Meanwhile, TA Securities Holdings Bhd analyst Tan Kong Jin wrote in a note today that based on the current expansion plans of existing glove manufacturers, entry of new players and aggressive glove production capacity expansion by China, TA Securities believes that there is a possibility of glove oversupply in 2022.
"In our forecast, we expect a surplus of 40.3 billion gloves in 2022 (assuming no delays/changes to the targeted expansion plans),” Tan said.
and if you think your variable and fixed costs are low and can compete, you will still expand and fight it out. as usual, Analyst are NOT businessman. Businessman think differently from Analyst.
"In our forecast, we expect a surplus of 40.3 billion gloves in 2022 (assuming no delays/changes to the targeted expansion plans),” Tan said.
oversupply by 2022? lol. so many reports, so many studies, so many interview with director related to the industry all say demand supply catches up 2023. now surplus 2022? really funny analyst
Local investment banks/ research houses want the investors to feel more pessimistic than 3 months ago then they have come out few reports to talk the threats of big 4 glove counters while Delta variant started to spread in U.K., Europe , half of Asia n USA... If in 2022, supply a bit more than demand also don’t need to be over pessimistic coz big 4 n comfort can adjust their expansion plans in 2022-2023 ... The research houses still kind of optimistic while JP Morgan downgrading Topglove TP in last December then these 2 months , many local research houses turned to be pessimistic...
mahsing secures order till september ave price between 85-115 usd/1000 piece. Comfort boss said softening price for his gloves during agm 60-90 usd/1000 piece and demand still strong. Have chance another good result i guess?
The mgt of Comfort issued the.convertible warrants with the aim of raising abt RM400 million to finance their expansion plan. RM2.30 + 1 WB = 1 new Comfort mother share. The warrant owners with the right frame of mind are not likely to convert the WB to mother share unless the mother share price is above RM2.30. Because it is cheaper to buy rhe mother share which is now only RM1.96. I strongly believe the mgt will push up the mother share price above RM2.30 soon after the listing of WB.
So today is the last day to buy the mother share at an attractive price.
Has anyone received his/her Comfort warrants? Warrant suppose to be issued on 29 June. I have not received mine. The warrants will be listed tomorrow (6 July).
If someone bought the warrant at 30.5c that means he is actually paying RM2.605 (RM2.30 + RM0.305) if he convert the warrant to an ordinary share within 5 years starting from today.
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