Should be flying anytime soon after SPMX.

I still hold TG, originally wanted to sell last Friday but I believe in the fundamentals.

Nobody is expecting glove sales to go back to pre-covid levels.

The average analyst prediction for revenue in FY22 is roughly RM15bn.

Throw in the predicted RM10bn profits for FY21 and you have a bargain stock.

Sales will decline in FY23 but will still be way higher than FY19.

https://www.theedgemarkets.com/article/bull...21-falling-fy22

Yeah, that's not what the analysts are predicting though.

Face masks are being bought by individuals but gloves aren't. Gloves are bought by hospitals and medical facilities mostly. Hospitals in Europe and the US are running at full capacity, hence the lockdowns. A lot of surgery is being postponed because the hospitals are full of covid patients. When the pandemic ends, those hospitals will return to 90% capacity. Nurses and doctors will still need to wear gloves and dispose of them once used on one patient.

We will see a fall in glove sales but only to 80-90% of pandemic sales.

The analysts are predicting that the demand for gloves will continue to be high through 2023.

https://www.thestar.com.my/business/busines.../strong-rebound

For TG to venture into another industry is an outright dumb idea.

When it could, doesn’t mean it should. TG is world-leader in the glove manufacturing industry, shareholders invest in TG for that sole reason, not for them to expand to an industry they have no expertise in. Glove demand continues to soar even AFTER pandemic ends, one will not be receptive to FACTS when the mind is closed.

Contact lenses segment is under healthcare industry, and Supermax has been in it all these while. Not jumping into an irrelevant industry like acquiring AAGB mentioned by icemanx. It’s stupid.

For reasons, the herd is destined to end up in the slaughterhouse or over the cliff.

It is natural for those non-vested to believe demand and asp will drop after pandemic. However, the reality will be different.

If one understands how syndicate operates will think otherwise.

A retailer trying to discern himself from other retailers, face thicker than wall.

2.5 is laughably low. Sure ASP and demand will normalize. But don't forget the CASH they accumulated and investments made.

3.5 seems fair by JP morgan

1) New Competitors (Not only from Malaysia) booming up.
2) ASP dropping
3) panic buy dropping
4) government getting poorer (forcing them closer to collect windfall tax)
5) US keep condemning Malaysia glove makers time to time.
6) more costly to resolve labour wellness issue. (unless they fully reformed into IR 4.0 with minimum labour)

conclusion: not until next massive pandemic in 5 to 10 years to have the same miracle happen again.