Posted by Goldberg > 2020-06-06 10:21 | Report Abuse

Credit Suisse raises target price for Top Glove to RM23, expects record FY21

KUALA LUMPUR (June 4): Credit Suisse has raised its target price for Top Glove Corp Bhd to RM23, more than double of RM11.30 previosly, on the ground that there has been a recent rise in ad hoc and spot orders by government agencies needing urgent deliveries.

In a note dated June 3, Credit Suisse analyst Joanna Cheah said while pricing was not locked in upfront for these volumes, the group took deposits between 10% and 30%, based on projected average selling price (ASP) increases depending on the expected month of delivery and thus, Top Glove had decided to allocate 10% of its capacity for these spot orders.

"Given the long lead time for normal orders, it is therefore no surprise that ASP for the ad hoc spot orders is much higher.

"According to management, some of these orders were priced above US$100 per 1000 pieces, which is more than three times higher than the current blended ASP for the normal orders," Cheah said.

In addition, while the company was previously guiding for 5%-10% increases in ASP every quarter, given the further squeeze in demand-supply for gloves, it was now guiding for a monthly double-digit ASP increase at least for the next two months.

"Given the revised strategy and ASP guidance by the company, we have raised our FY20 (financial year 2020)-FY22 earnings per share by 20%-135%. We now expect the group's earnings to grow 182% in FY20, a further 122% in FY21 but decline by 63% in FY22 as ASP normalises.

"Our earnings forecast assumes that ASP will rise by 20% in FY21 for both nitrile and powder-free gloves, and decline by 20% in FY22," she said.

She added that Top Glove's results for the third quarter of FY20 set to be released on June 11 are expected to be strong and should drive further rerating of the stock.

Posted by CharlesT > 2020-06-06 10:22 | Report Abuse

Philip no see one..

He only see 10 years history..

Posted by CharlesT > 2020-06-06 10:25 | Report Abuse

Mayb too painful for him to see...so he chosed not to c..

We all knew that he sold all his topglove at rm10+ not long after holding for 10 years..

Every rm1.00 up heart very painful loh..

I no see i no see i 10 years record very good very good i heart no pain heart no pain

Posted by CharlesT > 2020-06-06 10:26 | Report Abuse

10 years later pchem very good topglove very no good i no die i no die yet

Posted by CharlesT > 2020-06-06 10:29 | Report Abuse

I no c topglove this 2 years i no see i very happy i no heart pain i m 10 years value long term investor

They no good no good they r speculator they no good i no heaŕt psin no heart pain..

Repeat this 100 times a day philip u sure can sleep well tonight

Buy some grapes too...not sour type lah it will help u to sleep also

Posted by CharlesT > 2020-06-06 10:31 | Report Abuse

Sleep well tonight Philip..stay strong n stay alive

i will buy u bkt with abalone end dec

Posted by Goldberg > 2020-06-06 10:37 | Report Abuse

Latest Research by Maybank Kim Eng- Analyst Lee Yen Ling. TP Rm20-00

Despite the sharp rise in share prices, analysts do not think the current share price of Top Glove have factored in all the good news.

In short, in their view, glove makers will earn much higher profits so share prices should also be much higher than current price.

With optimistic prospects ahead supported by expectation of strong surge in sales volume given the Covid-19 pandemic, and wider profit margin, glove analysts are busy with revising their forecasts and target prices as the rally continues.

In a research note today, Maybank Kim Eng analyst Lee Yen Ling wrote that “massive earnings explosion in coming quarters will throw brokers’ forecasts out of the window”.

Lee has raised its target price of Top Glove to RM20, implying a 49% share price increment from the current price of RM13.38 amid expectation of higher average selling prices (ASPs) and exponential growth on glove consumption worldwide.

Maybank KimEng raised its earnings per share forecast by 37% for the financial year ending Aug 31, 2020 (FY20), 180% for FY21 and 18% for FY22 to impute for ASP hikes and spot orders until 1QFY21 (September to November 2020).

“Our earnings forecasts could still be conservative as glove players might continue to raise ASPs until June 2021,” said Lee.

“Comparing the confirmed ASPs in September 2020 against January, the ASPs have increased 40-50%. Though the hikes are steep, the ex-factory price for a pair of gloves is just six US cents. This is still very cheap for the developed markets, for example US and Europe."

