Posted by Frank Tan > 2020-07-07 12:17 | Report Abuse

lowest PE kossan stand strong....hope gila again...one man show

Posted by mf > 2020-07-07 13:13 | Report Abuse

https://www.theedgemarkets.com/article/malaysias-gdp-grow-63-75-next-year-says-tengku-zafrul

Posted by infinity888 > 2020-07-07 16:23 | Report Abuse

CIMB revised margin valuation :

TOP gloves $15
Supermax $7.00
Harta $11.00
Kossan $ 7.50
Comfort $3.00
Ruberex $2.50

Posted by calvintaneng > 2020-07-07 16:27 | Report Abuse

Cimb rated kossan higher creditworthiness than Supermax?

More than 70% of Kossan Top 30 holders are Institutions

Kossan is Rock Solid

Will continue to go over Rm11.00 and stay above that

Kossan go go go!

Posted by bullstudent > 2020-07-07 16:29 | Report Abuse

Huat ah, reload on the retrace just now

Posted by gloveharicut > 2020-07-07 16:48 | Report Abuse

Cimb revised capping for gloves https://klse.i3investor.com/blogs/gloveharicut/2020-07-07-story-h1509797953-Cimb_revised_capping_for_gloves.jsp

Posted by genghis > 2020-07-07 17:11 | Report Abuse

kossan retain bronze position again today

Posted by bullstudent > 2020-07-07 17:36 | Report Abuse

Will become gold Kossan soon.

Posted by investor_lauzy > 2020-07-07 19:50 | Report Abuse

What does revised margin valuation means?

Posted by kent20020185 > 2020-07-07 19:56 | Report Abuse

What is the estimated net profits for kossan in coming quater ?

Posted by Apple1234 > 2020-07-07 20:35 | Report Abuse

Kossan throw their share again.

Posted by jiunn > 2020-07-07 20:38 | Report Abuse

^^^GLOVE RALLY: STRONG HANDS UNLOADING AT HISTORIC HIGH??!

With gloves, today bursa healthcare indices made its historic high at 2,801 from low of 2,158 on 19/6/2020 after almost 30% hikes among the sectors. It has also hit the first target of important fibonacci extension target 2,790 (161,8%) in impulsive trend before pulling back closed today with a bullish hammer stick. For that reason maybe some strong hands unloading just ahead of getting into the historic highs resistance area.

Would this bull rally continue higher?

My Bets: We have divergence on hourlies. No rush is needed without a breakout of today strong resistance high because bears can easily claim this is a topping formation. Otherwise, we are looking for one more move to the upside, probably higher 3,205 (261,8%) area.

Huat Huat ARRRR!!! Happy Trading and Stay well!!

Posted by Apple1234 > 2020-07-07 20:46 | Report Abuse

Let we see at August Kossan earn more money or supermax earn more money. Answer will get at August.

Posted by superman13 > 2020-07-07 20:48 | Report Abuse

Apple you can f*&^ from this group

Posted by kent20020185 > 2020-07-07 20:48 | Report Abuse

Any news about the estimated net profits for coming quater of kossan ?

