The news just mentioned that the government will provide incentive for local mask producers. They will try to stop importing face mask from china .
And the news from TheStar just mentioned this few company without EG, it was not announced by the government
Because EG is a hidden gem, if you look other face mask producer, the share has went up skyrocket except EG. I suspect in a few more days, the momentum will back to EG.
PETALING JAYA: Plans are underway to encourage the wholesale production of face masks, an essential item which almost all of it is still being imported from China now. Sources told StarBiz this is because face masks are deemed a central tool to win the battle against Covid-19 pandemic and thus the item has to be considered in light of national security interests.
“There are plans for government subsidies or incentives to be given for the setting up of production facilities for face masks. And the plan is for the whole supply chain to be securely located within the country itself, ” a source said. “Even the raw materials such as elastic bands on the face masks should be sourced from local players. That is why the government is keen on creating incentives for the whole supply chain to be located within the country, ” the source added.
However, from a business standpoint, the manufacturing of face masks has a low entry barrier and carries the risk of a glut in the event the pandemic slows down. A report by AFP stated that in China, the tens of thousands of mask-making companies that mushroomed following the coronavirus pandemic are now struggling to survive. This has come about after some 73,000 companies registered as mask makers in the first half of the year – including over 36,000 new companies in April alone – as prices and demand soared, the report indicated. But the influx of new companies led to a “dilution in quality and a surge in scams”, according to China-based researchers at Daxue Consulting, as firms from carmakers to diaper producers converted their production lines to make masks. Now the outbreak is largely under control in mainland China, domestic mask demand has dropped dramatically, pushing prices down, AFP reported. The report also said that some of the companies that piled into the industry are now backing out. This has not stopped a number of locally listed companies from venturing into face mask production. Their announcements on these ventures has led to a surge in their share prices, amidst the red-hot stock market. These include SCGM Bhd, Notion VTEC Bhd, Xidelang Holdings Bhd, Ni Hsin Resources Bhd, Caely Holdings Bhd and Pecca Group Bhd. Some of these companies reckon that their high quality masks and personal protective equipment will differentiate their products from others and hence provide them with higher profit margins. Notably, another challenges facing the industry is the government’s decision to put a cap on the pricing of face masks. Following a recent government announcement, ceiling prices for face masks will be reduced to RM1.20 from RM1.50 per unit from Aug 15. Wholesale prices would also be reduced from RM1.45 per unit to RM1.15 from the same date.
face mask will gradually be over but I think not so soon the Convid peoples increasing daily and Vaccine is not out yet says on the way and still need to test on humans...? Those few Countries are rushing to be first to prove that they are more advance but end of the day we won"t know who's is number 1....? wait and see..
Vaccine will be widely available before US presidential election. Fauci said it might take longer before he doesn't want all the preventive measures to be ignored. If you say vaccine is coming soon, everyone will go out partying now.
Now we are talking about the effectiveness of vaccine and no longer the availability.
Even now all vaccines can be used. It's just that the effectiveness still needs to be measured by trials to make sure it is more than 75%.
If the effectiveness is only 50%, only one of the two people who took the vaccine can stimulate antibody.
We don't know where is bottom and where is highest. For those who can buy and sell highest and lowest within 30%, he better than warrant buffet. To me 0.53 is the price, But maybe it will drop back to 0.45, who know?
I am wondering why everyone thinking mask is lifting this counter. Look at other mask counter like OCNCASH remain intact. Do you still think EG lift because of Mask?
and if u guys hope that this is mask counter. up to you. the news many times already give clue mask counter, yet u never choose and still believe eg will up coz of mask. always do hope analysis.
EG fully own " SMT TECHNOLOGIES SDN BHD (MALAYSIA) " You may refer to their company profile to their company profile under group structure http://esmtt.com/about.html
Please dont spread false news if you arent ensure about it
By the way, EG management is not that good in PR unlike Notion. But they have started way earlier on their mask production , they even gotten their FDA mask approval on early May.
But i believe they have a plan behind all of this , the recent downfall of this share were only minor selling volume compare to 80 to 90 mil volume trade when it hit up.
However, even the government set the ceiling price for the mask, the government still provide incentive to local mask manufacturer which will benefit to the company right ? Any sifu can enlight me on today’s news ?
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
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....
jansnow
27 posts
Posted by jansnow > 2020-08-10 10:07 | Report Abuse
hopefully QR3 will gap up this counter. sighhh