Posted by jolynce > 2021-10-29 22:26 | Report Abuse

@bang_miskin it only matters if you bought before and you can't sell just yet. and that's where I am LOL! Based on my current average cost, with 39 sen dividend, I will be getting 6% yield just for this quarter alone. Can't complain about that I suppose. Btw how do you think the market will react on Monday to this prosperity tax. I don't have a good feeling about Bursa on Monday.

Posted by bang_miskin > 2021-10-29 22:38 | Report Abuse

@jolynce prosperity tax won't be good for any large, profitable companies. I have never heard of any market that likes higher tax, so I agree with your prediction that it won't be good.

Some people think this is a fair approach. Yes it is fair to all industries, but unfair to large, profitable companies. If you hold shares of large companies (like me LOL!) you will get hit by "prosperity tax"

Bang miskin is partial towards consumption tax like GST (but jib kor name oredi busuk, so can forget about it).

Posted by jolynce > 2021-10-29 22:42 | Report Abuse

@bang_miskin I need to strategise.. might want to quickly sell some stocks first thing on Monday and buy back lower, esp the large companies, like you mentioned. Except Airport, that one losing money, cannot pay tax, what more prosperity tax. Sigh.. Malaysian stock market..

Posted by Fong Kh > 2021-10-29 22:46 | Report Abuse

Hehe sell those profitable companies

Posted by Colgate > 2021-10-29 22:53 | Report Abuse

Tax companies better than tax people. Companies afford to pay prosperity tax. People very hard to find money to pay more taxes. Government very wiser now.

Posted by bang_miskin > 2021-10-29 23:00 | Report Abuse

@jolynce Good luck with your strategy. I am hopeless with detection daily fluctuation, so I cannot offer any advice. I mostly buy and hold for long term. Will expect my Maybank (biggest company in Bursa) to take a morning hit. Can't say about gloves, even I cannot predict what will happen in the coming weeks.

Posted by bang_miskin > 2021-10-29 23:12 | Report Abuse

@Colgate agree some, disagree some. Yes companies, especially profitable one can afford to pay higher tax, but that translate to lower return for shareholders. Normal folks like us will get hit with lower share prices. Not all of us are millionaires, you meet normal aunties and uncles in pasar malam? Many of them buy a few lots here and there. Play it right and bursa offers a higher return than your usual FD.

In addition profitable companies will find ways to avoid paying higher tax. I don't know much about Malaysian tax laws, but surely they are looking out for loopholes and ways to qualify for deductions and lower their tax burden. More ambitious companies will be seeking a way out from Malaysia (to countries with lower corporate tax), or at the very least create shell companies in tax haven countries to evade taxes.

Why not be fair to all companies? A flat tax percent rate to all companies.

Posted by jolynce > 2021-10-29 23:13 | Report Abuse

@bang_miskin thanks. If the stocks open gap down, then I will just sit quietly and wait it out. Hahaha. Have a restful weekend. We live to fight another day ;)

Posted by Ryan83 > 2021-10-30 00:25 | Report Abuse

Highest corporate tax rate in Malaysia 33% compares to Singapore (17%), Thailand (20%), Vietnam (20%) and Indonesia (22%)

Posted by Thirai Thiraviam > 2021-10-30 07:15 | Report Abuse

@Bang Miskin - I never invest more than 10% in a single stock. Typically, they are around 5%. As to Genting, I felt it has reached its pre-pandemic price. While it is certainly possible for Genting -- just like Air Asia (which I sold out after it crossed RM1.20) -- to turn around and become super profitable again, I am unnerved by their debt levels. As to Harta, I ask this question: would I buy more if its prices falls, say, 20%? Most likely I would, provided its fundamentals remain intact.

Posted by Thirai Thiraviam > 2021-10-30 07:40 | Report Abuse

I am uncomfortable about the one-off prosperity tax. As it is, there are lots of Malaysian companies that have Beneish M-Score that is too high, suggesting manipulation.

