Posted by x20x20 > 2020-11-10 14:53 | Report Abuse

The vaccine story will not change the demands for gloves worldwide for many, many more months to come. All industry need to use glove for hygiene purposes. This is a new norm.

Posted by TonalDrump > 2020-11-10 14:59 | Report Abuse

KUALA LUMPUR (Nov 10): After posting a strong set of results for the third quarter ended Sept 30, 2020 (3QFY20), analysts expect Kossan Rubber Industries Bhd to record even stronger earnings for the next quarter (4QFY20), in tandem with rising average selling prices (ASPs) of gloves.

Net profit for the glove maker’s 3QFY20 surged 609% to RM348.74 million from RM49.18 million for the previous corresponding quarter, thanks to higher sales volume and selling prices as demand for rubber gloves continued to outstrip supply amid the Covid-19 pandemic.

Quarterly revenue jumped 95% to RM1.03 billion from RM531.26 million for 3QFY19. For the cumulative nine-month period ended Sept 30, 2020 (9MFY20), Kossan's net profit more than tripled to RM544.6 million from RM163.78 million for the year-ago period, while cumulative revenue grew 43% to RM2.35 billion from RM1.64 billion previously.

RHB Research Institute maintained its "buy" call for the stock with a higher target price (TP) of RM9, noting that the group’s expansion plans remain intact, with its capacity already up by 10% to 32 billion pieces per year, with a further addition of 1.5 billion pieces with the construction of Plant 20, which is due to be fully commissioned by the first half of 2021 (1H21).

The research house added that Kossan also stands a chance to join the FBM KLCI next month if it maintains its current market capitalisation of around RM17.6 billion.

“We increase our FY20-22 earnings [forecasts] by 91%-160% to reflect higher ASPs, in line with the industry trend. The higher TP is in line with better earnings estimates. In the near term, we expect Kossan to register a stronger set of results for 4QFY20, in line with the industry’s higher ASP trend. In the long run, Kossan is a beneficiary of a long-term global uptrend in glove consumption,” said RHB analyst Alan Lim.

Despite a strong set of results, the stock had fallen 8.27% or 62 sen to RM6.88 as at the time of writing today, in tandem with other glove counters which topped the loser list on Bursa Malaysia this morning as news of Pfizer’s Covid-19 vaccine candidate dominated the market’s optimism about ending the global pandemic and reopening the economy. Still, year to date, the stock has enjoyed a bull run with a 227% leap.

On another note, the fresh development of the potential vaccine could hamper Kossan’s share price in the near term, noted PublicInvest Research.

“Nonetheless, we think that it would still take about two years to have the entire global population vaccinated upon the roll-out of a vaccine, therefore any short-term price weakness would be an opportunity for investors to accumulate,” it said in a note today, upgrading its call for the stock to "trading buy" with a higher TP of RM9.40.

AmInvestment Bank, on the other hand, maintained its "hold" call for the stock with a lower fair value (FV) of RM7.07.

“We like Kossan as it is one of the biggest glove producers to benefit from the Covid-19 pandemic due to its expansionary plans and efforts in improving quality and operational efficiency. However, we believe that the stock is fully valued with a price-earnings ratio (PER) of 29 times [forecasted] FY22 earnings per share (EPS),” said AmInvestment Bank analyst Thong Pak Leng.

Thong noted that Kossan’s capacity had been fully taken up until end-2021, while still receiving orders for 2022.

“Around 10%-15% of its total capacity has been allocated for spot orders. Management indicated that incoming capacity will be directed to short-term orders,” he said.


TLDR: Don't panic if you hear about vaccine. Glove demand will always be high

Posted by Letsfly > 2020-11-10 15:06 | Report Abuse

Thanks for the cheap stocks :) drop more, buy more

Posted by lhf6300 > 2020-11-10 15:08 | Report Abuse

Careplus Group Berhad - Press Statement
UPDATE ON COVID-19 SITUATION

We regret to inform that there are workers in our factory tested positive for Covid-19 and they are now under the care of a government hospital.

We had immediately taken the necessary actions which include closure of the affected factory facilities to facilitate thorough disinfection and sanitisation in accordance to the guidelines of the Ministry of Health (“MOH”).

http://www.bursa2u.com/2020/11/careplus-group-berhad-press-statement.html

will this impact share price in these few days???

