Posted by Yong Ken > 2021-03-10 14:47 | Report Abuse

Can your guys see what the logic between these two statements?

Additionally, in view of the aggressive expansion by the China’s glove-makers, our DCF-based target price for Top Glove (WACC: 8.2%, LTG: 3.5%) is cut to RM4.85 (-44%) as we roll forward our valuation to FY24E (from FY21E) and lower our LTG to 3.5% (from 4.5%).

We think the planned expansion for 2021-22 could face delays due to the constraint of supply chain (i.e. shortage of NBR raw material and formers). Hence, the planned supply may spill over to 2023 onwards, resulting in a more competitive environment.

Posted by amateurJR > 2021-03-11 17:34 | Report Abuse

Too smart in analysis inapplicable in Malaysia. Malaysia is purely asentimental based goreng market.

Posted by paperplane > 2021-03-11 18:42 | Report Abuse

NEXT TIME LISTED IN HK WILL BE MORE LOGICAL REPORT. MALAYSIA PUNYA STANDARD TAK BOLEH PAKAI LAH COMPARED THESE BIG FIRMS THERE

Posted by loss9696 > 2021-03-11 21:02 | Report Abuse

Bursa Malaysia Hong Kong (HKEX)?

Posted by GwailoSam > 2021-03-11 21:22 | Report Abuse

go go hkex bye bye klse

Posted by beginner > 2021-03-11 21:32 | Report Abuse

Apparently mbb short a lot of topglov and now working hard wanna collect back with cheap price. They dug a bug hole to cover the cw and now got another bigger hole of short to cover

Posted by tksoon23 > 2021-03-12 06:25 | Report Abuse

IB TP tak blh percaya. Kalau betul, dia pun tak payah kerja lar. Just play share buy and sell jao enough. IB report hanya untuk tipu retailer

Posted by AdCool > 2021-03-12 13:38 | Report Abuse

first of all, how can an analyst know or assume what would happen in 2024? that is freaking 3 years from now! It is out of the market norm to price a valuation for 3 years in advance in comparison with 6 months. Secondly, China consumption of glove is extremely low in comparison with the US and Europe. Whatever China going to produce would mostly be taken up by China itself. Not forgetting that China does not produce raw ingredients for gloves. Hence, China may not be able to expand as quickly as planned due to such restriction. They can build the plants and install all the equipment and hire all the manpower they need but without the raw ingredients, production wont move. Not forgetting that EU and US gonna give it a tough time to get China made gloves certified for medical usages. 3rdly, the IB mentioned in Q4 2021, the ASP would drop 14% while production cost would up 16%. Now here is the misinformation. We know the industry operates by passing the cost to the customers. Hence, with production cost up continuously for 2 quarters, 23% and 16%, how can you expect ASP to drop 14%? Isn't that out of economic senses? The ASP may drop but mostly in a single digit percentage.
12/03/2021 1:20 PM

Posted by RainT > 2021-03-20 19:49 | Report Abuse

READ

Posted by RainT > 2021-03-20 19:51 | Report Abuse

@Adcool

Great insight!