Nitrile glove price in september 2021 is cheaper than april 2020. increased in volume could mean gained market share from other countries.

For u.s market, nitrile glove took 15 months from april 2020 price to reach peak price and 3 months to drop below april 2020 price. oops! broken clock strike again.

This post has been edited by icemanfx: Oct 23 2021, 01:19 AM

Top Glove sits on RM860 mil paper loss on massive share buyback

https://www.theedgemarkets.com/article/top-...e-share-buyback

It is a matter of time, topg need to realize this loss in p&l.

This post has been edited by icemanfx: Nov 2 2021, 09:44 PM

Quoting current PE for a downtrend earning could be blindsided.

May be some major shareholders intended to sell substantial sum and tansri doesn't want these selling to cause price to drop.

KUALA LUMPUR (Nov 17): JP Morgan which has been bearish on the glove sector since last year, has once again slashed its target price (TP) for Top Glove Corp Bhd to RM1.50 — a 67.33% discount from its current price of RM2.51 — while maintaining an “underweight” rating.

In a note, JP Morgan said the market is underestimating the potential impact of the bottoming gloves average selling price (ASP) and the shift in pricing power back to the buyers.

The note also covered Hartalega Holdings Bhd and Kossan Rubber Industries Bhd. JP Morgan gave an “underweight” rating and a fair value of RM4.00 to Hartalega, 36.25% lower than its current price of RM5.45 while Kossan’s rating was “neutral” and its fair value is pegged at RM2.00, down 3.5% from its current price of RM2.07.

JP Morgan analysts Jeffrey Ng and Sean Teo said the operating margin per unit (OPM) from the latest results briefings from the Malaysian glove makers might fall below pre-Covid-19 levels despite earlier estimates forecasting a better-than-pre-Covid-19 OPM.

“The industry is still finding [its] bottom. Note that glove ASP has dropped from US$115 in Feb-21 to today’s US$28-$30. It is now clear that glove ASP has reverted to a cost-plus basis. Channel checks indicate that current OPM is already nearing pre-Covid-19 margins. But the main question is will margins compress below pre-Covid-19 levels due to intensified competition from China? The risks are tilted toward the downside and the market, in our view, has not fully discounted this risk,” the analysts wrote.

They also cut the OPM assumptions by 20%-30% similar to pre-Covid-19 margins of US$2.4-5 and said that the glove makers will see a mean reversion and trade at their respective historical trading ranges of 13-18 times earnings unless a price war happens.

https://www.theedgemarkets.com/article/jp-m...underestimation

P.s I am only a messenger.

This post has been edited by icemanfx: Nov 17 2021, 10:35 PM

China glove export data october 2021





It seems october price was below q2/20 level and china nitrile glove export in october is many folds of q1/20.


This post has been edited by icemanfx: Nov 21 2021, 08:13 PM

On November 8, the USTR extended the expiration date for tariff exemptions on 81 out of 99 types of personal protective equipment for six more months, until May. But the tariff exemptions for the remaining 18 products will expire at the end of this month, including certain types of face masks, hand sanitisers and disposable gloves.

https://www.scmp.com/economy/china-economy/...ck-after-nearly

May mean disposable gloves is no longer critical in the u.s and likely to benefit local exporters to the us. expect china gloves exporter to dump excess supply and price in other markets.

The world's largest vaccine maker will halve the production of its Covid-19 vaccine because it has no fresh orders, its top-ranking executive has said.

India's Serum Institute is sitting on a stockpile of half a billion doses of Covishield, the local version of AstraZeneca's Vaxzevria jab, the firm's CEO Adar Poonawalla told CNBC-TV18.

https://www.bbc.com/news/world-asia-india-59574878

Similar stockpile could occur for gloves.

This post has been edited by icemanfx: Dec 9 2021, 07:28 AM

KUALA LUMPUR (Dec 10): Top Glove Corp Bhd reported on Friday that its first quarter (1Q) net profit dropped sharply to RM185.72 million from RM2.36 billion a year earlier on lower revenue.

In a statement to Bursa Malaysia, Top Glove said revenue fell to RM1.58 billion in the first quarter ended Nov 30, 2021 (1QFY22) from RM4.76 billion a year earlier.

https://www.theedgemarkets.com/article/top-...6b-year-earlier

Don't shoot me, i am only a messenger.

it seems nitrile glove price in november 21 was at pre-pandemic level. forecast q4/21 profit is >30% lower than q3/21.

gain of nitrile glove export were mostly from anhui and jiangxi province. it seems china producers have taken substantial market share from mys.

This post has been edited by icemanfx: Dec 21 2021, 12:10 AM

Catching a falling knife could end in injury.

For reasons, most herd members end in slaughterhouse or over the cliff.

In glove production, heating is a significant cost and not viable to run production line at below full capacity.

Given supply > demand in the industry, profit margin will likely razor thin and some may operate at losses.

Glove asp is the product of demand and supply, and price trend in last few months said otherwise.

if one knows glove industry long enough is aware profit margin is razor thin and many weren't profitable.

china customs data is not from media.

A channel to move shareholders funds to overseas.

China customs data said otherwise. if you are vested then share price will reflect after next qr.

In time, share price will tell whose data is fake.

Then why bother with topg?

Then why bother with fundamentals?


This post has been edited by icemanfx: Dec 29 2021, 11:21 AM

If share price is not correlated to cagr or fundamental; beside academic purpose, how cagr could be relevant to #retailers?

This post has been edited by icemanfx: Dec 29 2021, 11:45 AM