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the key in coming weeks is the financial report and how much divident they going to give..
if lousy, the share will tank.
Seems UG' s factory in Malaysia is not as badly affected as that of Top Glove. Hope they can continue to run. Top Glove is very big and has several factories so they can afford to close one.
Haha Boom Time Charlie for all. Fortunately these companies have a lot of cash so they are pretty safe ... the factories should be fully operational maybe after a month in worst case.
Pikachaimai ( Date: 07-Jul-2021 16:56) Posted:
if market are already factoring in all the negative side..
what do you think will happen when suddenly good news comes?
dyodd |
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if market are already factoring in all the negative side..
what do you think will happen when suddenly good news comes?
dyodd
Market could be trying to test the down side for this stock. Hopefully it can find a support level here.
EMCO: Suspension of glove factories' operations affect earnings, overseas interests, says Maybank IB
Wednesday, 07 Jul 2021 11:45 AM MYT
Maybank IB said that the suspension of the glove factories in Selangor is expected to affect about 55 per cent of Top Glove&rsquo s and 100 per cent of Hartalega and Kossan&rsquo s total production capacity. &mdash Reuters pic
KUALA LUMPUR, July 7 &mdash The temporary shutdown of glove factories will not only affect companies&rsquo earnings but could also jeopardise their relationships with overseas buyers, especially when Malaysian glovemakers are facing escalating competition from China&rsquo s glovemakers.
In a research note today, Maybank Investment Bank (Maybank IB) noted that Top Glove, Hartalega and Kossan had suspended the operations of their respective glove manufacturing facilities in Selangor yesterday due to the enforcement of the Enhanced movement control order (EMCO).
The investment bank said it was taken aback by the latest development as the glove is one of the personal protective equipment (PPE) essential items, and the factories had been allowed to operate during the first MCO.
&ldquo Assuming a two-week suspension of glove factories in Selangor under EMCO, we expect our financial year 2021 (FY21) core net profit forecasts for Top Glove and Kossan to decline by 7.4 per cent and 16 per cent, respectively,&rdquo it said.
Maybank IB forecasts that Hartalega&rsquo s net profit could drop by 16 per cent in FY22 due to the suspension of operations.
It added that the suspension of the glove factories in Selangor is expected to affect about 55 per cent of Top Glove&rsquo s and 100 per cent of Hartalega and Kossan&rsquo s total production capacity.
The investment bank noted that while the impact on the glove companies&rsquo earnings is still manageable and temporary, investor&rsquo s sentiment towards the glove counters could be further eroded by the latest development.
The sector&rsquo s outlook is currently clouded by ongoing negative news such as declining average selling price (ASP) due to intensifying competition among the new and existing glove players, as well as environmental, social and governance risks.
In a separate note, AmInvestment Bank said the shutdown will likely decelerate the slide in the glove&rsquo s ASP, as supply is temporarily capped.
&ldquo We believe that the EMCO will be implemented for at least one month, before a return to MCO conditions.
&ldquo We do not discount the possibility that these companies will be granted approvals to resume production, given the importance of gloves in managing the spread of Covid-19,&rdquo it added.
The investment bank adjusted its fair values of glove companies to incorporate the EMCO and MCO disruptions, slower declines in glove&rsquo s ASP and a sharp drop in post-pandemic glove demand.
It had also lowered its price-to-earnings ratios to factor in the factory closure-induced negative investor sentiment.
&ldquo We urge investors to look past supernormal profits brought about by the spike in cases due to the Delta variant.
&ldquo The variant may result in gentler drops in quarterly earnings, but we doubt it will affect post-pandemic glove demand in a significant way, even if the virus becomes endemic,&rdquo said AmInvestment Bank.
It noted that the Delta variant would slow the fall in glove&rsquo s ASP, as glove urgency is buoyed by the rise in cases, and the smaller decline in the ASP would help support earnings of the glove companies in the next 12 months.
As at 10.45am, Hartalega rose three sen to RM7.09, Top Glove fell two sen to RM3,92, and Supermax was flat at RM3.14. &mdash Bernama
Yes its good to be cautious, but I think it is bottoming out soon.
