thanks Goku. they are wonderful companies with tonnes of solid cash on hand. the recovery themed stocks have long way to go to even reach debt-free state.
suspicious for pfizer CEO to sold most of his share at the same day company annouce vaccine news... sohai CEO to sell when got such good great super geng vaccine come out, he should can double/triple his share values if he keeps the share... so, suspicious lo... maybe he buy back when low...
US cases r escalating and may reach 200k/day, or 1M in 5 days. It would be a brutal winter and bitter Christmas. Probably a nationwide lockdown would be a blessing. At present rate, everyone in US will know or some infected with Covid by the end of winter season (which could exceed 10% of population), be it himself/herself, immediate family, relative, friend, etc.
ASPs to drop even as glove demand stays up post-pandemic — AmInvestment Bank KUALA LUMPUR (Nov 12): AmInvestment Bank believes that while glove demand will stay stable post-Covid-19 pandemic, average selling prices (ASPs) will drop as there will no longer be a rush for gloves. We reckon that ASP will stabilise at a higher level than pre-pandemic level due to the broader usage of gloves,” it said in a note on Top Glove Corp Bhd today.
The research house’s analyst Thong Pak Leng said it believed that glove demand will remain strong, based on reasons outlined by Top Glove during a webinar, which include a higher awareness of personal hygiene and broader use of gloves beyond the healthcare sector. In addition, Thong said there may not be an oversupply of gloves after the pandemic, as Top Glove had pointed out that there are key issues in ramping up supply that need to be addressed, including the availability of contractors to build production lines, the shortage of foreign workers and constraint of nitrile raw material.
Top Glove has also allocated 30% of its capacity for spot orders. “The spot orders for nitrile glove have been fully sold for the next three months. Meanwhile, the spot orders for natural rubber powder-free gloves are also increasing due to the long lead time of nitrile gloves,” said Thong. Presently, Top Glove has a total production capacity of 90 billion pieces per annum.
To expand further, Top Glove has allocated capital expenditure of RM10 billion over the next five years for capacity expansion to double its current capacity by the end of 2025, said Thong. This will be done in stages whereby 14 billion pieces will be added for FY21 and 16 billion for FY22.
AmInvestment Bank maintains its "hold" call on the stock with a lower fair value of RM7.88, adding that the group’s fundamentals remain solid for the next few years. “We maintain our view that Top Glove’s net profit will peak in FY21 as demand soars from the Covid-19 pandemic with increased capacity expansions. We make no changes to our FY21–FY23 net profit forecasts at RM6.5 billion, RM2.3 billion and RM2.2 billion respectively. “Our ASP assumptions are US$60 per 1,000 pieces for FY21, US$35 per 1,000 pieces for FY22 and US$28 per 1,000 pieces for FY23 with an average utilisation rate of more than 80%,” said Thong. Top Glove is currently fourth on Bursa’s top losers list, having fallen 19 sen or 2.42% to RM7.67. The stock is currently valued at RM62.34 billion.
We maintain our HOLD recommendation for Top Glove with a lower fair value of RM7.88 (previously RM8.40). Our valuation is based on the rolled-over CY22 EPS over its 5- year average PER of 28x. We make no changes to our FY21– FY23 net profit forecasts.
**** Interesting to know that FLU VACCINE normally lasted about 4 MONTHS. **** Pfizer vaccine (even if able to achieve 90% efficacy) is not a global solution. Even Oxford, Moderna vaccine are proved to be effective will not solve the Covid pandemic for now, only lessen (hopefully).
Covid seemed to have been around for a long time but in fact only about a year or less. There are still many things that scientist do not understand. Whatever that we could out with in such a short time is already a miracle with the hope to bring the Covid under control to acceptable level but will not end it. Heighten hygiene SOP will be place for a long long time just like heighten airport security after the 9/11 incident.
Pfizer share down 2 days already. CEO Pfizer sold at almost highest price lorr after announcement. Now he can buy back lorr. Wonder why he sell if vaccine is certain found ?
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....
abc123_2020
390 posts
Posted by abc123_2020 > 2020-11-11 12:11 | Report Abuse
AT will annouce Glove Production any time from now..go go go AT..TP 6 month RM2.00 enough.