Posted by Frank Tan > 2020-07-07 22:00 | Report Abuse

Apple you can f*&^ from this group+1
你妈烂苹果，上一点你鸡鸡歪歪，这两天上最多，你tmd也鸡鸡歪歪，干你妈 滚啦

Posted by infinity888 > 2020-07-07 22:16 | Report Abuse

Stephanie Cheah
stephanie.cheah@clsa.com +60 3 2056 7873
7 July 2020
Malaysia
Healthcare
Top Glove
TOPG MK
BUY
HART MK
Rec
Market cap 3M ADV Price
Target Up/downside
US$11.6bn US$55.7m RM19.96 RM22.00‡RM28.00 +40.3%
Hartalega
Rec
Market cap
3M ADV
Price
Target
Up/downside +21.2%
Kossan Rubber KRI MK
BUY
US$12.7bn US$26.0m RM16.50 RM16.30‡RM20.00
Rec
Market cap
3M ADV
Price
Target
Up/downside +25.2%
Outperform‡BUY US$2.8bn US$10.3m RM10.38 RM9.80‡RM13.00
www.clsa.com
Malaysia gloves
Sector outlook
Thanks for your support in the
Please click here for our voting matrix.
Rational exuberance
Backing out the implied long-term growth using GGM
Record profits for 2020 are now a given, but it is not known whether this is sustainable or for how long. Our analysis after triangulating various industry data points suggests glove demand will stay strong through 2021 and potentially even until 2022 on restocking activities. We see ample upside for glove manufacturers despite the run-up, with our target prices derived using modest target P/E implying long-term growth of 5% (based on GGM), against normalised industry growth of 8-10% p.a. Maintain sector Overweight with Top Glove our top pick and Kossan Rubber upgraded from Outperform to BUY.
Global supply shortage forecasted throughout the next three years
q Concerns about competition from Chinese players have led us to map out global demand and supply dynamics via the triangulation of industry data from various sources.
q We project glove demand to grow at 25%/15%/10% in 2020/21/22, versus the historical run-rate of 8-9% p.a.
q Against the forecasted global supply by various players, which would yet see some downside from delays/cancellation (especially from overly aggressive Chinese players), we foresee a glove supply shortage continuing throughout the next three years.
Higher base ASPs sustainable so long as spot demand persists
q Recent share price rerating is driven predominantly by expectations of sector earnings surge, with the market extending expectations for earnings to now peak by 1H2021.
q In our view, base ASPs will remain at current elevated levels so long as spot orders are
sustained. We believe spot demand will only start contracting when demand supply
imbalances normalise, a scenario we believe will not materialise until post-2022.
q Even then, the industry would have gone through a significant drawdown in inventory, which necessitates end users and distributors to rebuild buffer inventories for another year. We expect this coupled with significantly higher cost of operations in the new norm
to sustain a c.20% higher run-rate ASPs vis-à-vis pre-Covid-19 levels.
CLSA street high earnings estimates across the three glove makers
q The fact that the Malaysian glove makers will report bumper profit in CY20 should no longer come as a surprise to the market, but the question is: for how long?
q Top Glove – We believe Top Glove could report c.RM1.2bn net profit in 4QFY20 (4x higher QoQ) underpinning our FY20 (Aug) earnings raise by 37%. Such strong profits is expected to extend to FY21/22 where its higher spot mix is supportive of our 187% YoY earnings growth in FY21 to RM5.2bn. Current share price implies valuations of 10x FY21 and an undemanding 34x (below +1.5s.d) based on normalised FY22 earnings.
q Hartalega – Relatively late to the game of price hikes, the significant demand has put upward pressure on ASPs. We raise our FY21 (Mar)/22/23 net profit by 10%/50%/31%. It is now apparent that Hartalega will see similar upsurge in ASPs, albeit with a slight lag.
q Kossan – Visibility on ASP is limited, but we are also raising our FY20/21 net profit by 53%/109% as our previous assumptions were overtly conservative relative to peers.
Historical P/E trend irrelevant against sector peak earnings
q The sector peak earnings, whilst a positive, poses a significant challenge for PE-based valuation, as the historical P/E trend is no longer meaningful.
q Intuitively, the target P/E multiple should reflect the fact that the 2021/22 earnings is elevated and could potentially normalise after. This begs the question as to whether it is fair to use historical P/E trend to value the stock on earnings that is not sustainable.
q In valuing the stocks, we have therefore applied a significantly lower target P/E depending on how elevated the forecasted earnings is to the cycle-adjusted earnings.
q Our target P/E for Top Glove/Hartalega/Kossan at 15x/35x/19x implies LT growth of c.5% p.a., which we believe is reasonable versus industry trend of 8-10% p.a., and the fact that these players are dominant in its field.
q We lift our TPs across the board: from RM22.00 to RM28.00 for Top Glove; from RM16.30 to RM20.00 for Hartalega; and from RM9.80 to RM13.00 for Kossan. While we reiterate our BUY ratings for Top Glove and Hartalega, we upgrade Kossan Rubber from Outperform to BUY on our earnings upgrade and significant discount in valuations.
CLSA

