Health Director-General Datuk Dr Noor Hisham Abdullah warns that Malaysia could be looking at a second wave of Covid-19 infections in mid-June.
At the daily Covid-19 briefing today, he explained that the Health Ministry’s National Institute of Health (NIH) can predict the outcomes of Covid-19 cases for the next two to four weeks based on the adherence to social distancing today.
I sure that you yourself holding alot of Luxchem Shares. Luxchem is lagged behind alot of stocks. I would say the engine just started. Uptrending Phase 1 only. TP would probably can be high as RM0.8 RM1.2 RM1.6. If market is crazy enough it is heading towards RM1.6 definitely.
The group is leaded by the group's CEO, Mr Tang Ying See who is also the founder of the company. Along with his spouse, they're holding around 52% in Luxchem Corp. He has approximate 35 years of experience in industrial chemicals industry. But the bad thing is he is such a low profile person. Hardly find any news or articles regarding the company and its prospects. Apart from that, the chairman, Dato Haji Mokhtar bin Haji Samad is also the non executive chairman of Kosssan Rubber Industry. In addition, one of the substantial shareholders of Luxchem Corp, Chow Cheng Moey is the spouse of Lim Kuang Sia who is the managing director/ CEO of Kossan Rubber Industry. Thus, I think the relationship between the top management of Luxchem and Kossan will at least yield a synergy effect between the two companies.
That director need pocket money also mah, 100k shares only RM7xxxx, he bought total 150k shares at 16, 19 March, now sell it at higher price now. It doesn’t affect much for his total holdings. Also, the director only hold a very small portion (0.517%) of the company total shares issued. So we can assume that his actions just to make coffee money, and may trying to frighten retailers.
Judging from the top 3 glove counters movement, this rally will be continue for few more days, with some small hiccups alongside of cos, so Luxchem TP 0.90-1.00 remain intact
The first main growth engine of Luxchem- Acquisition of Transform Master
Who is Transform Master Sdn Bhd? ................................
TMSB is a chemical manufacturing plant who mainly produce rubber latex chemical dispersion, latex processing chemicals, latex surfactant, dispersasant & specialty chemicals for latex industry.
What is the reason behind for Luxchem to acquire Transform Master? .................................................................
Which I believe Transform Master's main customer, YTY Group is the main driver behind. YTY is the medical glove manufacturer located in Perak and they are in aggressive expansion mode.
Now, YTY Group has further expand their capacity aggressively through their third plant located at Lumut Port too, just next to SapuraEnergy Fabrication yard. There is a huge parcel of land which allows YTY group DOUBLE UP their capacity easily.
I believe their third plant has started production but yet to fully operated. As you can see from photo, the plant is equipped with workers dormitories too. With the uninterrupted water supply in Perak and strategic location beside the Lumut Port, YTY Group is in the right direction to further expand their business globally.
This share price average is 0.5 to 0.6 sen base on one year result. Looks at the price now 0.72 just raise almost 30 percent.. Compare to glove counter, 30 percent is nothing lol. I still believe the price will up more than rm1 in future soon since the glove demand been increased few hundred percent d .Good luck guys
YTY's mission for over 30 years has been to keep frontline employees safe through the manufacture of high-quality, single-use Examination gloves. Our original corporate ethos around quality, service and value continues to drive us today, making us one of the largest and most reliable manufacturers of single-use Examination gloves in the world.
Today, YTY is one of the largest manufacturers of Nitrile Examination gloves, but also a leading supplier of Polychloroprene Examination gloves, which offer unique advantages relative to Nitrile gloves. Beyond single-use Examination gloves, YTY offers single-use Surgical solutions as well, available in both the Polychloroprene and Polyisoprene synthetic polymers.
.....................
YTY Increases Its Medical Glove Donations During the COVID-19 Crisis Wednesday, April 1, 2020
“Additionally, we are providing two million medical gloves within Indonesia through our PT Medisafe Technologies subsidiary based in Medan, Indonesia. One million medical gloves have been donated to Pelang Merah Indonesia (PMI), a member organization of the International Federation of the Red Cross & Red Crescent Societies, who will ensure these gloves get distributed to PMI centers across the country. A further one million gloves are being sent to the Government of Indonesia, who has procured them on priority to assist healthcare specialists in Jakarta, the nation’s capital, and in other areas within Indonesia especially hard hit by COVID-19.”
..................
The demand from Indonesia will never end due to Covid 19......
We are focusing on rubber latex industry include latex glove, latex toys, latex foam, latex thread, catheter, condoms, finger cots, balloons, latex exercise bands & etc. We also provide OEM service, design formulation for our customer based on customer requirements.
..........
The chemical consumption will be directly proportional to the gloves demand
as we expect Luxchem Corp’s trading segment to benefit from higher demand from the glove-making sector – particularly in 1Q20 due to COVID-19. We also raise P/E to 14x from 13x, as we believe its significant overseas exposure is a plus, given the soft domestic economy.
For a company that makes 700 to 800 million is sales, 35 million PBT is really nothing to shout about. If the speculation is that they are supplying this and that to the glove makers well the financials will show. Otherwise, ..... They aren't the only supplier of chemicals used by the glove makers. The margins show it.
What's other listed company that is supplying resin of the use by Glove?
Is it fair to use such a high PE just because the Glove Company are now selling at high PE? Raw material / chemical of these aren't are competitive in price?
the last report for Luxchem was for qtr ending Dec 19
i am not expecting considerable margin expansion even on qtr ending Mar 20' just like what i foresee for the gloves stocks
market is seeing far ahead for gloves stocks
Luxchem produces a specialized chemical for nitrile gloves
Posted by Ravi Kumar > May 14, 2020 8:57 PM | Report Abuse
For a company that makes 700 to 800 million is sales, 35 million PBT is really nothing to shout about. If the speculation is that they are supplying this and that to the glove makers well the financials will show. Otherwise, ..... They aren't the only supplier of chemicals used by the glove makers. The margins show it.
Posted by tailiew > May 14, 2020 9:07 PM | Report Abuse
@probability
What's other listed company that is supplying resin of the use by Glove?
Is it fair to use such a high PE just because the Glove Company are now selling at high PE? Raw material / chemical of these aren't are competitive in price?
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Posted by anthonywml82 > 2020-05-13 19:53 | Report Abuse
Health Director-General Datuk Dr Noor Hisham Abdullah warns that Malaysia could be looking at a second wave of Covid-19 infections in mid-June.
At the daily Covid-19 briefing today, he explained that the Health Ministry’s National Institute of Health (NIH) can predict the outcomes of Covid-19 cases for the next two to four weeks based on the adherence to social distancing today.