement.from.supermx
" The expectation is that competition will intensify. Nevertheless ，we are confident that our sound business model and our well established distribution.networks built up since 1989 has prepared us well for all challenges ahead "

Charles T, the estimation is purely mathematical by using Ben 's scenario 2 3.12 b revenue and my estimate of 58 % margin . The previous qtr margin already hit 53 % margin. Hence, with 50 % ASP increase , 58 % assumption is considered conservative.

Ben Tan , Harta "lukewarm" result was hit by the unexpected 6.7 billion shipment which was way below its previous qtr 9.5 billions. This unexpected drop was due to shutdown arising from preventivr measures on covid infections plus shortage of containers. Despite such drastic lower shipment, Harta can still produce a qoq improvements which was attributed to the 50% increase in ASP.

Ben Tan Thanks for compiling the glove export data . I think the most likely scenario is scenario 2 . I estimate the PAT margin to be 58 % . With this margin ,the supermx earning may hit 3.12 x 0.58 = 1.81 billion.

If ASP increase by 40 to 50 % of Q2 ASP and assume a volume of 6 billion.glove.shipments, then the estimated PAT of Q3 is between 1.5 to 1.6 billions .

Zees , The.fact.that Kossan did not have such problem means that it is only unique to Harta only . Hopefully supermx do not have these problrms too
The 50 % QOQ increase in ASP was real and reported by Harta. Lets keep our finger crossed and wait for tomorrow.result.

invest malaysia. Topglove last qtr also had a volume drop of 8 % due to covid shutdown but not as bad as Harta . I thought you have been telling me how efficient.Harta mfg was. I just bought 20 lots this morning and expected an 80 % increase in QOQ earning based on.40 % QOQ increase in ASP and 90 % utilization. The ASP increase of 50 % doesnt.disappoint me but the utilization did.

The devil.is in.the detail . I just browsed through Harta briefing slides. I was really shocked to read the Utilization of only 64 % which was extremely low . Reasons given.were shortage of containers and lines shutdown for preventive maintenance. This account.for why Harta last qtr revenue and earning were below our expectations of at least 50 to 60 % increase . The slides also mentioned that there was a.50 % QOQ ASP increase. Fortunately, there was such 50 % ASP increase or else Harta revenue and earning would have been.in negative territory. The question is why.Kossan.do not have such problems.

I just browsed through the briefing slides . I was shocked to read the Utilization rate of only 64 % which was extremely low. This account for why the revenue and earnings were below expectations despite a 50 % QOQ ASP increase. The reasons given were line shutdown for preventive maintenance and shortage of containers. The questions are.why Kossan.did not face such problems.

Newway, thanks. Stockraider also did not read the Vital Factor Consulting report which stated the Weighted ASP s of Nitrile and Latex gloves from US 74 in 2021 to US 56 in 2022, US 45 in 2023 and 38 in 2024 . The current Supermx capacity is 24 billion per annum. By end of 2022,
supermx capacity will be doubled to 48 billion. The ASP of US 56 in 2022 is still.more than half of the peak of 74 in 2021. Mathematically , the 1/3 drop of ASP.is compensated by the doubling of capacity. In 2024 when the ASP of 38 is half of 74, the new capacity ( assuming 60 billion) of more than double will also.almost compensate for the drop in.ASP. My detailed calculations show a slight drop of abfew percent yearly from the peak of 4.8 billion in 2021 due.to.some margin drop .

Stockraider. The devil is in the details. I have read both Frost & Sullivan price.charts and Vital Factor.Consulting Reports and did a very detail calculations for the.revenues and profits for both Topgloves and Supermx for the next 4 years using.the projected ASP s and Capacities Expansions. You will be Shocked with the good earnings even with. the.expected lower ASPs. I have checked my assumptions and calculations more than 10 times. Barring.any.unforseen circumstances, these gloves counters are damn good bets at current.prices.

