KOSSAN (7153): Financials Summary, Key Results, Growth

I didn't analyze the finances and all ... just on the new operation in US, I don't really like it. US workers union will definitely make high labour cost. US has too many redtapes and regulations. OF course they will benefit on US tariff on China, but Msia gloves also benefit even if US has 10% tariff on Msia.

Dear Chipee
what do u think Supermax?

4 weeks ago

crackyoo

jump back in again

4 weeks ago

Noted and Thanks Chipee

4 weeks ago

ChandranG

Better pick Kossan, my friend

4 weeks ago

Noted and Thanks ChandranG

4 weeks ago

calvintaneng

Stanley being a shrewd businessman already calculated the risk/reward of building New Glove Factories in USA
Or else he won't be a successful billionaire that he is today

TRUMP IN POWER; SUPERMAX IN USA IS TOP BENEFICIARY AS TAX ON CHINA GLOVES 50% To 100% & OTHERS UP TO 20%, Calvin Tan

https://klse.i3investor.com/web/blog/detail/www.eaglevisioninvest.com/2024-11-12-story-h473828061-TRUMP_IN_POWER_SUPERMAX_IN_USA_IS_TOP_BENEFICIARY_AS_TAX_ON_CHINA_GLOVES

3 weeks ago

50% (2025) & 100% (2026) Tariff on China glove is CONFIRMED.
20% tariff on OTHER glove makers ... First time heard it from Calvin Tan. True or not, nobody knows.

Firstly, I think Trump is smart enough to know putting on 20% tariff on other glove manufacturers will increase price for Americans. Their target is China. Not hurting their own people. With 4 big glove makers in Msia and Sri Trang in Thailand, they will be competing price wise to lure American buyers. No need to disturb situation that's advantages to USA.

Second and most important factor, glove is a LOW margin product. Trump is targeting for HIGH margin products like EV cars, cars, smartphones etc. to be manufactured in USA. They want to bring these manufacturing back to USA. Other low margin products is focus on cheap labours overseas.

Trump's decision to lower corporate tax also to lure American companies to bring back their overseas profit back to US and pay US tax. Most US companies have offshore accounts/companies for lower taxes purposes.

If Supermax were to build their factory in Mexico, I would buy their shares. But building in US with higher labour cost and stringent government regulations, I would stay away.

3rdly, I think Calvin Tan owns Supermax shares and trying to boost the price up. 😂😂🤣😂😁

3 weeks ago

And another thing, Trump's plan for oil&gas in US will make natural gas cheaper in global market.
Good for Msian glove makers.

3 weeks ago

just my thoughts
now with Elon Mask in the picture in Trump cabinet
and Elon Mask is well known super Pro-China with his business presence in China
he even came out a msg to advice Taiwan to become one of a province in China
i wonder if this time around Trump will take a 360-degree turn towards China

Let's watch how thing will evolve
should be very interesting...

3 weeks ago

newbie5354_

EPF become buyer after Trump win?

3 weeks ago

What is the objective of tariff? So manufacturers will open a plant in USA and provide jobs. Tesla already have a plant in China so Elon is already golden in his position in China. Trump is expecting China EV to open plants in US if they want to sell in US. China being in economic downturn wouldn't touch Elon in China because of job security for Chinese people there. Many Korean and Japanese manufacturers had already left China and now many Chinese are jobless.

Elon will keep supporting Trump on China's tariff. Trump's tariff is a bargaining chip for one big issue ... BRICS. Democrats use war for this issue. They convince Zelensky for Ukraine to join NATO, knowing well that Putin will retaliate with war. That's why Nancy Pelosi visited Taiwan, to start a war with China. Trump doesn't want war so he uses tariff.

3 weeks ago

EngineeringProfit

So, it's either tariff or war

3 weeks ago

EverettLee

Mostly war on tariff

3 weeks ago

ket4212

kossan qr better than harta then have dividend

3 weeks ago

Kossan QR today or 20th Nov?

3 weeks ago

ket4212

I think next week

3 weeks ago

ket4212

thanks kossan

3 weeks ago

YEah.... Revenue increase and still profitable. Not like Harta in operating loss.

3 weeks ago

Something to share what I posted on Hartalega forum:

No. We are NOT investing for another pandemic. That could be another 100 years from now. We are investing in US-China rivalry and it is bearing fruit since USTR announce 50%(2025) and 100%(2026) tariff on China gloves.
Between Intco and Bluesail production is about 90bill annual capacity. With tariff, Msia and Thai glove has the upside on volume and ASP to sell in US market (largest market for gloves).

