Government all around the world are stocking up gloves as demand continues to rise. Variants are emerging. See Singapore. After 2 dose vaccinations in Feb, nurse infected with Indian Variant. Now Singapore new cases increasing.
Now new cases are affecting the younger age. Many admitted in ICU. See Malaysian DG report. Same all over the world. So now the world realises that PPE including glove is required as new norm as Covid 19 is here to stay.
New variants, new booster jabs, more gloves demand.
With very strict movement control, recovery stocks tomorrow will drop. The only counters profitable and will remain so for many many years is healthcare.
ASP prices for this year and next (a few quarters) have all been locked in and firm. The drop in ASP is only for new orders mid next year. So PAT will continue to rise if no plant shutdown and lack of shipping containers.
All new comers into glove manufacturing will drop out due unable to compete with the Big 4 + 3 due economics of scale. Supply will drop and ASP will recover.
That is why the Big 4 + 3 have well positioned themselves with additional plant expansion as the foresee ASP stabilizing gradually. So to counter this will be the volume.
previous MCO time frame was 2 weeks but this time is 3 weeks , you can imagine how serious is the covid -19 in Malaysia, Tomorrow sentiment will be good for health care stocks.
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....
FortuneBlooming
4,139 posts
Posted by FortuneBlooming > 2021-05-06 14:12 | Report Abuse
What la you all