It takes years to build your own brand. You must have good quality, right pricings , good assurance of supply and good relationships with customers. Supermx had started OBM more than 10 years ago and now started to reap the real benefits from the OBM + Own.Distribution Channels in.8 countries . The dual income streams from both mfg and distribution has enabled supermx to grow its earning to more than 30 x yoy. In longer term., with its established brand name and.efficient distribution channels in 8 countries, supermx can also buy.from the smaller glove makers like careplus, Mahsing , Comfort etc to distribute under supermx brand name to its supermx customers when these smaller glove makers had some excess capacities in.the next few years.

I remembered 25 years ago , there were only coffee beans and Starbucks.After that more and more franchise cafes are selling coffees . There are oversupply of coffees but I did not see the prices of Starbuck and Coffee Beans coffee coming down. WHY ? The population of Malaysia is not even doubled but the number of cafes had grown leap and bound. Does.coffee ASP came down ? No. I only know that old town coffee increased the price to more than double when more and more outlets were opened.

I meant the world glove total capacity is at 420 billions in this year or 2021.

Calvin, The world gloves consumption per year has been growing 10 % per year while the world population growth is only 1.1 % in the last 20 years. How do you explain that? There is such measure called glove usage per capita . The US and some European glove usage per capita had reached 300 pcs per year while the highly populated countries like India , China ,Indonesia,Bangladesh etc.are still at less than 10 pcs per capita. Based on MARGMA numbers, this year total glove capacity in the world will be 420 billions. That means the world average per capita is only 420/8 = 52.5 pcs。 There is still room fir growth to 100 pcs , 200 and 300 pcs per year per person. Those in medical field need to use many pieces per day . They have to change gloves after touching and examining one patient before going to the next. As hygience.awareness grow during and post pandemics, more.and.more gloves will be used per day by those in medical fields and.F & B , Aviation plus those in customer service areas.

Flu epidemics has been with us for decades . WHO estimated 290k to 650 k death due to FLU every year despite mature vaccine availability in the last few decades. Covid 19 virus is more deadly and contagious than FLU virus. To assume that Covid 19 pandemic will goes away completely with vaccinations is too naive assumption. First , not everyone will be vaccinated . Second there is expiry date of one year after vaccinations. Third , it takes two to three weeks for immunity after vaccinations. Fourth , the vaccine efficacies are not 100 % . All the above factors means that peoples will still get infected and spread . Prevention like wearing masks, wearing gloves, social distancing etc are still necessary for years to come even though the pandemics is reduced to endemics.

Glove stocks are growth stocks. The share prices of both Topglove and supermx has grown more than 250X since IPO 20 years ago. This iequivalent to 32 % CAGR. Such performance is better than Warren Buffet stocks.

Supermx is.charging.ahead after two days of correction . Supermx new business model of 58 % selling direct to.final customets through.its own distribution.channel make a world of difference in.improving earnings. Supermx had almost eliminated its 30.% low.margin OEM.business during pre pandemic period.

Although past performance is not indicative of future result , we have to use past performances to make a logical and rational choice. For example, if you want to hire a sales manager, you would look at his past records especially his last few years record. I would hire a manager who brought in.increasing sales of nore than 10 x for the last 8 qtrs consecutively than another manager who only brought in only increasing sales of 1 to 2 x for a 2 to 3 qtrs only . Moreover, the one with superb sales record only.ask for 5k.salary ( PE 5) than the other who ask for 50k ( PE 50 )salary. The choice is so obvious .

Supermx will.be announcing its Q3 result in May next month while Topglove will announce its in June. Both are expected to announce record profits after their 7 consecutive qtrs of better QOQ results. THE ROE s of both companies are.expected to hit more than 100 % after they announce another 10 to 20 x yoy earning increases. The net cash will also grow by billions. With cuurent market prices of less than RM 6 , their PE will be less than 5 . Their profit margins are also expected to hit 60 %. I cant find another company with.such superb fundamentals.

