Covid has not ended, yet their stock price has now dropped to pre-mco level & with much much more extra cash on hand. You don't think it's undervalued?

The market saying TG's expansion plan have been KIV recently due to the China competition, anyone can verify the hear say?

Not saying we should jump in and buy now, but I'll monitor and wait for the prices go back to 1.50 levels. I'm optimistic that the earnings will stabilised, it's a risk I'm willing to take.

SARs time was the same it ran up and price dropped 60% for about 2 years only. Then it just kept going up and up.

It's been dropping for over a year.. if the price reach my projected DCF model's fair value then I'd start buying, nobody can predict exactly where the bottom is right.

Sure give it a discount, otherwise how should we value a company?

What do you think topglove is worth now with all the negative news?

Does China have so much access to raw rubber like Malaysia? As I know Malaysia has natural rubber resources. That's a advantage for glove industry in Malaysia.

These days you don’t need so much rubber for gloves as you can see from nitrile gloves 

Malaysia has the advantage because they have nitrile raw material with petrochemical access while China is still importing it from abroad but the scale of production trumps easily within the next decade

Anyway, no one knows the future, it's too early to say anything unless we see it with our own eyes. If in 2019 someone were to say top glove will shoot up to rm23, nobody will believe. No doubt the profit for glove will reduce, but whether China will succeed in glove manufacturing or not, that remains to be seen.

Currently at the moment China Glove industry is still in infancy and TG has a plant there albeit small exposure

And there’s isn’t listed company in China yet so you can just wait to accumulate then 
Is still infancy but you got to remember it still dependant on commodities that is extracted by other countries

Hence it is just like China steel industry whereby iron ore is being sourced from Australia, Brazil and a few countries and when they start dumping abroad WTO wars will start then

Exporting will be still their main goal with price dumping in mind     

A big advantage is also in our ability to innovate like Hartalega. If they were able to disrupt the industry many times in the past, then it is entirely possible for them to continually to do so because it is in their DNA.

People now made it seem like just because China has some advantage during the pandemic, our companies will start failing and lose money from here on.

30 years in the business. Highest quality grade gloves. Good relationships with the clients around the world. Billions of net cash sitting in the war chest. Market consumption still projected to have 10% yearly growth.

Is it really that bad of an investment? If Malaysian glove companies lose market share, then just switch to China companies. But don't forget China also got a lot of issues right now and foreign investors are running away from them.

Maybe, just maybe we should have a little more faith in our capabilities.

Agreed much better gems around for Glove plays with Harta and other regional gems around 
You haven’t forget that even with FDA approval that CBP can withhold from getting into US as ESG in play on whether where and how it was produced with     

At the moment but who knows in future

Just look at Semiconductors tariff and bans imposed by the US to China

It might happened in the future but who knows 

Not necessary if the cartels of glove companies band up control the supply

Currently those who are on expansions band will be hit terrible and newcomers like Mah Sing will be interestingly too see their next quarter results

That's true. It can definitely go lower.

yes, everyone is pumping in tons of capex for expansion on top of the entry of many new players

I am thinking like does the market has this much of demand to stomach the supply actually?

lets say pre-covid demand is with a base of 100, post-covid, stablized with demand like wat? 120?

now the post-covid supply is definitely more than 120 already, means their capacity utilization will be low + depressed low asp

or I am seeing this wrongly?

I think that's a fair assessment.

The one thing, highlighted in the UG Healthcare report was the stocking issue. When covid was hitting hard March 2020, many customers ordered excessively for sticking. Now during a time when supply is easily available and prices lowering, glove customers are not gonna order excessively for stocking purposes. They are gonna be more stingy with their purchases too.

Another point, was the customer/supplier relationship strained last year due to the excessively and constant price increases. Would the customers be looking for alternative supplier?

Glove was deemed a sunset industry as recently as 2019... would we see a repeat soon?

Seems like 2.66 was a good buy.