Rubber Products (Gloves, Condoms etc)

[winston]

Uptrend on the cards for glove counters

by Aishah Mohmad Afandi

Since March up to mid-August, seven Malaysian companies namely Top Glove, Hartalega, Supermax, Kossan Rubber, Careplus Group, Rubberex and Comfort Gloves have seen RM80 billion being poured into the stock market.

In terms of market capitalisation, Top Glove stands at RM62.97 billion, Hartalega (RM42.64 billion), Supermax (RM19.33 billion), Kossan Rubber (RM13.66 billion), Comfort glove (RM2.14 billion), Rubberex (RM1.46 billion) and Careplus (RM1.36 bilion).

Source: Bernama

https://www.theedgemarkets.com/article/ ... e-counters

[winston]

A firm grip in the storm

We believe that concerns on a decline in ASPs remain unwarranted at this juncture, with expectations of ASP hikes up to at least 1QCY21F.

The Malaysia glove sector is currently trading at 24.3% discount to its 5-year mean, in spite of its strong earnings prospects in the next 12 months.

Reiterate our sector Overweight call, with Top Glove and Hartalega as our top picks.

Based on our estimates, glove ASPs could rise by 10-45% qoq in 4QCY20F to US$50-100 per 1,000 pieces, which is above our current forecasts.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 2C74218D57

[winston]

Rubber Gloves – Malaysia
Raw Material Shortage Likely To Push Earnings Further

There is an NBR shortage in the market, limiting new entrants.

Existing glove demandsupply dynamics would facilitate higher NBR cost pass through.

It would also prompt a demand switch to latex gloves, which is likely to narrow its discount to nitrile glove ASPs.

Among the key beneficiaries is Top Glove.

Maintain OVERWEIGHT on the sector as we believe the risk-reward trade-off remains attractive. Top pick: Top Glove.

Source: UOBKH

https://research.uobkayhian.com/content ... 5a5d0f031d

[winston]

ASP for nitrile gloves to grow 30% in October and 15% in November, says Top Glove

by Justin Lim

Lim said glove demand is estimated to grow by 20% per annum in 2020, 25% in 2021 and 15% in 2022, compared with the 10% annual growth seen before the pandemic outbreak.

The surge in global demand — anticipated to be 200 billion pieces by 2022 — will outstrip the estimated new supply coming in from major manufacturers in Malaysia.

Source: The Edge

https://www.theedgemarkets.com/article/ ... -top-glove

[winston]

Concerns over potential windfall tax

Heading into Budget 2021, there are growing concerns of a potential windfall tax on glove companies.

In our view, implementation of a windfall tax of any sort will have negative
implications on the sector, particularly its long-term prospects.

Maintain Overweight call for now due to its strong earnings growth prospects.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... D938D211DB

[winston]

not vested

In the time of need, help arrives

In Budget 2021 announcement today, Top Glove, Hartalega, Supermax and Kossan committed to contribute a total of RM400m to fight Covid-19.

We assume this as one-off non-recurring contribution, and will not affect our core EPS estimates for the companies.

Reiterate Overweight, with Hartalega and Top Glove as our top picks

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... BCB72FA73E

[winston]

Covid-19: RHB says vaccine deployment could generate demand for up to 18 billion pieces of gloves a year

by Tan Siew Mung

KUALA LUMPUR (Nov 19): RHB Investment Bank Bhd said today Covid-19 vaccine deployment could be a new demand source for rubber gloves at up to 18 billion pieces a year assuming that 60% of the world’s population of 7.5 billion people will get the vaccine in two doses annually.

"As each contact with a person should lead to the usage of one pair of disposable gloves, a vaccine deployment will generate demand of 18 billion pieces per annum in the short term.

If the vaccine protection period is only up to a year, this 18 billion pieces per annum demand will recur on an annual basis. This is equivalent to 6.8% of the 263 billion pieces per annum global gloves demand in 2019,” RHB analyst Alan Lim wrote in a note today.

Source: The Edge

https://www.theedgemarkets.com/article/ ... loves-year

[behappyalways]

Top Glove: Glove prices may rise
https://www.youtube.com/watch?v=DagT7hFsjLA

[winston]

Nitrile latex could hit all-time high this month, raising glove production costs by 70% q-o-q — KAF Research

by Tan Siew Mung

KUALA LUMPUR (Dec 2): KAF Research said nitrile latex price could well breach US$3,000 per metric ton (pmt) in December, compressing the margins of some glove makers.

Nitrile latex price has more than doubled to US$2,810 pmt from its lowest this year at US$1,300 pmt in April due to tight supply.

At US$3,000 pmt for nitrile latex, he estimates the cost to produce 1,000 pieces of nitrile gloves would increase by 70% quarter-on-quarter (q-o-q) to RM120.

“We expect nitrile latex price to continue to rise throughout 2021 and could only ease towards the end of 2022 once suppliers’ capacity expansion projects are completed”.

Hartalega Holdings Bhd and Kossan Rubber Industries Bhd remain as the two most nitrile-focused players as their product mixes skew largely towards nitrile gloves at 95% and 80% share, respectively.

Hartalega guided for about 45% q-o-q increase in ASP while Kossan’s ASP would increase by about 25% q-o-q next quarter.

Source: The Edge

https://www.theedgemarkets.com/article/ ... %80%94-kaf

[winston]

Malaysian rubber glove year of mixed fortunes

Malaysia supplied 240 billion pieces of rubber gloves globally, meeting almost 70 per cent of 360 billion pieces of world demand in 2020.

Malaysia’s market share is expected to improve to 68 per cent when the country supply 280 billion pieces of rubber gloves next year (against the 410 billion pieces world demand) from the 67 per cent market share in 2020 (360 billion pieces world demand).

Margma predicts the industry’s revenue at RM32.2 billion this year, higher from the RM19.8 billion recorded in 2019. For 2021, revenue could range between RM36 billion and RM38 billion, on the back of robust demand.

Source: Bernama

https://www.malaymail.com/news/money/20 ... es/1929278