Posted by Benny1123 > 2021-09-21 20:14 | Report Abuse

Company wants keep the money for share buy back.. Now so cheap.. Clever comfort..

Posted by selesa2020 > 2021-09-21 20:14 | Report Abuse

Economy crisis might hit sooner than thought, top US economists predict October could spell the history worse crash disaster. So please trade with care.

Posted by canbuyla > 2021-09-21 20:17 | Report Abuse

such good results also can move the share price... what's going on Lau ?

Posted by arv18 > 2021-09-21 20:19 | Report Abuse

Company performance is not relevent. ASPs not relevent. Until the de-leveraging has happened, the shares will continue to fall.

Someone - not sure who - maybe a "super-investor" has used glove shares as collateral to buy other shares (maybe even in other glove companies). Since all the gloves shares are falling, this causes a domino/waterfall effect.

Completely normal.

Posted by Sneakpeek > 2021-09-21 23:22 | Report Abuse

Decline 32% qoq...so based on projected dwindling ASP..can expect another 30% drop next Q?

Posted by gemfinder > 2021-09-22 08:00 | Report Abuse

Comfort Gloves (CG MK)
Anticipating Weaker Quarters Ahead
Sell (from Neutral)
Target Price (Return): MYR1.21 (-12%)
Price (Market Cap): MYR1.37 (USD190m)
ESG score: 2.56 (out of 4)
Avg Daily Turnover (MYR/USD) 7.90m/1.85m
Analyst
Sean Chew
+603 92808801
sean.chew@rhbgroup.com
Share Performance (%)
YTD 1m 3m 6m 12m
Absolute (54.2) (23.9) (36.3) (37.2) (60.1)
Relative (48.2) (24.7) (33.6) (31.3) (62.2)
52-wk Price low/high (MYR) 1.37 – 5.08
Source: Bloomberg
 Downgrade to SELL, new DCF-derived TP of MYR1.21 from MYR1.95,
12% downside. Comfort Gloves’ 1H21 (Aug) results came above
expectations, due to its better-than-expected sales volume. Looking ahead,
earnings should continue to normalise, as ASPs find an equilibrium.
However, given its lower economies of scale and higher cost base, we
believe the company’s margins are at risk of further compression should
price erosion become steeper.
 1HFY22 core net profit exceeded our expectations, at 98% of our fullyear estimate. We believe the earnings beat was attributed to the higher
sales volume achieved. However, net profit declined 31% QoQ as the ASP
began to descend from its highs. Additionally, a single interim DPS of 2 sen
was declared for the quarter, bringing total DPS to 6 sen for 1HFY22
(implying a 9.5% payout ratio).
 Challenging outlook. Its glove ASP should continue to decline as the
market adjusts to the new equilibrium. We believe prices could reach an
equilibrium by mid-2022, potentially bottoming at USD27.00 (nitrile) and
USD21.00 (latex) per 1,000 pieces, with the market pricing reverting to
being based on the cost-plus model. However, smaller manufacturers such
as Comfort are at risk of margin compression, should prices overshoot to
the downside, as it has lower economics of scale and a higher cost of
production. Additionally, sales volumes may be hampered in 3Q21 by the
imposition of EMCO during August. We revise our ASP assumptions to
USD27.00 and USD26.00 for FY23-24F (from USD44.00 and USD38.00).
 Production capacity to increase by 1.8bn pcs. Comfort is expected to
commission an additional seven lines towards the end of FY22. Once it is
completed, it will have a production capacity of 8.6bn pcs pa. Following this,
the company aims to grow capacity to 25.2bn pcs pa through the
construction of a new production facility in Bemban – although targeted
dates were not disclosed. That said, we would like to highlight possible
delays in expansion, given the quicker-than-expected price erosion.
 Following the reallocation of sector coverage, we have revised our ESG
score to 2.56 (from 2 previously) and lift FY22F earnings by 46%, after
increasing our sales volume assumption. However, we slash FY23-24F
earnings by 70% and 63%, after accounting for the revision in ASPs.
 Downgrade to SELL, with a new TP of MYR1.21. Given the quicker-thanexpected price erosion and the possible risk of a steeper price war, smaller
manufacturers like Comfort are in a much less favourable position to ride
out the uncertainty. Consequently, we see few near-term re-rating catalysts.
Our TP implies 11x FY24F P/E (normalised earnings base), at -1SD of its
pre-pandemic 5-year mean – which we believe is justified, given the greater
margin compression risk.
 Upside risks: Higher-than-expected ASPs, rapid capacity expansion, higher
utilisation rates, and favourable USD/MYR and raw material price
movements.

Posted by Bgt 9963 > 2021-09-22 09:05 | Report Abuse

Down trend...!

Posted by Shines > 2021-09-22 11:41 | Report Abuse

Whick 1.30 to 1.40 per share Co. made 300++mil for 6 mths?

Posted by Dannyfyl88 > 2021-09-22 12:58 |

Post removed.Why?

Posted by dusti > 2021-09-22 13:19 | Report Abuse

VICTIMS HAVE MOVED TO MRDIY. Consider?

