FOCUS MALAYSIA, JULY 14-20, 2018 Strong demand to support earnings THE glove sector is expected to see continued demand in the second half of this year but higher raw material costs and capacity constraints could limit its outlook.
“We believe glove producers could potentially record better earnings in the quarters to come as the resilient global demand for gloves will continue to drive their earnings in 2H18,” notes an MIDF Research report.
The report notes that the Malaysian Rubber Glove Manufacturers Association (MARGMA) projects the value of glove exports this year to increase by 10% to RM18 bil from RM16.2 bil last year. This is expected to be driven by an increase in global demand of about 8% to 10% per annum. However, cost pressures could impact the bottom lines of some glove players.
Analysts expect rubber prices to remain at their current high levels for at least the rest of the year. This is in line with the agreement between Thailand, Indonesia and Malaysia (the three largest producers) which prevents the price of rubber from falling below RM4 per kg.
China’s slowing automobile sector following the removal of government incentives is another factor which could weaken the demand for rubber over the rest of the year.
Nitrile butadine prices might also increase with the rising demand for nitrile gloves. MIDF Research says the demand for this raw material could push prices up by 5-10% next year.
the US external independent lab doing the test show positive result. now the test report has been send to FDA. anytime can release from FDA detention. Can start to accumulate.
@SuperPanda Under present market scenario of heightened volatility and uncertainty, anything is possible.
Who would have imagined the big brother of the glove industry, Top Glove could have its costly 3.8 billion market capitalisation wiped off in a single day?
The valuation wiped out is more than double the acquisition price for Aspion.
@sheryn74, Ks5S The spillover impact of the Top Glove imbroglio and Ks5S quoted information have directed the attention of some glove counter investors to have a peek at industry peer, COMFORT, with a comfortable share valuation price to migrate to. The past few days have seen COMFORT steadily going up north.
when i shout BUY, you just go in. Don't worry this comfort. The boss is a very dedicated and committed boss. Sure settle one the FDA . It just a small issue.
Actually comfort received the notice on fda detentionin in feb 18. Therefore now going to 6 months already. Next month they will receive letter from fda to allow enter USA. Therefore good to enter now. Insider is buying.
if you are selling comfort due to trump or fda issue, you are making a bigger mistake. i have been quietly accumulating since it crash to 70 cents when all those monkey yelling sell. thanks to those selling to me. You will really regret on this.
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Posted by sheryn74 > 2018-07-15 17:01 | Report Abuse
After FDA approval the share price will fly up like last time. :))