Lee anticipates Top Glove’s net profit to soar to RM3.2 billion in FY21 compared with forecast of RM1.1 billion in FY20. However, Top Glove’s net profit is expected to shrink to RM663 million.

If Top Glove is able to grow its market cap by 49% to RM52 billion, this would imply that the glove manufacturer will be the fourth largest listed company in Malaysia, surpassing chemical giant Petronas Chemical Group Bhd and hospital operator IHH Healthcare Bhd, should their share prices remain underperforming.

So far, 2020 is a prosperous year for glove makers as all of their fortune has leapt by a large quantum.

Posted by CharlesT > 2020-06-06 10:42 | Report Abuse

philip no see philip no see philip philip no see all r fake all r fake only for 1Q only for 1Q cannot for 10 years cannot for 10 years Philip 10 years long term investor philip no speculator

philip no heart pain philip no heart pain philip tonight can sleep tonight sleep well philip got bakuteh to eat philip got bakuteh to eat

Posted by CharlesT > 2020-06-06 10:47 | Report Abuse

last but not least b4 i go....

philip boy dont forget my homework for you today ah..have to finish it b4 u go to bed tonight ah..

sweet dreams then..best wishes fm me



Posted by CharlesT > Jun 6, 2020 9:38 AM | Report Abuse X

Philip let me teach u..

To start with it, check n verify how much is glove selling price now..is it 200% or 300% higher than early this year?

Second, if this is true..how much will this contribute to the rise in their profit...

Thire, how long can it last? One quarter or two or more?

Happy learning... old dogs still can learn new tricks..
Yes Philip u sure can...

Posted by PureBULL ... > 2020-06-06 10:49 | Report Abuse

GLOVE is having the most wonderful bull run now.
It's harder for glove to go up another 30-50% from this high level today.
All i3 members must make at least a sen in gloves.
If NOT, do something to change ur stock selection strategy.

oso never over stay the fertile course, like un kyy who on paper made so MUCH millions operating on dayang n at the end losing bigger millions!

The next great winning stocks will appear on klse. together we must catch it at right timing, ok ...

Posted by Seek > 2020-06-06 10:52 | Report Abuse

Wait for TOP glove q result.

Posted by Goldberg > 2020-06-06 10:55 | Report Abuse

Kenanga Re-rates TOP GLOVE to RM12-10

Date: 02/06/2020

Source : KENANGA
Stock : TOPGLOVE RM12-10

Contrary to our earlier assumptions, the industry ASP has risen further month-on-month in anticipation of tighter supply and supernormal demand due to the pandemic. We highlight that TOPGLOV’s ASP for months of June to Aug is now higher by between 5% to 15%, as opposed to earlier guidance of +5%. With a diverse customer base, we expect TOPLGOV to have better pricing power and hence potentially higher-than-expected industry average prices. Hence, we raised our FY20E/FY21E net profit by 18%/28%, to account for higher ASPs. TP is raised from RM15.60 to RM20.10 based on unchanged 36x CY21E revised EPS. Reiterate Outperform.

ASPs higher than earlier guidance. We highlight that TOPGLOV’s ASP for months of June to Aug is now higher by between 5% to 15%, as opposed to earlier guidance of +5%, indicating supply tightness have further propelled ASP higher. However, spot price is about 3x the normal prices of USD28-30/1000 pieces which accounts for 5%-10% of total allocation. With a diverse customer base, we expect TOPLGOV to have better pricing power and hence potentially higher-than-expected industry average prices. We highlight that market consensus is still underappreciating the potential impact from higher-than-expected ASPs in this continuing pandemic and tight supply condition. Due to the tight supply, we expect buyers to jockey for position in order to secure allocation which will push up ASPs. Personal Protective Equipment (PPE) of which glove is one of the components is presently much sought after due to limited supply. Longer delivery lead times are indicating that demand will outstrip supply at least over the medium-term. Management highlighted that requests for huge volumes of gloves to the tune of 400m to 500m pieces are coming from countries that include Spain, France, Italy, Germany, and Saudi Arabia. This lends us the confidence that mid to high-teens growth in volume sales are achievable in FY20 and FY21 since orders have been secured up till end Dec 2020 to early 2021. The robust demand has led to longer delivery lead times which has risen to >300 days from 80 to 100 days two months ago.