Posted by Benny1123 > 2021-09-22 13:19 | Report Abuse

Ruberex share buy back, price no more dropping, when comfort?

Posted by Dannyfyl88 > 2021-09-22 13:27 | Report Abuse

Ya, soon... need to payoff new factories. Nothing this cheap will be this low forever...especially still making good money

Posted by FactCheck > 2021-09-22 13:31 | Report Abuse

It was still a good quarter for the company. If the decline of profit over the next few quarters is kept at 30pct or less. We're already looking for a RM 2.00 company @ P/E 5 ... Guess it's just whether the IB analysts are right about quarter-on-quarter outlook... it would be great if the next quarter it didn't decline, but instead stays flat or increases slightly for Comfort. That would be phenomenal.

Posted by canbuyla > 2021-09-22 13:44 | Report Abuse

unlikely no decline, due to EMCO happened at its main factory. for nextq I see a 50% PAT drop fr this q

Posted by IMwhatIM > 2021-09-22 13:48 | Report Abuse

Do you call this a laughing stock? PE multiple of 1 ( only one).

Those who switched from mother share to WB fast enough they got away with minor scratches only and that is only if they switched out very early.

For the rest, it is a waiting game.

580 million issued Comfort shares is not a large number compared to Supermax or Top Glove. I still feel that this is a cornered stock and when the major shareholders decide to play it up then everyone in this room can get better prices.

There is still a glimmer of hope. Nothing is dead yet.

Posted by khatulistiwa1234 > 2021-09-22 14:07 | Report Abuse

Success isn't just about what you accomplish in your life , it is about what inspire others to do .

Posted by khatulistiwa1234 > 2021-09-22 14:08 | Report Abuse

I see the success road path on this COMFORT , keep forging ahead .....HEAVEN FARM IS HERE .

Posted by Dannyfyl88 > 2021-09-22 16:17 | Report Abuse

The only one in red. WTF. This counter down the most in the last 5 days

Posted by ckcheng > 2021-09-22 16:24 | Report Abuse

MPI net profit per quarter only RM75mil, but share price RM45;Comfort NP per quarter RM148mil, but price RM1.33. wht logic is that?

Posted by Dannyfyl88 > 2021-09-22 16:45 |

Post removed.Why?

Posted by Ryan83 > 2021-09-22 16:51 | Report Abuse

Very disappointing red day for Comfort share price and stingy dividend 2 sen only

Posted by Start_0f_the_bull > 2021-09-22 17:26 | Report Abuse

Maybe people scared history repeat. Get dividend 2c, after ex-div down 10c just like what happened in last quarter.

Posted by ocbc > 2021-09-22 17:44 | Report Abuse

why owner sell so cheap ??

DATO' LAU ENG GUANG 17-Sep-2021 Disposed 270,000 0.378 View Detail
DATO' LAU ENG GUANG 10-Sep-2021 Disposed 2,500,000 0.396 View Detail
DATO' LAU ENG GUANG 08-Sep-2021 Disposed 1,300,000 0.378

Posted by yumchar > 2021-09-22 18:14 | Report Abuse

Many analysts are calling BUY for MrDIY with target prices near to RM5 and SELL for all glove stocks. Just for fun, let's do a DIY comparison on whether we should invest in MrDIY. At current price of RM 3.90, MrDIY EPS for the current quarter is 1.31 sen with a trailing P/E of 57. Comfort at RM 1.35 current quarter EPS is 25.64 sen with a trailing P/E of 1.3. The market capitalisation of MrDIY is RM24.4b and Comfort RM 786m. Will MrDIY achieve a P/E of single digit within the next 4 quarters?

Assuming current price of RM 1.35 of Comfort is maintained and EPS drops 30% every quarter for the next 4 quarters, it's trailing P/E will still be about 3.0. If EPS stabilise around 6 sen per quarter by then, the forward P/e will be about 5.6.
If there's no windfall tax, this stock with good management should remain rewarding in the years ahead but holding a stock long term may not be a good strategy if the trend is against us. Take profit whenever possible and buy back when opportunity comes. As the saying goes, "A breast in hand is worth two in the bra".

Posted by jolow > 2021-09-22 18:32 | Report Abuse

sell faster. dont too late. u will get burn

Posted by aasvogrl > 2021-09-22 22:50 | Report Abuse

市场对这只股也莫免太过悲观，一只拥有RM1.54 净资产、RM0.53净现金，目前处于1倍多的市盈率。手套价格今后将大幅下跌，这个是事实。看起来，每个季度也会有6仙，那么市盈率也只有5倍多，也是相当便宜的。

Posted by Ryan83 > 2021-09-22 22:58 | Report Abuse

KUALA LUMPUR (Sept 22): The government is contemplating and studying the implementation of a one-off higher tax rate to be imposed on companies that have generated extraordinary profits during the Covid-19 pandemic.

The government is looking at a few ways in which it can increase its revenue, including implementing the taxing of capital gains on shares and also imposing a one-off higher tax rate on companies that have obtained extraordinary profits during the pandemic.