Posted by gloveharicut > 2020-07-07 22:31 | Report Abuse

CLSA: GLOVE supply shortage forecasted throughout the next 3 years. TOPGLOV (RM28) HARTA (RM20) KOSSAN (RM13)

https://klse.i3investor.com/blogs/gloveharicut/2020-07-07-story-h1509799133-CLSA_GLOVE_supply_shortage_forecasted_throughout_the_next_3_years_TOPGL.jsp

Posted by Apple1234 > 2020-07-07 22:43 | Report Abuse

Frank Tan: You know why market dont like Kossan? Because the expansion and business model too conservative. Please see back the May result compare Kossan and Supermax, you will see Kossan net profit lower than Supermax and yoy only increase 10%, than you should go find why Supermax result will better than Kossan? Is it the obm and selling price? As a smart investor you should learn how to maximize your profit. For example, Supermax from 1.28 to 10.68, how much profit gap you will earn? Kossan from 4 to 10.92 how much profit gap you earn? Share price can go how far is purely depend of result improve how much? You already know the key point of result improve is selling price, than why you dont want be a smart investor switch your money to high selling price glove company? Kossan share price up is purely because of glove trend and it is temporarily. After August quarter result announced if net profit lowest than Supermax you will see the share price drop like hell, because no good enough result support. Why Kossan keep selling the price until now? Why Kossan cant like Topglove, Harta and Supermax director keep buying their share giving investors confidence? See back today Harta 4.50pm volume, 12mil share sapu by who? Is it anything will happen? Harta future bright or Kossan? See back Top 3 director compare to Kossan, Kossan director doing what let investor having confidence? Use your brain and think it, is it Kossan faudamental have better than Harta and Topglove? Go hear Bloomberg interview Kossan director video before you come to comment. Guys, become a smart investor, think about it Kossan share price up because what? Purely because glove trend right? Kossan have any strong story make share price up? No right? Than you should scare after result announced the share price will how? Dont always dream Kossan can go until RM15, RM100. Please, wake up, share price will go how far is 100% because of how good the result.

Posted by Mk Jr > 2020-07-07 22:46 | Report Abuse

hmm. kossan business model is too conservative. after many years, expansion speed is really not favouring. Too slow, too conservative.

Posted by PelaburMalaysia > 2020-07-07 22:50 | Report Abuse

Apple1234: Kossan no good news? Yesterday i might be dreaming that kossan is buying properties for expansion

Posted by Apple1234 > 2020-07-07 22:50 | Report Abuse

Why cimb revised topglove margin capping from RM 11 to RM15, Harta from RM9 to RM11, Supermax from RM5 to RM7. Kossan from RM7 to RM7.50? Guys have you think? Why Kossan margin capping only increase 0.50? Is it bank is stupid?

Posted by Apple1234 > 2020-07-07 22:55 | Report Abuse

PelaburMalaysia: Buy property for expansion, is it Harta, Topglove and Supermax no buy? Expansion need time, halo. See back how Kossan expansion delay record, build factory need take how long time? Think. During covid-19 you want waste your time at Kossan? Everyone earn money during covid-19 you at Kossan see other people earn big because other Big 3 glove company keep improve more than 300% but Kossan cant? Wake up bro.

Posted by ghost2016 > 2020-07-07 23:10 | Report Abuse

Apple1234 is one of the example of people who are jealous, most likely because missed out the boat .... haha ..... use common sense, why he is so free, drop by here and type so many long comments (there are so many other counters out there) .... it is quite obvious that, he is trying very hard to give negative comments to this counter .... thinking of can have a price drop, so that he can buy ..... haha

Posted by OngKawKaw > 2020-07-07 23:22 | Report Abuse

No lah. Fruity1234 is the spokesperson of Fantastic 4. Let him talk we set our own target. Let him song song LP song

Posted by Apple1234 > 2020-07-07 23:35 | Report Abuse

Ghost2016: Be a smart knowledge investor, use knowledge and logic comment to refute me. If you talking is logic and commen sense i will accept it. But your comment reply is without any logic and commen sense, we are all adult. Please, study deep the company and use the information to reply me that i comment is wrong, than i will accept it. Example if you have information that can show market Kossan selling price is higest than Supermax, than show us i will accept it. This is only a example. Refute me with logic information. No people will jealous you, we are adult, understand? What i comment is wrong, please use logic information prove me and correct me.

