gloves will be the norm in future. It will always be needed not just covid but for any other virus. So chill ... If they give a good dividend or free warrant take it...
It is up and down... on Bursabet. Gloves are so cheap now compared to the rest and still making money till Next year-end. Buy... there will be another round of going to 3 to 4 later....
KUALA LUMPUR (June 9): Top Glove Corp Bhd expects average selling prices (ASPs) of gloves to drop further in the coming month due to weaker demand from the US and lower raw material costs.
Its executive director Lim Cheong Guan noted that the ASP of nitrile gloves fell 20% in Top Glove's third financial quarter ended May 31, 2021 (3QFY21).
"The ASP adjustment was in line with market pricing trends and lesser sales volume to the US," he told a virtual press conference held in conjunction with the announcement of the group's latest quarterly results.
Lim expects lower nitrile latex prices as costs of the raw materials, namely butadiene and acrylonitrile, are expected to decline by 10% and 6% respectively between May and August.
"A lower natural rubber latex concentrate price is expected in the coming months as the wintering season ended in May 2021, and yields are expected to improve," he added.
The world's largest glove manufacturer posted a softer quarter-on-quarter (q-o-q) performance for 3QFY21.
Its net profit fell 29.03% to RM2.03 billion from RM2.87 billion for 2QFY21, while revenue shrank 22.42% to RM4.16 billion from RM5.37 billion, as the group was barred from exporting to the US.
The group said the weaker q-o-q performance was owing to a decline in ASPs by 16%, a lower sales quantity following a temporary halt in shipments to the US from Malaysia and higher latex as well as natural rubber latex concentrate prices.
On a year-on-year (y-o-y) basis, the group’s quarterly net profit jumped almost five times to RM2.04 billion from RM347.9 million a year earlier on a higher revenue.
Revenue climbed to RM4.16 billion for 3QFY21 from RM1.69 billion previously.
Despite the weaker earnings performance, Top Glove declared a dividend of 18 sen a share, including a special dividend of 5.3 sen.
Top Glove gained six sen to close at RM4.84 today, with a market capitalisation of RM39.72 billion. It saw 34.54 million shares traded.
Comfort is good. No doubt abt it. Going forward, profits will become lower due to recovery, vaccinations, ASPs, competition, etc.
Mkt conditions, trends, environment, industries, competition, etc. change & move forward. No stk can continue dominating & give high returns & dividends permanently. Perhaps, high-tech and medicine maybe exceptions due to patents & monopolies.
Projections are good but mkt conditions change very quickly due to numerous factors including faster & rising vaccinations, recovery, lower infections, etc.
If you want to not put all yr eggs in 1 basket or consider an alternative, RWLV is opening on June 24 & Grand Opening on July 4 in Nevada, USA.
Wukong TP 0.5 is even lower than Pre COVID. WTF man… if u have to put in your 2 cents… look at AA who is making losses and have 2b debts. This company is growing despite the lower ASP and COVID will be around for a long long time. Use some brain lah…
Like W. Buffett said, Sell if you can find something better... like better a bargain counter with greater earnings/no debts (No company can go bankrupt with little/No Debt). Currently, there is no better bargain than gloves. All recoveries and techs are already up there and the risk is greater for a correction. Also, the economy is still like sh!t with lockdowns, MCO, CMCO etc... as covid is not going to go away soon,
Flat...low ass volume.... as with all gloves... So out of favor now.... What other counters to invest? No good bargain out there. All recoveries/tech at ATH. With the current economic situation, it is riskier than gloves in terms of earnings.
Most people like to eat fried food, that's why they go for goreng stocks that made losses or little profit and are not comfortable with Comfort that made RM173m PBT last quarter. Assuming PBT starts dropping 25% every quarter, the PBT for next 12 months hopefully should still be around RM 350m barring any unforeseen circumstances. How many companies can earn this much profit with a estimated PE of around 5? Tempting to get the bonus warrants (Exercise price RM 2.30) of 3 for 10 going ex next Wednesday. Waiting to get a good price from short sellers.
Ya... for now. Not hot at all.... That goes for all gloves too. Sad... P/E damn low, good earnings, no debts, good dividends/WC but everyone is negative because of decreasing ASP. No anticipation of Virus variance, long term vaccine effect, difficulties in vaccinating all and recoveries at ATH now. That is how Bursabet goes... Going to have to hold it LT now...
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Albukhary
3,045 posts
Posted by Albukhary > 2021-06-03 00:40 | Report Abuse
感觉市场开始慢慢回来了。
希望这一两个月大家持有的股票慢慢涨上来。
只要你觉的这是个好公司,就继续持有吧。
套句冷眼的名句:-
有成长,不要卖。
成长长,长持有。
加油。