Even with 10% or 20% tariff on Msia & Thai, we are still cheaper than China. But I don't think that will happen. US target is really China thanks to Supermax. Supermax is on board in American Medical Manufacturers Association (AMMA). They are the one convince US to place tariff on China. Supermax production capacity in Texas is only 4.8 bill per annum, meaning the rest of US order will come from Supermax Msia. Supermax will not be silly to want tariff on Msia gloves.

And if Supermax to expand they production in US, that would eat a lot into their capital. They spent billions and are losing money these few years bcoz of building their plant in US. It would take years for this expansion to take place. So we have a good 4 years for Msia gloves. By then PE of 150 will drop to PE 25 when the profit has increased tremendously.

Please do your research before you shoot your mouth.
On Supermax.
https://theedgemalaysia.com/node/726994

mushimushi

Why PE 150++ still buy? This Tulip mania.

Moderna And Other Vaccine Maker Stocks Tumble After Trump Taps RFK Jr. As HHS Head
https://www.forbes.com/sites/antoniopequenoiv/2024/11/14/moderna-and-other-vaccine-maker-stocks-tumble-after-trump-taps-rfk-jr-as-hhs-head/

There will be no plandemic in the next 4 years.

3 weeks ago

Another share:

Harta management is the "best" is only by reputation. I give you that. But that is just a small part to the overall picture. Don't forget, glove is a LOW margin product and easy to make. China was a threat before the tariff. AFTER the tariff, Msia gloves are on an even playing field.

You talk about automation, Kossan has been doing that since 2017 and with strong cash position, they had been upgrading production since 2021. Now is almost 2025. They had spent 4 years to be fully automated. Kossan is no way behind Hartalega in this aspect.
https://theedgemalaysia.com/article/cover-story-slow-and-steady-route-digital-transformation

Kossan has one bad reputation problem; CEO sells shares when price is high. A bit annoying but hey, he is allowed to do that. This caused Kossan to be undervalued AT THE MOMENT. But things that matters like production, quality etc ... Kossan is as good as Harta. Remember, Kossan and Harta were the only 2 glove companies that were not banned by US Custom on labour issues.

Topglove ... well they are big. That's all.

So Dawchok, it not arrogance. It's facts. Get off your high horse on "best management". It's only goes on for a while. It will wear off fast. Btw, Kossan is the only glove company making profit this Q3. And been paying dividend.

dawchok

The management is the best in gloves industry albeit much arrogant comparing to those from KS and TG

3 weeks ago

Another share from Harta forum:

Aiyoh ... 50% of US order is secured without China kacau2.
The other 50% is price war and you think Msia cannot fight them? Glove is low margin, low tech product. China's cost base is no difference than Msia.
For comparison 2023 annual report: Cost of Revenue/Revenue
Harta = 86.77%
INTCO (China) = 86.30%
To me... this is not much difference.

Before COVID, China was not focus too much on gloves but after covid and their production increases, they want to muscle in by throwing price. Basically stealing Msia customers base. But remember this, OVERHEAD cost is a KILLER in this kind of VOLUME game products. That's why Topglove is still making losses. INTCO (China) is 79 bill annual capacity. Kossan and Harta stands at 35bill annually which is at the optimum production capacity to make money. INTCO will go into losses soon enough. AND without US market, China will lose even more.

Remember Evergrande? Why have they gone bankrupt? High debt. INTCO debt exploded from RMB280 mill to RMB7.17 bill. That is 25.6 times. When their production size cannot justify the sales they have, they will cut down production significantly and lose economy of scale. They have enough cash to cover their debt but they definitely cannot THROW PRICE to steal Msia customer base.

With US tariff, China is no longer a threat.

2 weeks ago

Next Resistance level 2.51/2.52. Your call to be greedy or swing trade(some) . Still a longer term hold.

2 weeks ago

KimSua ... Totally agree. Will hover around 2.5 until Q4 2024 result to decide. I expect better results.

2 weeks ago

ChandranG

Patiently invest in Kossan will win the race for sure

2 weeks ago

Chipee, this time the risk of losing out is high if swing sell too soon. Might be a re rating soon for glove sector, which we see much earlier. But most likely take profit as the market will test the next resistance for at least twice , however looking at the bullish trend, might just only swing some profit. Trump will most likely increase taxes across the board for all imports and we have to scan the news especially the American glove manufacturers association. Good luck

2 weeks ago

Thx for the heads up KimSua

2 weeks ago

WDCQ_I_am_legend

Trump has announced an additional 10% tariff on all Chinese products, raising the tariff on Chinese medical gloves to 60% from the current 50% under the Biden administration. This new tariff will take effect in January 2025.