Posted by Sunshine123 > 2020-11-10 15:10 | Report Abuse

Of course such news will have an impact on the price. The price is already dropping like a stone now.

Posted by bullgoup123 > 2020-11-10 15:16 | Report Abuse

Doctor also need to use glove to inject vaccine =]

Posted by Robinhud > 2020-11-10 15:25 | Report Abuse

Price discount everything

Posted by strattegist > 2020-11-10 15:26 |

Post removed.Why?

Posted by Jokers2020 > 2020-11-10 15:43 | Report Abuse

Brazil halts trials of China’s Sinovac Covid-19 vaccine

Posted by Tyron > 2020-11-10 15:43 | Report Abuse

Big players are happily collecting now.

Posted by kd88 > 2020-11-10 16:21 | Report Abuse

Pfizer说他疫苗90%有效，但他们还需克服一个技术难题

那就是运输和储存。这个听起来简单的物流工作，绝不是找个什么poslaju 或者dhl 就可以完成。Pfizer疫苗和Moderna 那支一样，这两支美国疫苗属于mRNA 疫苗，技术上属于比较新的。但是这种疫苗有个问题，就是必须在极冷环境下储存。Pfizer 那支就声称必须在负摄氏80度，比你家冰箱还冷很多。要在这个极低温环境下把大量疫苗送到世界各地直到被注射前，是个大难题。

Posted by edyske > 2020-11-10 16:22 | Report Abuse

As usual K+ has the highest drop among glove counters.

Posted by DawnRaider > 2020-11-10 16:27 | Report Abuse

https://juiceonline.com/pfizers-covid-19-vaccine-is-90-effective-but-its-storage-problem-might-delay-its-arrival/

Posted by therookieechingchong > 2020-11-10 16:40 | Report Abuse

really jokers for those said will sailang if drop till xx, but when it really came, all say run.

Posted by kdginvest > 2020-11-10 16:41 | Report Abuse

GLOVE STOCKS WILL FLY TOMORROW.

Posted by SA2023 > 2020-11-10 16:48 | Report Abuse

Top up

Posted by clement95 > 2020-11-10 16:55 | Report Abuse

collected more at 3. thanks for the cheap ticket.

Posted by Taeyeon09 > 2020-11-10 17:03 | Report Abuse

Tomorrow sure rebound

Posted by Remo > 2020-11-10 17:37 | Report Abuse

An uncompleted vaccine & reaction is like tomorrow we can start our normal life again. Eg. Go genting gamble/fly with airasia/unemployment rate back to normal/shopping/etc. Come on la! I'm happy with the news as well, but it takes time. Baru 90% success rate. Need to be perfected and save to use for everyone.

*The same Pfizer trial was halted one month ago. No report published on it yet. So much of discrepancies unsettled. Chill bro, chill...

My conclusion, OVERSOLD !

Posted by Jeju88 > 2020-11-10 17:50 | Report Abuse

Opportunity to buy and collect more.

Posted by arman70 > 2020-11-10 18:53 | Report Abuse

Pfizer stock gone up by mere 7.7%. But bursa oil and gas counters gone up by 15%. This shows how unreasonable the market is. Tomorrow many counters will pull back where they belong.

Posted by ivanlau > 2020-11-10 18:54 | Report Abuse

investment bank and big fund laugh until die as they can sapu cheap glove stocks today

Posted by keown83 > 2020-11-10 19:07 | Report Abuse

usually, gap down with bullish inverted hammer is a sign of reversal..will we see a reversal on the price back to where it previously belong? lets wait tomorrow

Posted by flyingtomoon2020 > 2020-11-10 19:08 | Report Abuse

https://www.businessinsider.com/new-pfizer-vaccine-will-not-save-the-holidays-experts-2020-11?utm_campaign=sf-bi-ti&utm_source=facebook.com&utm_medium=social

Posted by strattegist > 2020-11-10 19:17 | Report Abuse

closed red

Posted by Sneakpeek > 2020-11-10 19:47 | Report Abuse

CL first re enter lower tomorrow.. why pay now when can get lower tomorrow.. yahoo

Posted by invest4tomoro > 2020-11-10 19:48 | Report Abuse

buy K+ now when it is red. Sell when it is green. Then you can make profit.

Posted by wehcant > 2020-11-10 19:52 | Report Abuse

Week 1 - 4 Reds, 1 Green.
Week 2 - 3 Reds, 2 Greens.
Week 3 - 5 reds, 0 Green.