Capacity expansion include: Factory 7A (operational by end-1Q 2020; 0.4bn pieces), Factory 2B (operational by 1Q 2020; 0.7b pieces), Factory 5A (operational by 1Q 2020; 2.5b pieces), Factory 40 (Phase 1 operational by 2Q 2020 and Phase 2 operational by 3Q 2020; 2.7b and 2.0b pieces), Factory F41 (2Q 2020; 4b pieces) and Factory 8A (by 4Q 2020; 3.5b pieces) to boost the group’s production capacity in 2020 by 11.8b gloves per annum to 81.9b (+17%).

Raised FY20E/FY211E net profit by 18%/28% after hiking our ASP from USD29/1,000 to USD32/1,000 and USD33/1000 pieces for FY20 and FY21, respectively.

Reiterate OP. Correspondingly, TP is raised from RM15.60 to RM20.10 based on unchanged 36x CY21E revised EPS of 55.9 sen (at slightly above +2.0SD above 5-year historical forward mean). Its merits are: (i) strong management, (ii) ability to supply in the current tight market conditions, and (iii) solid earnings growth averaging 105% per annum compared to FY20E and FY21E PERs of 40x and 28x, respectively. Historically, the stock moves ahead of two quarters of solid results.

Posted by CCCL > 2020-06-06 11:32 | Report Abuse

Why only now investment bankers are so generous to let this kind of valuations goes public. Nothing is free is this world!!!

Posted by Goldberg > 2020-06-06 11:58 | Report Abuse

Dear CCL.

The industry ASP has risen further month-on-month in anticipation of tighter supply and supernormal demand due to the pandemic. TOPGLOV’s ASP for months of June to Aug is now higher by between 5% to 15%, as opposed to earlier guidance of +5%, indicating supply tightness have further propelled ASP higher.

These led to investment bankers to be generous in their valuations. Anyway lets be patient as the quarterly results will be announced next week ie on the 11th June.

My gut feel is that it will be dazzling.

Posted by EngineeringProfit > 2020-06-06 15:09 | Report Abuse

Agree. I'm switching over to Serbadk

Posted by Philip ( buy what you understand) > 2020-06-06 15:42 | Report Abuse

https://www.thestar.com.my/business/business-news/2017/11/24/ex-ceo-of-apl-industries-stanley-thai-jailed-5-yrs-fined-rm5m/

This kind of people you trust to invest your money for you?

Posted by samyew1234 > 2020-06-06 15:44 | Report Abuse

Philip sorchai, haha

Posted by Michael Dreamun > 2020-06-06 15:49 | Report Abuse

SOUR GRAPE !

Posted by Slc1 > 2020-06-06 16:00 | Report Abuse

Everybody will know when QR out so sabar.. sabar..ok

Posted by CharlesT > 2020-06-06 16:30 | Report Abuse

Forgive the oldman lah give him a break lah...

If u sold yr 2m shares of topglove which u visited their plants 10 years ago ( n kept the shares since 10 years ago) at rm10+ few weeks ago n yr opportunity loss now is ard rm13m+ what would u feel?

If i were him i likely heart pain until heart attack cannot sleep cannot eat...

Heart no pain heart no pain i m 10 years long term investor i m not speculator i can sleep well tonight can sleep well tonight charlesT will buy me bakuteh buy me bakuteh....

Posted by CharlesT > 2020-06-06 16:33 | Report Abuse

Stanley thai big bad wolf big bad wolf supermax no good supermax no good they only raise their selling price by 3% not 300% not 300% only for 1 q only for 1 q not for one year not for one year

Tonight can sleep well can sleep well...

Posted by EngineeringProfit > 2020-06-06 16:33 | Report Abuse

I remember this too

Posted by CharlesT > 2020-06-06 16:34 | Report Abuse

Philip feel happier now?

Posted by CharlesT > 2020-06-06 16:37 | Report Abuse

Tonight can sleep better right?

Fm next week onwards dont look at topglove price anymore...assume it goes limit down n limit down again.

Posted by CharlesT > 2020-06-06 16:40 | Report Abuse

I also very heart pain on my paper loss of mnrb also cannot sleep well like u u r not alone..

