US already stopped mass testing. That is why the numbers are lower but this is in noway true scenario. Now they have switched the strategy to mass vaccination. This is good for gloves because surge in glove demand in the US - new pair for each dose of vaccination - New Norm for jabs.
Example is Malaysia - only when we started mass testing in Selangor is when you can see the true situation.
So the true situation of new cases are only true when all does mass testing.
Supermax's drop from KLCI index is NOT because of its current HUGE and future earnings, PAT. NOT because of its SUPERB current and future performances. NOT because of its current and future expansions. NOT because of its HUGE cash and treasury reserves. NOT because of the HUGE demand for gloves and masks which are all FDA approved. NOT because supply cannot meet demand for FDA / Authority approved medical grade gloves. NOT because of its strong fundamentals.
Its all because of Share Price Manipulation, RSS, fear mongering, etc, etc to create Panic Selling. If you have holding power for medium term, best to hold. Let the IBs and RSS continue with fake Q for selling and buying. Eventually all will get caught and the share price will start to rise.
The above may cause selling pressure in K+. Many are waiting to collect cheap.
Covid 19 death and hospitalization drop is good news for gloves. It's because of gloves that live can be saved and less hospitalization meaning more and more vaccination. Each dose requires a new pair of gloves. That is why the export for gloves since Jan until now, May, June have been steadily increasing. Demand continues to surge. Supply still lagging.
Petaling Street None approved gloves advertised online only fit for garbage collection and gardening. Not for medical grade gloves. All medical centers and governments buy directly from approved distributors and manufacturers. Not Lazada and Shoppee. So ASP has only dropped slightly but this has been balanced up by volume of sales. So revenue and PAT still remains robust.
Biden has began his banning of china products. He is more aggressive than Trump. Which means China gloves will soon be off the US market. In fact believe US may have already stop purchasing gloves from China.
This is a huge advantage now for Malaysian Gloves to supply the annual 25B glove demand just for the medical sector.
KUALA LUMPUR (June 9): Top Glove Corp Bhd expects average selling prices (ASPs) of gloves to drop further in the coming month due to weaker demand from the US and lower raw material costs.
Its executive director Lim Cheong Guan noted that the ASP of nitrile gloves fell 20% in Top Glove's third financial quarter ended May 31, 2021 (3QFY21).
"The ASP adjustment was in line with market pricing trends and lesser sales volume to the US," he told a virtual press conference held in conjunction with the announcement of the group's latest quarterly results.
Lim expects lower nitrile latex prices as costs of the raw materials, namely butadiene and acrylonitrile, are expected to decline by 10% and 6% respectively between May and August.
"A lower natural rubber latex concentrate price is expected in the coming months as the wintering season ended in May 2021, and yields are expected to improve," he added.
The world's largest glove manufacturer posted a softer quarter-on-quarter (q-o-q) performance for 3QFY21.
Its net profit fell 29.03% to RM2.03 billion from RM2.87 billion for 2QFY21, while revenue shrank 22.42% to RM4.16 billion from RM5.37 billion, as the group was barred from exporting to the US.
The group said the weaker q-o-q performance was owing to a decline in ASPs by 16%, a lower sales quantity following a temporary halt in shipments to the US from Malaysia and higher latex as well as natural rubber latex concentrate prices.
On a year-on-year (y-o-y) basis, the group’s quarterly net profit jumped almost five times to RM2.04 billion from RM347.9 million a year earlier on a higher revenue.
Revenue climbed to RM4.16 billion for 3QFY21 from RM1.69 billion previously.
Despite the weaker earnings performance, Top Glove declared a dividend of 18 sen a share, including a special dividend of 5.3 sen.
Top Glove gained six sen to close at RM4.84 today, with a market capitalisation of RM39.72 billion. It saw 34.54 million shares traded.
what happen to top glove in US ? suddenly going up almost 71%. A big jump in US market. Tomorrow this counter and other glove counter also on the radar for glove as Top Glove price going up like crazy in US market? Possible can drag the rest of glove counter up tomorrow. let hope for tomorrow.
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....
Posted by Kristina Melody > 2021-06-02 20:20 | Report Abuse
glove counter is dead? more like half dead now..maybe come back alive later.