Posted by menotassassin > 2021-10-30 08:10 | Report Abuse

Let's do some math.
Assuming Harta can earn 700m full quarter next year after ASP normalized.

Normal tax:
PBT: 700m
Tax: 168m
PAT: 532m

Makmur tax:
PBT: 700m
Tax: 222m
PAT: 478m

In total: 54m difference.

Remember that this year, Hartalega gave 90m to goverment as donation. So this 54m is consider better.

And most important it is only for 1 year, so no worries about companies running overseas.

Posted by pamaladu > 2021-10-30 08:47 | Report Abuse

tax assessment year 2022 means income derived in 2021. So, Harta's estimated PBT for year 2021 is how much?

Posted by menotassassin > 2021-10-30 09:19 | Report Abuse

Really? When I submit my income tax for tax assessment 2022, it will be for my business profit in 2022. Listed company is different?

Posted by pamaladu > 2021-10-30 09:29 | Report Abuse

yes, I m wrong on this. But for year 2022, how much expected PBT for Harta? I think much more than 700mil.

Posted by menotassassin > 2021-10-30 09:45 | Report Abuse

Before Covid, Harta earned 400+m continuously for 3 year. I estimate 700m as maximum, if more then will be bonus.

Posted by pjseow > 2021-10-30 09:59 | Report Abuse

Harta made 2.88 billions in FY 2021 . Harta FY 2022 Q1 already made 2.26 billions. Total projected FY 2022 PAT is expected.between 3.5 to 4 billions。

Posted by Anxious > 2021-10-30 10:08 | Report Abuse

Well, the difference in tax rate is 9% (33%-24%). At most, would be a knee jerk reaction on Monday causing blue chips to drop b/w say 2% to 5%.

In Harta's case maybe retest recent low of RM5.44.

My guess is that it drops to RM5.50 and bounces back up in anticipation of bumper dividend.

RM6.00 by Deepavali?

Posted by Anxious > 2021-10-30 10:09 | Report Abuse

So I'd probably pick up some below RM5.50.

Posted by pamaladu > 2021-10-30 10:13 | Report Abuse

capacity will be increased by at least 50% next year to around 50bil+ compare 2019 35bil+, much lesser financing costs and improved automation in 2022

Posted by awankign007 > 2021-10-30 10:13 | Report Abuse

Below 5 soon, Tax coming + ASP lower + China glove counter start losing money

Posted by pamaladu > 2021-10-30 10:17 | Report Abuse

@awangkign007, I hope you are right on the below 5

Posted by pamaladu > 2021-10-30 10:20 | Report Abuse

https://www.petronas.com/pcg/media/media-release/pcg-lg-chem-collaborate-build-nbl-plant-pengerang

I waiting for this to happen in 2023. Costs will be cheaper.

Posted by bang_miskin > 2021-10-30 15:06 | Report Abuse

Cukai makmur is only a one time tax, not a permanent increase in tax rate? Hopefully the gomen doesn't come with another cukai makmur versi II in the following year's budget

Posted by menotassassin > 2021-10-30 15:36 | Report Abuse

Next year maybe Cukai Maju.

Posted by Anxious > 2021-10-30 16:09 | Report Abuse

Monday will be an interesting day. Not only for Harta but also for other blue chips. Will be on the sidelines watching.

Posted by Hummingbird66 > 2021-10-30 16:40 | Report Abuse

Hi! I’m a newbie and have been reading comments shared on this platform. Tq for sharing your thoughts and infos. I read this link shared below; to have an understanding of gloves’ market and demand & will like to share with some whom may find it useful. https://www.grandviewresearch.com/industry-analysis/nitrile-gloves-market

Posted by apple168 > 2021-10-30 16:47 |

Post removed.Why?