We should hug together to keep warm not to fight with each other during this very difficult moment we need each other more

Posted by CharlesT > 2020-06-06 16:43 | Report Abuse

By the way once u stop crying dont forget the homework for u to do ah b4 u go to bed tonight..

Posted by CharlesT > 2020-06-06 16:55 | Report Abuse

enough lah..later Philip ask u to show yr 10 years result u die...

Posted by CharlesT > 2020-06-06 16:59 | Report Abuse

when he lost the argument he will ask u to show yr 10 years result...

Lets say even if u r lucky u can show him yr 10 years results he may want you to show yr underwear here dont ask me why

Even u can show him yr underwear he may show u stanley Thai's old news

endless....

Posted by CharlesT > 2020-06-06 17:02 | Report Abuse

philip is first class taichi master in i3

Posted by CharlesT > 2020-06-06 17:09 | Report Abuse

uncle eat shit more than u eat rice ah...respect a bit

ops typo...uncle eat salt more than u eat rice..cannot be wrong one ok

Posted by CharlesT > 2020-06-06 17:44 | Report Abuse

Uncle hold topglove tight tight for 10 years n made rm10m+...

This is the power of value investment for long term..

Even he sold all his topglove few weeks ago n earn rm10m+ less

All newbies should learn fm him...

Posted by CharlesT > 2020-06-06 17:50 | Report Abuse

Having said so mayb uncle philip can hold his investment slightly longer...say 10 years + extra few months...mayb can make extra rm10m+ or rm20m+..

My 2 cents advice...yes i knew i m not qualified to advise him my mnrb drops 50%...sigh....

Posted by stockraider > 2020-06-06 18:58 | Report Abuse

Lets be fair loh....Philip did reasonably well on this mah...!!

U r speaking on hindsight loh....!!

Posted by CharlesT > Jun 6, 2020 5:50 PM | Report Abuse

Having said so mayb uncle philip can hold his investment slightly longer...say 10 years + extra few months...mayb can make extra rm10m+ or rm20m+..

My 2 cents advice...yes i knew i m not qualified to advise him my mnrb drops 50%...sigh....

Posted by CharlesT > 2020-06-06 19:23 | Report Abuse

Better than me for sure no doubt..he made rm10m+ fm topglove for holding 10 years(though rm10m+ less if he holds few weeks longer)..

As for me i suffer 20% loss on my mnrb(not 50% lah..but if philip think if i suffer 50% loss will make him happier than 50% loss loh)..somemore may hv to buy him a bakuteh..double whammy....

Who comes to pity me leh..

Posted by JN88 > 2020-06-06 22:07 | Report Abuse

Top glove not only build factory, TOP GLOVE eat whole small company!!!!!!!!!!!!! This is why faster than HartA...

Posted by qqq33333333 > 2020-06-07 00:37 | Report Abuse

great write up by Tan..........but people are trained 1. follow ah moi analyst 2. short term quarter profits double, share tp price up 400%......

everyone is speculator, where got investor? everyone strike while iron hot, rob while fire.

got people ask meh? transformational or one off? orders drying up because no way actual usage even close to stock piling rates of last 2 months.

musical chair, hot potato, tulipland....nobody cares........got ah mo backing even.......

Posted by qqq33333333 > 2020-06-07 01:38 | Report Abuse

media driven fear....they even say US daily deaths to reach 3000 by now...but nowadays a few hundred.

Posted by CharlesT > 2020-06-07 07:07 | Report Abuse

Posted by Philip ( buy what you understand) > Jun 7, 2020 4:41 AM | Report Abuse

Your friends name is Jesse Livermore?


Seems like another sleepless night for Philip...

If Philip cannot sleep he can always come to this thread...many friends r waiting him here u are not alone

Philip dont tell me u r completely K.O. by me ytd n decided not to come here anymore just like u choose not to see Topglove's price anymore.....

Posted by CharlesT > 2020-06-07 07:08 | Report Abuse

Ytd was the worst day for Philip in I3 i think..suffering worst humiliation in I3 n being exposed his true face.....

my bad, Philip

Posted by CharlesT > 2020-06-07 07:09 | Report Abuse

Is the worst over for Philip? Maybe...i dunno....lets c

Posted by CharlesT > 2020-06-07 07:19 | Report Abuse

Posted by Philip ( buy what you understand) > Jun 6, 2020 3:42 PM | Report Abuse

https://www.thestar.com.my/business/business-news/2017/11/24/ex-ceo-of...

