Blog: What to expect in terms of valuation for the gloves makers - felicity

3 people like this.

8 comment(s). Last comment by CynicalCyan 2020-12-19 17:43

RJ87

5,134 posts

Posted by RJ87 > 2020-12-18 00:23 | Report Abuse

The part sbb is correct...

Harta Punya boss own 50%. Not easy to move the price. TG hv to reduce shares owns buy retailers from SBB.
This way profits will dilute less from dividend. And reports investment profits.

holely

22 posts

Posted by holely > 2020-12-18 08:49 | Report Abuse

say so much but where's the valuation?

witan

780 posts

Posted by witan > 2020-12-18 08:55 | Report Abuse

Valuation is entirely up to your judgement. My call TopGlove TP rm10-11 based on 2021-2022 profit. Their order book is already secured till Q2/2022 why worry

WHYO0001

42 posts

Posted by WHYO0001 > 2020-12-18 11:00 | Report Abuse

Thank you felicity for this note.

is this a concern to investors?
Placement of Investment securities -1,003,695,000

stockraider

31,556 posts

Posted by stockraider > 2020-12-18 12:53 |

Post removed.Why?

tallman

924 posts

Posted by tallman > 2020-12-18 12:55 | Report Abuse

I remember he/she had wrote an article on May / June said gloves were overvalued. However the shares price skyrocketed to the peak.

newbie8080

2,765 posts

Posted by newbie8080 > 2020-12-18 14:26 | Report Abuse

I think the best valuation for glove counters is post Covid-19 and after 2024 where demand is expected normalise, though still much higher then pre-Covid-19.
My take is pre-covid-19 , world demand is approximately 260 bil per annum in 2019
Post Covid-19, world demand should be somewhere between 350 bil to 370 bil per annum in 2024 onwards.

Supply side by 2024 from Top 5 largest and small players worldwide may come in between 110-130 bil per annum.

Based on this estimation, demand will almost offset the large incoming supply in 4 years time. Possible small oversupply of 20bil-25 bil per annum which may cause ASP to normalise toward USD35-USD45 level which is 50%-80% higher pre-covid 19 ASP.

CynicalCyan

168 posts

Posted by CynicalCyan > 2020-12-19 17:43 | Report Abuse

Imagine this scenario.

Tim and Henry are fishermen. They found a treasure chest in the sea this year.

Tim decides to buy shares now.

Henry decides to save his windfall for the future.

Who is more prudent in money management? Can Tim and Henry find a treasure chest every year?

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