Posted by khatulistiwa1234 > 2021-09-23 07:59 | Report Abuse

Improve my desire on huge purchase on this from peer to lower stock , with HUGE CAPITAL in hand , its known well done glove stock , i not doubt it further diver down , headache for me , if i not have it at this period , people scare or frighten , actually is golden opportunities ..... the flow energy is even positive .

Posted by khatulistiwa1234 > 2021-09-23 08:01 | Report Abuse

I use trolley to shopping ....sell all to me ....cheap chips , if i effort to digest , i will take away .

Posted by khatulistiwa1234 > 2021-09-23 08:02 | Report Abuse

If not me purchase , off shore also highly aim too .

Posted by khatulistiwa1234 > 2021-09-23 08:52 | Report Abuse

IF REALLY IMPLEMENT ...ORE THREATEN BY HUGE MIGRATE OUT FUND ...FROM EXTERNAL OFF SHORE , BANKRUPT ORE IS FITTED .

Posted by NatsukoMishima > 2021-09-23 08:58 | Report Abuse

（新加坡22日讯）新加坡新增1457起新冠肺炎确诊病例，创下该国单日确诊新高。

新加坡此前单日确诊最高纪录，是去年4月20日的1426宗.

Still a very long road to declare the pandemic is end in the world , vaccines not so efficiency now only PPE like mask,glove,sanitizer will give human more protections ! Spore is the best vaccination rate with over 82% fully vaccinated people but it still break highest record of cases !

Posted by NatsukoMishima > 2021-09-23 09:02 | Report Abuse

The losers in stock market are the people who doesnt understand the real meaning of fundamental n just simply panic sell in short term down trend while the stock FA is still solid !

Posted by Dannyfyl88 > 2021-09-23 09:18 |

Post removed.Why?

Posted by khatulistiwa1234 > 2021-09-23 10:05 | Report Abuse

LATER ON 1.90

Posted by khatulistiwa1234 > 2021-09-23 10:06 | Report Abuse

WEEK COME 3.70 , TAKE MY WORD .

Posted by Ryan83 > 2021-09-23 10:51 | Report Abuse

Going to test previous low 1.28 soon and very disappointing 2 sen dividend

Posted by mfdzk > 2021-09-23 11:38 | Report Abuse

current price doesn't make sense.. way below NAPS RM1.51...

Posted by AlexT12 > 2021-09-23 12:22 | Report Abuse

ya, doesnt make sense. no limit down. i suppose within this week all glove going to be trashed. next week monday even worse

Posted by khatulistiwa1234 > 2021-09-23 12:32 | Report Abuse

The worst is the best for me , i purchase even cheap , go ahead promote more disaster ....i can even buy cheap cheap ...0.70 - 0.60 even better .

Posted by khatulistiwa1234 > 2021-09-23 12:32 |

Post removed.Why?

Posted by yoyo > 2021-09-23 12:41 | Report Abuse

now i believe share market is insane, we can really buy stock at dirt cheap.
A company making so much money yet its share price so cheap

Posted by khatulistiwa1234 > 2021-09-23 12:52 | Report Abuse

GOD want the collapse , not once can stop it .....

Posted by khatulistiwa1234 > 2021-09-23 12:54 | Report Abuse

I Learn the lesson , avoid playing stock any more ....1997 my first lesson , 2021 another PEER LEVEL lesson , i HOLDING MY PHD DEGREE now , COMPLETE LESSON , NOT MORE LEARNING STOCK ANY MORE AWARDED ....

Posted by khatulistiwa1234 > 2021-09-23 12:55 | Report Abuse

FREE OR AVOID ENTRY ...LIFE ONLY BRIGHT BACK .BYE .

Posted by Dannyfyl88 > 2021-09-23 12:55 | Report Abuse

I laugh also... Will just buy and buy... This ridiculous price is an opportunity of a lifetime. In 3 years, can easily triple from now. Look at tech Genetech... RM40 and P/E of 400. This makes 30X more money and P/E of 1.2. WTF...

Posted by IMwhatIM > 2021-09-23 12:57 | Report Abuse

I strongly believe the buyers of the mother and WB are the people who know the game plan of the company and these people have the holding power. There are only abt 580 million shares and it is a cornered stock.

The NTA is now higher than the market price and it shld not stay that low for long time, especially when it is a very healthy company.

If you know what you are in for and believe in the fundamentals of the company, these should not disturb your sleep.

Have peace of mind.

Posted by khatulistiwa1234 > 2021-09-23 13:06 | Report Abuse

peace mind in FAIRLY PARK possible , SINK DIVER ALL GLOVE COUNTER , titanic , decade in bottom lower DEEP OCEAN .

Posted by khatulistiwa1234 > 2021-09-23 13:07 | Report Abuse

RIP ALL ...2021 MALEVOLENT is landed , focus on GLOVE COUNTER .

Posted by julian1981 > 2021-09-23 13:07 | Report Abuse

history will repeat itself. let's wait for the gloves to shine again.