Posted by Ryan83 > 2021-10-30 18:29 | Report Abuse

Next week Bursa will face inevitable selling down by local and foreign funds due to unexpected Makmur Tax 33% to companies making profits > RM100 millions

Posted by Ryan83 > 2021-10-30 19:20 | Report Abuse

Highest corporate tax rate in Malaysia (33%) compares to Hong Kong (16.5%), Singapore (17%), Brunei (18.5%), Thailand (20%), Vietnam (20%), Cambodia (20%), Taiwan (20%), Indonesia (22%), Philippines (25%), China (25%), South Korea (25%)

Posted by Mini2021 > 2021-10-30 20:33 | Report Abuse

Last time they only attach Gloves company , now I'm happy that Insurance and bank industry all kena...happy happy

Posted by Keyman188 > 2021-10-31 14:27 | Report Abuse

Let us review the latest corporate tax rate in the region (follow by highest to lowest)...

Malaysia = 33% (2022 assessment)

Australia = 30%

Philipines = 30%

Japan = 29.74%

South Korea = 27.50%

China = 25%

Indonesia = 25%

Myanmar = 25%

Taiwan = 20%

Thailand = 20%

Vietnam = 20%

Brunei = 18.50%

Singapore = 17%

Hong Kong =16.50%

Macau = 12%


^^Don't forget...RM 100 mil profit PLC considered very minimal & acceptable for investment targeting...

Posted by bang_miskin > 2021-11-01 09:41 | Report Abuse

Quick question, are we expecting a QR announcement this afternoon?

Posted by menotassassin > 2021-11-01 10:18 | Report Abuse

Definately latest by this Wednesday.

Posted by bang_miskin > 2021-11-01 12:20 | Report Abuse

Okay thanks @menotassassin, currently Harta isn't looking too good maybe because of the prosperity tax. Waiting for next QR to bring some certainty, and hopefully a rebound to RM6 (unlikely given current sentiment)

Posted by casanwk > 2021-11-01 12:24 | Report Abuse

Fifth wave correction in progress
Next support 550
Daily chart

Posted by jolynce > 2021-11-01 13:23 | Report Abuse

Sold some at opening at 5.75. Bought last week @5.67 and 5.73. After that the price went up to 5.81. So in hindsight, I could've earned more if I did not panic sell. LOL! Oh well. Now we wait for the QR!

Posted by sheldon > 2021-11-01 14:44 | Report Abuse

We're screwed as the prosperity tax is applicable to Yr of Assess 2022. So the bumper profit quarters from Jun 21 to Mar 22 will be hit with extra 9% prosperity tax.

Posted by pamaladu > 2021-11-01 16:07 | Report Abuse

should be for period Jan - Dec 2022

Posted by Cerubic > 2021-11-01 19:01 | Report Abuse

Hartalega always walk the talk...year 2020/2021 Touching Lives ....year 2021/2022 Grounded in Values ... value shares 6ft down underground?????..

Posted by jolynce > 2021-11-01 20:30 | Report Abuse

https://www.freemalaysiatoday.com/category/nation/2021/11/01/company-to-invest-rm3bil-in-worlds-biggest-glove-plant-in-kedah/
Hong Seng to build biggest glove plant in Kedah. Check out how green the stock is today. Why? The existing glove players are established with proven track record, they should be greener than HS! Market makes no sense!

Posted by risekita8 > 2021-11-01 21:02 | Report Abuse

Very soon

Posted by menotassassin > Nov 1, 2021 10:18 AM | Report Abuse

Definately latest by this Wednesday

Posted by Cerubic > 2021-11-01 21:47 | Report Abuse

Hong Seng is a newcomer in the gloves industry. They are building a nitrile butadiene plant, raw material for the production of nitrile gloves and just started a glove factory with just 6 production lines, Hong Seng Gloves Sdn Bhd. With the current market situation and ongoing obstacles in the gloves industries : tax, neverending story on the labour issue popping up every now and then and yet to account the pandemic/endemic situation, the importance of esg csr that need to be adhered 24/7....doubt there will be rainbow up the sky in the whole industry in days to come, instead thunder and lightning are surely heading towards them, the oldies and newbies players. Will just wait and see how much grounded in values is Hartalega, weather through the thunderstorm.