This kind of people you trust to invest your money for you?



Posted by Philip ( buy what you understand) > Jun 5, 2020 1:02 PM | Report Abuse

Wow my wife bought supermax shares at 90 cents 100 million ringgit, how come she don't show off like you do? She more happy then u woh.

>>>>>>>>>

But loud mouted Philip deserve to lose and Calvin finally bought TopGlove C74 at 82.5 sen (so happy now)


Wait wait wait what's going wrong here Philip?????????

Posted by CharlesT > 2020-06-07 07:23 | Report Abuse

U dont trust Stanley kind of people buy yr wife bought RM100M worth of Supermax woh..........

Posted by CharlesT > 2020-06-07 07:29 | Report Abuse

Lets say if she is still holding Supermax, at RM8.88 now she is making ard RM900M paper gain....

So yr opportunity loss of Rm10M+ in Topglove is sup sup soi lah...no reason u cant sleep well right?

Posted by CharlesT > 2020-06-07 07:35 | Report Abuse

Basing on RM100M worth of Supermax at Rm0.90 cost her shareholdings will be ard 111M+...

Fm Annual Report 2019 (as at 11 Oct 2019), only two holds more than 100M shares...

They are 1) Thai Kim Sim 278M+ 2) Tan Bee Geok 205m+

Which one is yr wife?

Thai Kim Sim or Tan Bee Geok? Or both of them??

Posted by Philip ( buy what you understand) > 2020-06-07 08:16 | Report Abuse

I made 80% on topglove in 1.5 year, then a further 20% buying on PCHEM.

You on the other hand Modus operandi when making money talk a lot cock stories keep bla bla bla, when losing money disappear from i3.

Very standard young kids all talk no action.

Lose sleep? Funny boy. I sleep better than you taking unnecessary risks in the market.

I sell overpriced overstocks overspeculated glove stocks for beaten down o&g stocks selling at cheap prices because of oil price at 20+.

But it's ok I'm sure I'll price will go up to 40 per barrel one day.

Posted by Philip ( buy what you understand) > 2020-06-07 08:19 | Report Abuse

If CharlesT can suddenly say mnrb 5% of his portfolio and gloves 80% of his portfolio, bluffing all the way, then I am sure I can say my wife owns 1 billion of Supermax stock as well.

You know? Easy to talk when you don't have to show performance results.

>>>>>>>

Posted by Philip ( buy what you understand) > Jun 5, 2020 1:02 PM | Report Abuse

Wow my wife bought supermax shares at 90 cents 100 million ringgit, how come she don't show off like you do? She more happy then u woh.

Posted by CharlesT > 2020-06-07 08:27 | Report Abuse

Posted by Philip ( buy what you understand) > Jun 7, 2020 8:19 AM | Report Abuse

If CharlesT can suddenly say mnrb 5% of his portfolio and gloves 80% of his portfolio, bluffing all the way, then I am sure I can say my wife owns 1 billion of Supermax stock as well.

You know? Easy to talk when you don't have to show performance results.


so u are just as fake as us ah?

All yr Rm80M portfolio..10 years results... news of stanley Thai went to jail....all r fake ah?

Posted by CharlesT > 2020-06-07 08:28 | Report Abuse

Calvin will be the happiest guy today...finally he knew u n him r brothers....no difference...

Posted by Philip ( buy what you understand) > 2020-06-07 08:29 | Report Abuse

I'll just wait until your next big loss for you to disappear from i3investor again. Gamblers like you win 200% one day and lose 100% the next.

Usual run of the mill speculators.

But your initial comment that fa people won't buy glove stocks is silly. I did, I have and I have earned more than 16x my money in topglove over the years. You are the one who got lucky kid.

Let's see how you compound that luck when the speculation ends.

Maybe disappear from i3investor for good this time.

Just don't forget that bak kut teh lunch this at the end of the year.

Posted by CharlesT > 2020-06-07 08:30 | Report Abuse

having said so u r right one me....i hardly sleep well since few weeks ago seeing Supermax breaking new high every now n then....

how? can share yr experience with me? Eating more sourgrapes can help or not? Seems u r eating a lot lately...might be very helpful to u i guess