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UGHealthcare
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UGHealthcare share worth keeping?
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tonyja
Elite |
16-Jul-2021 22:08
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https://www.globaltimes.cn/page/202107/1228783.shtml   Chinese glove makers see rising orders from overseas 
By Yin Yeping  Published: Jul 15, 2021 08:48 PM
     
An employee works at a medical glove factory in Luannan county, North China' s Hebei Province. The county, with an annual output of over 4 billion yuan ($619.13 million) worth of medical gloves, has in recent years aimed to build itself into a manufacturing base for this product. Photo: cnsphoto Chinese glove makers are meeting rising demand from the US and Europe, with new order inquiries jumping by 10-20 percent in weeks, amid production disruption caused by a flare-up of epidemic in Malaysia, the world' s largest rubber-glove supplier.  In the face of the new orders, major industry players have been working at their full swing to expand production capacity, the Global Times learned. A person with Blue Sail Group, a leading glove maker based in East China' s Shandong Province, told the Global Times on Thursday that it had received rising orders these days, after production was suspended at factories in Malaysia. More than 90 percent of the orders come from developed countries, including the US and some European countries. The orders are in line with the company' s expansion plan, with a new production line with capacity of 20 billion gloves annually to go into operation this month.  Another production line with a capacity of 10 billion gloves is under construction in Weifang, Shandong Province. Another industry player, INTCO Medical, is part of the trend, with " conspicuous" growth in global orders from many of its clients starting in July, media reports said. Malaysia recently imposed stricter restrictions on movement, businesses and factories in its capital Kuala Lumpur, as well as neighboring Selangor state, until Friday to fight a spike in new COVID-19 infections, Reuters reported on July 8. " Malaysian glove manufacturers contribute up to 67 percent of the global supply or 320 billion pieces a year out of 480 billion pieces," The Malaysian Reserve, a business news provider, said in a report earlier in July. China contributes about 10 percent while Vietnam accounts for 3 percent of the global glove supply, the report said, citing Supramaniam Shanmugam, president of the Malaysian Rubber Gloves Manufacturers Association. Chinese glove production capacity used to be inadequate, but there have emerged more rubber glove plants since the epidemic outbreak, industry insiders said. There are 5,384 disposable glove-related companies in China at the moment, after 2,779 companies registered last year and 235 others registered from January to Thursday, data from market information online platform Qichacha showed. In addition to the newcomers, like the mask industry, some companies produced and stockpiled gloves during the outbreak and they are still in the process of releasing the stockpiles, meaning capacity is sufficient for now, Chen Hongyan, secretary-general of the Medical Appliances Branch of the China Medical Pharmaceutical Material Association, told the Global Times on Thursday. While the supply chain disruption in Malaysia is driving more orders to China, industry insiders said that the supply chain transformation is increasingly tilting toward China, with or without the outbreak. " Malaysia is mainly producing natural latex gloves, but the clinical and ordinary gloves used in all walks of life are not latex gloves, but nitrile and other synthetic gloves," Chen said. The sources of natural rubber are mostly located in Southeast Asian countries including Malaysia, making China heavily reliant on imports for natural rubber, which saw a jump in prices lately.  In order to reduce reliance on natural rubber, Chinese companies have focused their development and production efforts on gloves made of nitrile.  This chemical compound is not only less likely to cause allergic reactions and more likely to offer better tensile properties and protection. " The epidemic caused an increase of raw material prices, so we began to develop raw materials independently, and the production line and ingredients of nitrile gloves were independently developed. The yield is adequate," the person with Blue Sail Group said. |
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Everyday
Elite |
16-Jul-2021 17:12
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Opened at 0.590 and closed at 0.590.This morning went up to  0.605 but cannot go further. Next week Mon let' s see it break through the resistance at 0.605  and move upwards
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Everyday
Elite |
16-Jul-2021 10:42
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At 10.40am drop to 0.595 but still higher than today' s opening of 0.590 and yesterday' s opening of 0.550. Yesterday was the best improvement fr 0.550 to 0.590 ( 4 cents within a day). This morning as of 10.42am gained 0.5 cents. See what price by end of today.
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Richardlai
Master |
16-Jul-2021 10:16
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I think at this rate, next week should see some good action. | ||||
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Everyday
Elite |
16-Jul-2021 09:30
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Open 0.590....and now 0.605 at 9.27am...another 1.50 cent up. Top Glove open at 1.31 and now still 1.31. Riverstone open at 1.31 and now 1.33 . Again UG have the highest improvement...1.50 cent within 30 mins. |
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1c2e3s
Veteran |
16-Jul-2021 09:26
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KUALA LUMPUR: The resurgence in global Covid-19 cases and supply shortage in the US will continue to support elevated average selling prices (ASPs) for gloves, which bodes well for glove makers like    Hartalega Holdings Bhd .While demand for gloves is expected to stay strong, there have been notable concerns about the pace of growth in ASPs amidst the rollout of vaccines globally and with more capacity coming onstream.  
While steep ASP hikes are expected to be on hold for now as players realign their supply away from the US & ndash which offers a premium in the 5%-10% range & ndash Hartalega noted that the demand-supply equilibrium remains favourable for manufacturers. Management expects the upcoming quarter to realise higher ASPs on a quarter-on-quarter (q-o-q) basis. & ldquo Management believes ASPs have found a bottom over the near term as the overall demand-supply imbalance remains extremely favourable, highlighting that equilibrium is likely to be achieved only in two years.   & ldquo Besides, instances of a country-specific Covid-19 spike did lead to increased enquiries, such as from India, & rdquo highlighted UOB Kay Hian Research (UOBKH) in a report. The stronger ASP helped buoy Hartalega& rsquo s fourth-quarter revenue despite lower sales volume. The glove maker& rsquo s revenue for the fourth quarter of financial year 2021 (FY21) grew by 196% year-on-year (y-o-y) to RM2.3bil due to ASP increase of 273% y-o-y. However, sales volume was down by 23% y-o-y due to the temporary closure of production lines to curb the spread of Covid-19 in its plants as well as a lack of shipment availability, given the global container shortage. Consequently, the utilisation rate was much lower during the quarter ended March 31,2021 at 64%, as compared to 96% in the fourth quarter of FY20. But as a result of the rising ASPs, Public Investment Bank noted that net margins improved by 33.8 percentage points y-o-y to 48.7%. Net profit also grew by more than eight-fold y-o-y to RM1.12bil. The group is confident that the container shortage will be resolved in the next quarter, which should boost its sales volume in the near term. However, Kenanga Research pointed out that the recently announced results of industry peers suggest that the nitrile ASP uptrend could be waning and is expected to soften albeit at a slower pace on the back of still robust demand. & ldquo But it is unlikely to fall off a cliff, & rdquo the research house said. Kenanga still expects ASP to be higher in the first quarter of FY22. According to the Malaysian Rubber Glove Manufacturers Association, the global shortage of rubber gloves will last beyond first-quarter 2022, with growth rate averaging between 15% and 20% per annum going forward. Lead times are still expected to be high, averaging at six to eight months, which is lower compared to 12-14 months previously. Kenanga opined that the lead times suggest that 2022 demand will remain strong. & ldquo To date, six out of 10 lines in Hartalega& rsquo s Plant 7 have been commissioned. Upon full commissioning, Plant 7 will have an annual installed capacity of 2.7 billion pieces. & ldquo In addition, construction for the upcoming expansion, NGC 1.5, is currently underway and expected to commission the first line by December 2021. & ldquo NGC 1.5 expansion plans include four additional production plants, which will contribute 19 billion pieces to the annual installed capacity. This is expected to increase to 63 billion pieces over the next two to three years, & rdquo it said. Analysts have mainly remained positive on Hartalega& rsquo s prospects, although most have reduced their target price on the counter to factor in the impact of a decline in pricing. Public Investment and Kenanga have & ldquo outperform& rdquo calls on the stock with target prices of RM15.90 and RM16, respectively. UOBKH, meanwhile, called a & ldquo hold& rdquo on the company with a target price of RM9.30. & ldquo We think sentiment should gradually diminish as Hartalega approaches its peak quarterly earnings but is still supported by its windfall earnings. Hartalega deserves to trade at a premium relative to its peers, & rdquo the brokerage said.   |
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Longtermer
Elite |
16-Jul-2021 09:06
Yells: "A disciplined investor is a wealthy investor" |
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Everyday
Elite |
15-Jul-2021 21:21
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👍 👍 👏 👏
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yamseng
Supreme |
15-Jul-2021 20:57
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55 cents nobody want to buy ??. tmr gap up above 60 cents, everyone will rush in to buy, hope that it can reach 70 cents !!   |
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Everyday
Elite |
15-Jul-2021 20:05
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Disposable Gloves Market Size to Reach Revenues of USD 32.24 Billion by 2026 - Arizton 
 
