Rubber Products (Gloves, Condoms etc)

Re: Rubber Products (Gloves, Condoms etc)

Postby winston » Thu Jul 02, 2020 8:57 am

not vested

Rubber Gloves
No concern on lower ASPs and oversupply


Yesterday, an article from the Star highlighted that there is an oversupply of gloves in the market, leading to a gradual decline in ASPs.

Based on our channel checks, glove makers’ order book visibility remains strong (6-8 months) with expectations of further hikes in glove ASPs.

We stay sector Overweight, with Top Glove and Supermax as our top picks.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 02DC54118F
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Re: Rubber Products (Gloves, Condoms etc)

Postby winston » Wed Jul 15, 2020 6:47 am

MIDF: Neutral On Glove Makers

MIDF Amanah Investment Bank Bhd analysts wrote in a note today that MIDF expects earnings outlook for glove makers to remain positive in the second half of 2020 (2HCY2020), due to continuous upward revision in glove average selling prices besides favourable foreign exchange, as well as raw material prices.

"We opine that the tight supply situation in the gloves industry would continue in the medium term.

Nevertheless, we believe that the positives have been largely priced in following the good run in share prices of glove counters, which had made the glove counters trading above its multiple year +2 standard deviation PER (price-earnings ratio).

"Hence, we maintain NEUTRAL on the sector," they said.

Source: The Edge

https://www.theedgemarkets.com/article/ ... fit-taking
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Re: Rubber Products (Gloves, Condoms etc)

Postby winston » Thu Jul 16, 2020 10:08 am

Robust glove demand sustainable

We reiterate our positive view on the Malaysian glove sector following the briefing by MARGMA yesterday.

MARGMA expects global rubber glove demand to reach 330bn pieces in 2020F, with Malaysian glove makers meeting about 67% of this demand.

Maintain Overweight, with TOPG and SUCB as our top picks in the sector.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 82B77FAC66
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Re: Rubber Products (Gloves, Condoms etc)

Postby winston » Wed Jul 22, 2020 9:15 am

The glove put warrants poser

by Lai Ying Yi

KUALA LUMPUR (July 14): It is undeniably a bull market for the glove makers currently.

However, an interesting trend has also emerged in the local market on Monday — an equally frenzied buying of two newly-listed structural put warrants on Top Glove Corp Bhd (Top Glove-HA) and Supermax Corp Bhd (Supermax-HB).

The prices of the two derivatives, a bear market tool, rocketed over 200%. Top Glove-HA soared by 207% and Supermax-HB by 291%, on the day when the two underlying stocks climbed to their all-time highs.

Supermax saw its biggest ever share price leap of RM2.36 to RM15.98. Top Glove’s share price gained RM2.08 or 9.5% to RM24.

Based on the exercise price and conversion ratio, the put warrants are pricing the mother shares at RM2 for Top Glove and 30 sen for Supermax.

Source: The Edge

https://www.theedgemarkets.com/article/ ... ants-poser
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Re: Rubber Products (Gloves, Condoms etc)

Postby winston » Mon Jul 27, 2020 8:48 am

Rubber Gloves – Malaysia
Blockbuster Earnings Growth Yet To Be Fully Priced In


Industry outlook has improved further, with higher ASP revisions and spot sales mix.

The impact on earnings has yet to be fully factored in by consensus, possibly catalysing valuations ahead.

Meanwhile, vaccine discovery could spark kneejerk selling.

However, as demand is unlikely to be immediately impacted, it could represent an opportune entry.

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

Source: UOBKH

https://research.uobkayhian.com/content ... f257d4c69b
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Re: Rubber Products (Gloves, Condoms etc)

Postby behappyalways » Sat Aug 15, 2020 5:59 pm

Malaysian rubber glove makers see stocks rally on coronavirus pandemic sales
https://www.youtube.com/watch?v=LWM5v0noE5A
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Re: Rubber Products (Gloves, Condoms etc)

Postby winston » Tue Aug 25, 2020 8:24 pm

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AmBank Research says glovemakers fully valued, downgrades to 'neutral'

by Adam Aziz

AmBank Research opined that the elevated average selling prices (ASPs) enjoyed by glovemakers “will begin to taper off in 1Q21”.