Posted by Apple1234 > 2020-07-07 23:39 | Report Abuse

Ghost2016: answer me, share price up is it need good result support? Is it need market expectations result support? Share price will go how far is it 100% = how good the results? No market expectations result support is it share price will drop like hell one days? Answer me with logic comment. No people will jealous you. **** Answe with logic adult comment.

Posted by ghost2016 > 2020-07-07 23:43 | Report Abuse

@Apple1234 ... use common sense la, dont need ro be smart .... topglov is good, suoermx is good, then u go there to give good comments la .... u come here spend so much of your valuable to talk about how bad kossan is for what la? U r too free nothing to do? Or have other reason ... any oeopple do something with a reason ... what are the reason u stopped here and give so much comments? This srock is too atractive? U go topglov or suoermx give comments lah, why come here ..... hahah

Posted by jojo85 > 2020-07-07 23:47 | Report Abuse

Apple1234 sifu, the market already gave the answer..when supermx gains something, kossan gains more..that is the fact..just trade wat u see..

Posted by ghost2016 > 2020-07-07 23:48 | Report Abuse

@apple1234 ... yaya ... kossan is bot good, very koussy .... topglov and supermx is good ... u go there leave comments lah ... u come here soent so much time comment for what lah? Since this stock is not good. Why want to waste ur time on staying here for stock that not good? U better use the time to watch porn movie, isnt it better?

Posted by infinity888 > 2020-07-08 00:29 | Report Abuse

tmr 11?

Posted by blood7 > 2020-07-08 01:40 | Report Abuse

https://www.cnbc.com/2020/07/07/brazil-president-jair-bolsonaro-tests-positive-for-coronavirus.html

Posted by haihai > 2020-07-08 09:16 | Report Abuse

Yes, come on Kossan..up..up

Posted by Bursa_final_winner > 2020-07-08 09:36 | Report Abuse

My fund manager uncle is right, sell overpriced glove stocks, buy Bursa fast.

Posted by mf > 2020-07-08 09:51 |

Post removed.Why?

Posted by haihai > 2020-07-08 09:52 | Report Abuse

Yes!Yes.. Kossan leading the gloves now.. up..up

Posted by yongleecheng > 2020-07-08 09:56 | Report Abuse

RM11.20

Posted by bullstudent > 2020-07-08 09:57 | Report Abuse

RM 14 is not a dream

Posted by Inventor2020 > 2020-07-08 09:58 | Report Abuse

when kossan agm?

Posted by OngKawKaw > 2020-07-08 10:00 | Report Abuse

Samko turbo lai liao. Show supermax you’re not paper tiger. Go go go

Posted by yongleecheng > 2020-07-08 10:03 | Report Abuse

RM11.42

Posted by shinrei > 2020-07-08 10:19 | Report Abuse

up up and awayyy!!!

Posted by wendycwl > 2020-07-08 10:19 | Report Abuse

How much can sell

Posted by calvintaneng > 2020-07-08 10:22 | Report Abuse

Wahaha

Kossan really live up to its name

Guo shan = Go over mountain {in Chinese}

Gone over mountain of Rm10

Now going over the Rm11 mountain

Go go guo shan !!!

Posted by shinrei > 2020-07-08 10:27 | Report Abuse

go go go!!!

Posted by tuapuikia > 2020-07-08 10:39 | Report Abuse

bye bye

Posted by ttluck > 2020-07-08 10:58 | Report Abuse

kossan become taiko glove for now...

Posted by chshzhd > 2020-07-08 11:34 | Report Abuse

yes apple1234, i agree kossan is not so aggressive when expanding its business, but it will catch up steadily..

Posted by chshzhd > 2020-07-08 11:36 | Report Abuse

u can see kossan begins to lead others 3 since yesterday...

Posted by chshzhd > 2020-07-08 11:38 | Report Abuse

we will wait for the QR for aug n nov , time will tell..