Gloves are growing industry for the past 30 years with.and without pandemics. Without pandemic , gloves consumption grow between 8 to 10 % annually. With pandemic, it grew 20 % last year and expect to grow 25 % this year and 15 to 20 % after next year based on.MARGMA report. The hygience awareness are getting stronger in.every country.due to this pandemic. Hospitals and clinics will not stop using gloves even if the number of infections goes down to a very low level. The average per capita usage for this year is at 420/7.8 = 53 pcs per year . There is still room.for growth to 300 pcs which is the number the developed countries are using. 420 billions is this year total glove capacity in 2021 while 7.8 billions is world total population.

Have you wonder why Supermx can.make 20x to 34x yoy profits in the last 3 qtrs while the other glove makers cant emulate ? The answers.can be found in the Supermx Analysts briefing slide number 13 dated 9th August 2020. This slide.showed the amount of ex factory prices , the percentage of distribution.and dealers margins before pandemic and after pandemic. It also showed.how supermx management had transform the.business models by cutting off.the.middle men.and dealers and moved a big chunk of its low margin OEM.business to its own distribution own brand model. It is important to note that even.before pandemic , the selling prices to final customer was already.at US 90 per 1000 when the ex factory.prices was at 22 to 23 only . A big chunk of money was made by dealers, distributors and middle men.or agents. With the change of new business model, 58 % of supermx gloves are.sold.directly to.the customers through its own.8 distribution channels . Imagine the margins if the final customer prices were between US 120 to 180 per 1000 during the last 9 months of heightened pandemic period. The 58 % of selling direct to final customers will be permanent . Topglove.can.come close to such.20 to 30x margins because of its 30 % spot sales with ASPs of 150 to 180 . This spot sales is not permanent .As the lead time reduce to 3 to 4 months, the spot sales will reduce as no one is willing to pay more than double the price of a few months waiting. Even if the ASP goes down to US 35 or 40 as what MARGMA predicted post pandemic, Supermx will.continue to make huge margins from this 58 % of own distribution.business not to mention the more tham doubling of its capacity in the next 4 to 4 years.

what happen to his golden rule of buying stocks? All the glove stocks fit his buying rules criteria.

Rule number 1, this qtr profit must be mote than last qtr. Next qtr.profit.must be more than this qtr.

Rule number 2 . Its PE.Ratio.must be less than.10

All.glove stocks fit his golden rules. Why he contradicts his own rules ?

I just browsed.through supermx analysts briefing slides dated 9th.Aug.2020 for its Q4 result. I noticed its ex factory ASP went up.from.about US 65 from mid May till.mid June to about.100 to 110 in.mid June till.end July. With.lead time of more than.6 months at that time, there is a.high.possbility some of these orders with these prices would have been shipped during the Q3 (Jan.till March ) which will be announced this or next week. The distributor price was also hitting US180 per 1000. I estimated the coming revenue to be rm 2.5 billion.and profit of about
rm 1.5 billion. The overall.margin.is 60 %.

Last week I read an.article.by.an IB with the Title The Glorious days of gloves are not over yet. Of course, it is not over yet . How.can.the glorious.days be over when their share prices are still.at half of the peaks prices in August last year when the QR earnings were still increasing non stop from.September last year till today. The peak earnings have yet.to come. The.markets had been manipulated by those.call warrants issuers and their cohorts by using non factual news to scare off the retailers. I had more than 20 years experience in stock.investment and I had never seen such such.a rampant illogical markets when all the glove stock prices came down for 9 months by 50 to 60 % while their quarterly profits continue to make 10x , 20 x and 30 x YOY profits until their prices are at singke digits PE. I am.happy to see such madness is finally.over and struggling to correct the madness 。I am.also very happy that I added supermx and harta with much.higher qty at almost the lowest points.

UPlanet, India already.asked for help from.many countries except China. India still treat China as enemy.after last year stand off at Ladark. China offered to help.India out of humanitarian ground but India still.refuse to accept the offer due to self esteem. It takes great wisdom from.Indian leadership to work together with its neighbour China for the greater good of both countries.