Top Glove is currently trading at CY21F PE of 43.3 times, which is two standard deviations (SD) higher than its three-year average forward PE of 28.9 times.

Kossan’s CY21F PE of 26.0 times is almost 1SD higher than its three-year average forward PE of 23.7 times.

Hartalega is trading at a CY21F PE of 40.9 times, which is slightly higher than its three-year average PE of 39.5 times.

AmBank Research noted that the planned capacity increase of 126 billion pieces or 54% by end-2022 “will more than offset” demand increase, and that the recent strides in Covid-19 vaccines will affect ASPs as well.

“The big glove producers (Top Glove, Kossan, Hartalega, Supermax Corp Bhd and Thai-listed Sri Trang Agro Industry PCL) have plans to increase capacity by 21% in 2020, 23% in 2021 and 27% in 2022,” the research house said.


Source: The Edge

https://www.theedgemarkets.com/article/ ... es-neutral
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Re: Rubber Products (Gloves, Condoms etc)

Postby winston » Fri Sep 04, 2020 9:44 am

Rubber Gloves – Malaysia
Vaccine Fears Overplayed As Demand Is Firmly Intact


2Q20 results are only a prelude to windfall earnings ahead.

From now through to Oct 20,we expect steeper-than-expected ASP rise of 30% mom.

Meanwhile, ASPs of latex gloves are expected to narrow on its 50% discount to nitrile gloves in the quarters ahead on supply-capped nitrile gloves.

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

Source: UOBKH

https://research.uobkayhian.com/content ... 16ef2006fd
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Re: Rubber Products (Gloves, Condoms etc)

Postby winston » Sat Sep 05, 2020 8:42 pm

Malaysia's glove makers struggle to meet booming demand

US-based Allied Market Research estimates that the global disposable gloves market amounted to US$6.8 billion in 2019, and is expected to nearly triple to US$18.8 billion by 2027.

Malaysia is the world's biggest maker of rubber gloves, accounting for around 60 per cent of global exports.

And according to the Malaysian manufacturers' association MARGMA, worldwide demand is projected to rise from 296 billion in 2019 to 330 billion this year.

Malaysian manufacturer Top Glove, which describes itself as the world's biggest producer of rubber gloves, said it is seeing orders for 11-12 billion a month, compared with 4.5 billion prior to the pandemic.

As a result, customers must now wait nearly 600 days for their orders to be filled, compared with a normal delivery time of 30-40 days, said chief executive, Lim Wee Chai.


Source: AFP

https://www.nst.com.my/world/world/2020 ... ing-demand
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Re: Rubber Products (Gloves, Condoms etc)

Postby winston » Sun Sep 13, 2020 8:38 am

Much verbal sparring over glove makers

By M. Shanmugam

IN a space of just 15 days Macquarie Research, a well-respected research outfit, has done something quite unexpected. It drastically changed its outlook on Top Glove Corporation Bhd, sparking a huge debate.

The debate wasn’t just about the value of the major glove manufacturer’s stocks. The crux of the debate, in fact, was about the quality of research reports on the company and whether it is compromised by the interest of investment banks issuing structured warrants that are based on the stock.

Just recently, on Aug 24, Macquarie issued a report setting the 12-month target price for the Top Glove at RM30.40. Taking into account Top Glove’s two-for-one bonus issue that took effect on Sept 4, the target price should be adjusted down to just above RM10.

However, last Wednesday, Macquarie downgraded Top Glove to RM5.40, more than 45% of the adjusted price post the bonus issue. In just 15 days, Macquaries changed its call on the stock from an out-perform to an under-perform.

The rule of thumb is that when there are too many structured warrants being issued, the stock will see heavy price volatility.

Source: The Star

https://www.thestar.com.my/business/bus ... ove-makers
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