In the long run, fund will be exhausted if you follow this strategy.

Posted by SIPang > 2020-11-10 20:05 | Report Abuse

Yes, buy red n sell green, tomorrow buy buy buy

Posted by maxstore769 > 2020-11-10 20:07 | Report Abuse

AT is next?

Posted by Remo > 2020-11-10 20:37 | Report Abuse

https://www.theedgemarkets.com/article/top-glove-buys-back-another-894m-shares-rm699m

sorry to post about top glove news in this forum. just an example, panic selling by retailers vs big fund grab the opportunity.

Posted by Jarall > 2020-11-10 20:54 | Report Abuse

Carepls day tomorrow

Posted by Taeyeon09 > 2020-11-10 21:20 | Report Abuse

Tomorrow hoot 99

Posted by Noobee88 > 2020-11-10 22:24 | Report Abuse

I think it will be another sleepy day...

Posted by SwingTrader90 > 2020-11-10 22:45 | Report Abuse

Bad news

https://www.theedgemarkets.com/article/careplus-says-employees-tested-positive-covid19

Posted by gemfinder > 2020-11-10 22:47 |

Post removed.Why?

Posted by Noobee88 > 2020-11-10 22:58 | Report Abuse

LOL! Aiyah hope they recover soon or this K+ will flounder around again ...

Posted by keown83 > 2020-11-10 23:00 | Report Abuse

@gemfinder pfizer what? pfizer 2 days in a row red candle even though gap up..its just a matter of time before it went down again..just show how unsure traders with the vaccine eventhough the hope is there

Posted by gemfinder > 2020-11-10 23:15 | Report Abuse

Hopefuly one day u were saved by pfizer

Posted by keown83 > 2020-11-10 23:26 | Report Abuse

i choose sinovac

Posted by Parrot > 2020-11-10 23:32 | Report Abuse

Operations stop 2 days for disinfection n will slowly restart over a period of 2 weeks..This isn't great news..

Posted by irwan > 2020-11-10 23:34 | Report Abuse

Careplus Group Bhd said some workers in its factory at the Senawang Industrial Estate in Negeri Sembilan have tested positive for Covid-19. They are now under the care of a government hospital.
We had immediately taken necessary actions which include closure of the affected factory facilities, to facilitate thorough disinfection and sanitisation in accordance with the guidelines of the Ministry of Health (MoH).

Posted by irwan > 2020-11-10 23:35 | Report Abuse

Careplus executive director and group CEO Lim Kwee Shyan said the group has arranged for all of its 2,000 staff to undergo Covid-19 testing. He declined to disclose how many workers have tested positive, saying the information will be released by the relevant authorities. Lim said the operations at all its factories have been halted for two days, as they are all located at the same place. As a result, the group’s production capacities will be affected during this period, he said, adding he expects production to resume gradually over the next two weeks.

Posted by irwan > 2020-11-10 23:36 | Report Abuse

Meanwhile, Careplus will continue with its glove shipments based on the availability of stocks in the warehouse. Careplus said it is working closely with MoH to perform contact tracing and is also making the necessary arrangements for employees in close contact with the affected workers, to undergo the swab test. They will be placed on home quarantine, pending their Covid-19 test results. The group said it has also immediately activated work from home arrangements for all non-critical employees. We will continue to work closely with MoH and will adhere to the guidelines and standard operating procedures to ensure the safety and wellbeing of our employees.

Posted by irwan > 2020-11-10 23:36 | Report Abuse

glove counters came under selling, following news that Pfizer might be able to start Covid-19 vaccine production next year.

Posted by shaun723 > 2020-11-11 00:04 | Report Abuse

https://www.theedgemarkets.com/article/careplus-says-employees-tested-positive-covid19

Posted by Taeyeon09 > 2020-11-11 00:42 | Report Abuse

Glove counter sure uptrend tomorrow

Posted by bigprice > 2020-11-11 00:48 | Report Abuse

https://www.dailymail.co.uk/news/article-8933799/Volunteers-given-Pfiz...

Posted by StockHunters > 2020-11-11 02:01 | Report Abuse

sold my careplus to buy more AT shares last week. best choice i have ever made

Posted by ming > 2020-11-11 02:59 | Report Abuse

Interesting to see how market react news for employees tested positive , especially when other glove rebounding..