Posted by jolynce > 2021-11-01 21:56 | Report Abuse

In spite of the stormy weather, new players like Hong Seng are foraying into the glove sector, investing billions into new manufacturing plants. Why? Is there something we're not aware of? Maybe the storm clouds are hiding the rainbow?

Posted by Cerubic > Nov 1, 2021 9:47 PM | Report Abuse

Hong Seng is a newcomer in the gloves industry. They are building a nitrile butadiene plant, raw material for the production of nitrile gloves and just started a glove factory with just 6 production lines, Hong Seng Gloves Sdn Bhd. With the current market situation and ongoing obstacles in the gloves industries : tax, neverending story on the labour issue popping up every now and then and yet to account the pandemic/endemic situation, the importance of esg csr that need to be adhered 24/7....doubt there will be rainbow up the sky in the whole industry in days to come, instead thunder and lightning are surely heading towards them, the oldies and newbies players. Will just wait and see how much grounded in values is Hartalega, weather through the thunderstorm.

Posted by bang_miskin > 2021-11-01 22:26 | Report Abuse

Glove producer like Hong Seng entering the market just shows that there's profit still to be made in the glove sector. Don't forget the other bigger picture: China, and Thailand are expected to expand and eat into Malaysia's market share. Yes glove sentiment still under immense selling pressure, and I hope Harta's next QR will reverse the current sentiment.

For those still believing in Harta, use this opportunity to accumulate. I wasn't able to do so since it makes no sense to sell my recovery stocks at current price. All kena hantam cukup2 by "cukai makmur" (nama bagus tapi polisi teruk!)

Posted by bang_miskin > 2021-11-01 22:30 | Report Abuse

On second thought, buying Maybank at current price (RM7.99) is a better short term decision. Maybank is expected to recover soon, while buying Harta right now is a bit of a gamble, especially when weighted down by poor sentiment.

Posted by Cerubic > 2021-11-01 22:54 | Report Abuse

It is not easy to start a new gloves factory. They have a strict product QA that need to pass through the relevant authority like the US FDA and if there are any irregularities which includes company involved with labor issues (the hot topic among all the industries now), shipment will be detained at the port...and there goes the stock value turning red like the recent issues with Supermax. All these newbies are venturing into the "Musang king" era, with lots of new tomdicknharry...but the fight now is on the "Blackthorn" era, the fittest is the survival automation innovation...and even the fittest now are facing problem left right top bottom, asp down lower margin over supply tax internal/external labour issues endemic/pandemic and yet to account the political situation in the country which more or less affecting the share market... rainbow is surely far beyond reach in days to come

Posted by pamaladu > 2021-11-02 08:08 | Report Abuse

can Hong Seng's nitrile butadine compete with PChem? even LCTitan has difficulties.

Posted by Ryan83 > 2021-11-02 08:15 | Report Abuse

KUALA LUMPUR (Nov 1): A cumulative RM33.8 billion of value was wiped off the market capitalization of stocks on Bursa Malaysia on Monday in a knee-jerk reaction to the government’s one-off 'cukai makmur' (prosperity tax) proposal.

The major selloff saw the total value of the stocks come down to RM1.77 trillion from RM1.81 trillion last Friday.

The FBM KLCI, meanwhile, closed down 31.39 points or 2.01% to 1,530.92, its biggest one-day decline since March 31 when the US bond yield and dollar surged.

Posted by Anxious > 2021-11-02 09:30 | Report Abuse

Looks like not much impact on SP from prosperity tax.

Already beaten down I guess.

Now need to wait for Quarterly results. Bumper dividends may just push it above RM6.00.

Harta much more volatile than Maybank.

Maybank at RM7.99 was still not attractive enough for me. Anyway above RM8.00 already today.

I expected it to go down to RM7.80 on the potential 5%-6% drop in 2022 profits after tax but it didn't.

I guess too much liquidity in the market.

Sadly, not enough interest in glove stocks for now.

Best case scenario for Harta in Nov is probably RM6.50.

I'd be happy if it just gets to and stays above RM6.00.