 
Thu, July 15, 2021, 12:00 AM· 6 min read
 
 
CHICAGO,  July 14, 2021  /PRNewswire/ -- In-depth analysis and data-driven insights on the impact of COVID-19 included in this global disposable gloves market report. The global  disposable gloves market  is expected to grow at a CAGR of over 10.84% during the period 2020&minus 2026. Key Highlights Offered in the Report:
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Everyday
Elite |
15-Jul-2021 17:36
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👍 👍 💥 💥 We are all waiting....
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FreedomAngelz
Veteran |
15-Jul-2021 17:32
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It will be a major boost if it can break $0.60 tommorrow....just going to open the floodgate to move up back to $0.70 hopefully | ||||
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Everyday
Elite |
15-Jul-2021 17:29
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Opened at 0.550 and closed at 0.590...up 4 cents. Highest increase among glove counters.......higher than Top glove up 0.8 cents( 1.22 to 1.30) and Riverstone  0.8 cents ( open 1.22 and closed 1.30)   |
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Everyday
Elite |
15-Jul-2021 16:23
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All the best !  I already bought some  last few weeks and months. Waiting for price to recover.  Hope the increase will stabilise too....used to be 0.70 plus.....
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eric998
Supreme |
15-Jul-2021 16:01
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better dont chase first.. i will wait for 2-3 sessions to see trend.. my opinion.. no point risk fake push..
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Everyday
Elite |
15-Jul-2021 14:49
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Cheers to UG! Up fr 0.550 to 0.585!...👍 👍 | ||||
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Everyday
Elite |
15-Jul-2021 14:36
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Wow! UG went up to 0.585..( opening 0.550) Other gloves counters also went up | ||||
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Everyday
Elite |
15-Jul-2021 10:01
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Hope so...but Raffles and Q & M did not improve much.....maybe UG' s turn to go up....UG now up and down fr 0.560 to 0.565  at 10am
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tofudidi
Supreme |
15-Jul-2021 09:36
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medical play coming? | ||||
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Everyday
Elite |
15-Jul-2021 09:35
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Open 0.550.... shot up to 0.560...9.35am....Buyers coming in...very good price | ||||
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