AmBank Research says glovemakers fully valued, downgrades to 'neutral' KUALA LUMPUR (Aug 25): The run-up among glove counters may have peaked, said AmBank Research, which has downgraded its call on the sector to “neutral” from “overweight” in view that the share prices are fully valued. In a research note this afternoon, AmBank Research opined that the elevated average selling prices (ASPs) enjoyed by glovemakers “will begin to taper off in 1Q21”. The research house has Top Glove Corp Bhd, Kossan Rubber Industries Bhd and Hartalega Holdings Bhd under its coverage. “Share prices of all of the glove companies under our coverage have exceeded their target prices,” it said. “We believe that at current share price levels, the valuations for glove companies under our coverage have fully priced in the companies’ earnings outlook,” it said. It added that “PE valuations are demanding” pointing out that Top Glove is currently trading at CY21F PE of 43.3 times, which is two standard deviations (SD) higher than its three-year average forward PE of 28.9 times, while Kossan Rubber’s CY21F PE of 26.0 times is almost 1SD higher than its three-year average forward PE of 23.7 times, and Hartalega is trading at a CY21F PE of 40.9 times, which is slightly higher than its three-year average PE of 39.5 times. AmBank Research noted that the planned capacity increase of 126 billion pieces or 54% by end-2022 “will more than offset” demand increase, and that the recent strides in Covid-19 vaccines will affect ASPs as well. AmBank downgraded Top Glove and Kossan to “hold” with unchanged fair values of RM25.70 and RM15.74 respectively, while maintaining a “hold” call on Hartalega with fair value of RM18.74. Currently, no glove stocks in Malaysia have any “sell” call by analysts covering the companies.
ambank report just shows how uneducated analysts are one day drop then immediately they write negative stuffs on glove counters if glove continue to go up nxt week then confirm write another article say glove can go more lol
When you look at the bright side, a pair of sunglasses you must have, for the bright dazzle is sometimes blinding, and lead you wrongly to the dark side. And when you go take vaccine, remember to look at the nurse's hands for the bright side, do not wear sunglasses, just to check which brand of gloves she might be wearing, you might find Comfort among other brands, and the Comfort touch the nurse could offer... Then you say shit, I wish she doesn't wear gloves... But do you think that SOP would permit? Back to your bed at night, and your wife ask if you buy condoms, you say ya a packet of 3, your wife kicks you down the bed and shouts "I told you to buy a BOX!!!"
Be Greedy when Others are Fearful, Be Fearful when Others are Greedy. Up and down is inevitable. Comfort fundamental is intact. Will reload if fall below 4 again. Dpharma, Pharma, Solutn, Bintai, HWGB, Ahealth, YSPSah & Kotra may be for goreng but these are not vaccine producer thus earning (if any) is very limited. Ultimately, if safe and high efficacy vaccine is found in 2021 onwards (though the chances is low because scientist do not know Covid-19 well thus only shooting in the dark), we may have to buy under the vaccine producer terms and conditions and NOT as what our government painted or desired. For your info, all the big pharma factories i.e. MSD, Pfizer, Schering Plough, etc are in Singapore, not Malaysia.
"mf" >> Aminvest only cover Kossan, TG and Harta, never touch Supermax because its QR just released and it was bombastic, next QR may be RM800M or more thus double of last QR. Share is forward looking or at least 6 months. When the next QR is released, all analyst will revise the TP. BTW, Harta forward PE is slightly below its average PE for last 3 years based on the share price in last one week. TG and Comfort QR will be released in Sep and it would be super-good.
Nevertheless, 90% of the analysts still maintain BUY call for glove stocks and with favorable TP.
By the way, Aminvest opined that vaccine will only be available from 2H21 onwards and glove demand remain high due to stricter hygiene measures. Please bear in mind, WHO and CDC is of the opinion Covid is too widespread and there is no way to end the pandemic. Even if vaccine is able to bring down the cases, stricter hygiene measures remain in place. Very likely, airline, cruise, hotel, etc will necessitate using gloves when their businesses pick-up eventually though not anytime soon.
PARIS: Researchers in Hong Kong Monday identified what they said was the first confirmed case worldwide of Covid-19 reinfection, raising questions about the durability of immunity, whether acquired naturally or with a vaccine.
So vaccine may not be the touted silver bullet, and even to come out with a safe and >50% effective vaccine is like shooting in the dark. Scientist still do not know well about Covid-19, and discover something new every month. Only the politicians and media "seem" to know more about the vaccine than the scientist.
AstraZeneca starts trial of Covid-19 antibody treatment BENGALURU (Aug 25): British drugmaker AstraZeneca has begun testing an antibody- based cocktail for the prevention and treatment of COVID-19
Many investors were frightened by AmBank’s publication and sold their holdings aggressively. As a result, Top Glove dropped Rm 2.50, Supermax dropped Rm 2.30, Harta dropped Rm 1.00, Ruberex dropped 54 sen and Comfort also dropped 54 sen.
Covid 19 pandemic has been affecting everybody and all the listed companies with the exceptions of glove stocks and other medical products for the prevention of the virus. Investment Banks including AmBank usually have a basket of stocks and they have to sell all their holdings to cut loss to buy glove stocks. AmBank would have been buying Glove stocks and all of them have gone up a few hundred percent in the last few months.
Many investors strongly suspect AmBank purposely downgrade all the glove stocks so that it can continue to buy at cheaper prices.
Perhaps Security Commission should look into this case. -Uncle KYY-
need kyy give some kick then ppl will believe back omg why our stock market like this... believe in bottle companies. BOTTLING. if wanna buy vaccine companies please refer pfizier or cansino why bottling company also want aiyooo.
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