Next week , we are expecting good and another tecord financial results from.Supermx and Harta. So far Comfort, Topglove and Kossan showed a 53 % , 21.% and 92 % QOQ earning increases respectively. Comfort last QR was ending in.January while Topglove ending
February and Kossan ending in.March 2021. Topglove would have a better increase ( about 40 to 50%) if not because of US custom banning plus 2 weeks shutdown issues . Without going into detailed calculation , what is the best guesstimate for Supermx earning QOQ increase? I would put it at between.50 to 60 % increase. Any.other guess timates?

invest malaysia,Topglove.had moved up about a ringgit from the low of 4.47 . Thus is about 22 % up whereas Harta only moved up about 15 %. Others like Supermx and Kossan had moved up more than 30 % from their rock bottoms. Harta is the most expensive in terms of PE while Supermx is the cheapest. I had sold my Harta and convert it to Supermx .

The world population.is about 7.8 billions. Assuming 80% of peoples living in populated developing countries and 20 % living in developed countries . If the per capita usage of developing countries grow to average 50 pcs and deveped countries grow to average of 350 pcs in the next 5 year , then the world average usage will be 50x 0.8 + 350x0.2 = 110 . Total demand per year will be 7.8 x 110 = 858 billions pcs. This is more than double of 420 billions capacity for this year. That means even the total glove capacity grow by 15 % per annum, there is still no oversupply.

In fact, both topgloves, supermx and comfort reported increasing ASP s for latexx gloves last month. The per capita usage of gloves for the.highly populated developing countries ate still relatively low at 5 to 30 pcs per person per year compared with 150 to 300 of those developed countries like US , Europe and Japan.

With India and some Latin.America countries having a big surge in.infected cases, these countries will buy more latexx gloves which is cheaper at half the price of Nitrile gloves. These demands will benefit topglove and supermx which still.have fairly high.percentage of latexx gloves production.

When we talk about ASPs , we must be specific as all the top 4 glove manufactuterers have.different mix of products and there are normal ex factory prices, spot sales prices , OBM.sale prices. Harta manufacture almost entirely Nitrile gloves which has much higher ASP than latexx gloves. The demand for Nitrile is also the highest. Topglove allocated 20 to 30 % of its sales through.spot sales which can be more than double the normal ex factory prices during the periods which the lead times exceeded more than 12 months. Kossan and Harta.also started spot sales in the last few months with allocation of about 15 to.20 %. Although supermx do not have spot sales, it has about 58 % of its total sales goes through its OBM channels directly to the end customers .This OBM.ASP s can be more than double the price of ex factory.prices. Hence total margins of OBM sales are much higher than the normal sales to independent.distributors. The product mix between.the 3 companies are also different. Topglove is about 50% nitrile, 40 % latexx and 10 % vinyl while.kossan is about 80 % nitrile 20.% latexx and supermx 70 % nitrile and.about 30 % latexx gloves.
So when we.quote.ASPs, it can be the nitrile , the weighted average , spot.prices , OBM prices. We need to be specific to have real meanings.

Kossan excellent Qtrly result is a testimony that Topglove coming qtr result will.be better than previous qtr. Meanwhile , we expect Harta and Supermx also announce record results respectively in the next few days or next week.

Wow, Kossan result is really surprising good . Almost double Q OQ earning. Expect.Supermx and Harta to.do very well too. Cheers

Obviously, kyy has lost touch with glove future outlook. We do not know where he got the information of over supply. One day , he talk east, another day he talk west.

Since the markets rumour that supermx will be replaced by MRDIY in our BURSA Index, it is.natural that comparison.will be made between the 2 companies. The projected 2011 eps of supermx is 25 x more than.DIY but the share price of supermx is only 1.4x of MRDIY share price. You can see a big disparity how MR market is valuing these 2 stocks. Supermx , a company with more than 30 % earning CAGR and with a cash of 3.7 billions plus net profit margin of more than 50 % is highly undervalued .