#Bloomberg

1 week ago

Do you guy think price will drop after the ex-date for dividend?

1 week ago

EverettLee

Yes, the price will be adjusted and then will rise back

1 week ago

I suspect this session will not touch the psychological 2.5 +
resistance level. Better to take the dividend and wait for it to surpass the resistance again after Dec potential window dressing

1 week ago

Yeah. I'm going for the dividend and hold for Q4 results in Feb 2025.

1 week ago

Posted by Chipee > 21 hours ago | Report Abuse
Do you guy think price will drop after the ex-date for dividend?

i do think most of the counters will drop more than the dividend received after ex-dividend
a few are exceptions e.g. go for privatize like MMS last time instead of dropping it went higher and etc

1 week ago

NatsukoMishima

Malaysia glove stocks will tumble in 2025 ! Dont ask me why , you will know the answer in 2025 !

6 days ago

Nutsucker will end up in an asylum in 2025 ! Dont ask me why , you will know the answer in 2025 !

5 days ago

calvintaneng

US SOLAR PANEL TARIFF SETS A PRECENDENT: SUPERMAX MIGHT BE THE ONLY MALAYSIA GLOVE CO THAT MIGHT BE EXEMPTED FROM US TARIFF, Calvin Tan

https://klse.i3investor.com/web/blog/detail/www.eaglevisioninvest.com/2024-12-03-story-h475649343-US_SOLAR_PANEL_TARIFF_SETS_A_PRECENDENT_SUPERMAX_MIGHT_BE_THE_ONLY_MALAY

5 days ago

NO. Totally different issue. LONGi is China's solar manufacturer. They have a big production in Bukit Beruntung, Rawang. Of course Msia got hit by this tariff. They are targeting China manufacturers. Even the article stated this fact:

The group, the American Alliance for Solar Manufacturing Trade Committee, accused big Chinese solar panel makers with factories in Malaysia, Cambodia, Vietnam and Thailand of causing global prices to collapse by dumping products into the market.

4 days ago

This shld be interpreted as "USA targeting tariff on China glove manufacturer even if they operate from Indonesia, Vietnam or Msia. "

4 days ago

Highest high for since the first ustr announcement. Out for now

3 days ago

HaroldHuong

Up for 2days and see how 2moro..

3 days ago

I think can go higher. Because the situation is different now. Then, the 25% tariff will be in 2026. So there is another 1 year before the tariff. Anything can happen in 12 months. True enough, Maybank wrote an article abt China glove being so great and all. So traders sell big.

Now, it is 50% tariff in 2025 and US targeting China manufacturers wherever they manufacture from. Whole different situation bro.

KimSua

Highest high for since the first ustr announcement. Out for now

2 days ago

Yeah it can go down and up... but fundamental is still intact.

HaroldHuong

Up for 2days and see how 2moro..

2 days ago

Chipee, the fundamental is still intact. Each has its risk profile and we know klse liquidity is limited and even big funds work with their short agents to get the best prices on average. It will definitely go up after a breather. Always observe the net short position trend if intend to swing however risk of losing the boat is always there. For each its own. Hope everyone wins

2 days ago

Kim Sua, Do you monitor the short position every trading day? ("Always observe the net short position trend ...")
Volume Value
KOSSAN KOSSAN RUBBER INDUSTRIES BHD 284,700 745,578

This the data I got from Bursa for 5 Dec 2024. But no graph to see spike or trough.

2 days ago

I'm using the standard MACD, MA (20,50,150) and RSI to monitor for tech analysis. Hoping you can point out this net short position for me to add into my analysis. TQ

1 day ago

EverettLee

Kossan is sprinting and heading towards RM3 🏃 Gogo

1 day ago

5354_

Harta why RM 3.7 with lower dividend and EPS?

1 day ago

Chipee, have to go to bursa website to get the net short and total short for few trading sessions. However need to do some homework to plot the trend. Macd/rsi is technically lagging indicators. Short position allows you to know earlier if the big guns are slowing shorting it or recovering their shorts. Better to get a few confirmation to decide. Good luck. Resistance now 2.65/2.7 range. Support 2.45/2.5 range. Volume is still high. I might have sold too early 😃

1 day ago