Do you all want to ended up like Top Glovers. ?
they kept on refuting and mislead their own fellow investor kept buying dip until they finally concede that there are something wrong with company itself.
ug healthcare unfortunately is tag along with them and was affected by them
Hellvish ( Date: 05-Jul-2021 14:08) Posted:
Not sure of Tonyja purpose here in UG.
if you want to discuss about TG, you can do so in TG tread and not copy paste article all the tread.
Longtermer ( Date: 05-Jul-2021 13:56) Posted:
Hope you can do more research before misleading ppl here.
US ban is on Top Glove gloves.
US is also not UG main mkt.
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Hope so too. Support at 555 previous low.
Richardlai ( Date: 05-Jul-2021 17:08) Posted:
Noticed some buying at close to clear most of the sellers at 56 cents. Not sure if it is short covering at the end of the day, but why wait till the last 5 minutes. Guess same guys could be buying and selling too.
Hopefully UG starts turning around from here. |
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Noticed some buying at close to clear most of the sellers at 56 cents. Not sure if it is short covering at the end of the day, but why wait till the last 5 minutes. Guess same guys could be buying and selling too.
Hopefully UG starts turning around from here.
Not sure of Tonyja purpose here in UG.
if you want to discuss about TG, you can do so in TG tread and not copy paste article all the tread.
Longtermer ( Date: 05-Jul-2021 13:56) Posted:
Hope you can do more research before misleading ppl here.
US ban is on Top Glove gloves.
US is also not UG main mkt.
tonyja ( Date: 05-Jul-2021 13:09) Posted:
| The fundamental is not intact. The asp is dropping and status of US ban has no change |
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Hope you can do more research before misleading ppl here.
US ban is on Top Glove gloves.
US is also not UG main mkt.
tonyja ( Date: 05-Jul-2021 13:09) Posted:
The fundamental is not intact. The asp is dropping and status of US ban has no change
Longtermer ( Date: 05-Jul-2021 12:56) Posted:
Current sentiment is unfavorable even the fundamentals are still intact.
Top glove is being shorted big in Bursa pulling down all counters.
Yes, its better not to sell or buy even though the glove companies are all Oversold.
Definitely do not contra.
Waiting to buy BIG when the sentiment or trend change which will come anytime soon.
The UG results will vindicate and reward all shareholders in due time.
At 56.5c, trading at 2.8 times?
Cash company (no debts) with expansion plan in progress.
Dyodd.
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Yes u r write. But they implicate ughealthcare in certain way
Hellvish ( Date: 05-Jul-2021 13:45) Posted:
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UG Healthcare main focus is on Europe and South America region.
Ban in US will most likely affect TG and not on UG
https://links.sgx.com/FileOpen/UGHC_News%20Release_1H%20FY2021.ashx?App=Announcement& FileID=647297tonyja ( Date: 05-Jul-2021 13:09) Posted:
The fundamental is not intact. The asp is dropping and status of US ban has no change
Longtermer ( Date: 05-Jul-2021 12:56) Posted:
Current sentiment is unfavorable even the fundamentals are still intact.
Top glove is being shorted big in Bursa pulling down all counters.
Yes, its better not to sell or buy even though the glove companies are all Oversold.
Definitely do not contra.
Waiting to buy BIG when the sentiment or trend change which will come anytime soon.
The UG results will vindicate and reward all shareholders in due time.
At 56.5c, trading at 2.8 times?
Cash company (no debts) with expansion plan in progress.
Dyodd.
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The fundamental is not intact. The asp is dropping and status of US ban has no change
Longtermer ( Date: 05-Jul-2021 12:56) Posted:
Current sentiment is unfavorable even the fundamentals are still intact.
Top glove is being shorted big in Bursa pulling down all counters.
Yes, its better not to sell or buy even though the glove companies are all Oversold.
Definitely do not contra.
Waiting to buy BIG when the sentiment or trend change which will come anytime soon.
The UG results will vindicate and reward all shareholders in due time.
At 56.5c, trading at 2.8 times?
Cash company (no debts) with expansion plan in progress.
Dyodd.
Richardlai ( Date: 05-Jul-2021 12:11) Posted:
| Agreed all the glove stocks are going down the drain currently. Drop is slow ..... guess there are still people getting out. |
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Current sentiment is unfavorable even the fundamentals are still intact.
Top glove is being shorted big in Bursa pulling down all counters.
Yes, its better not to sell or buy even though the glove companies are all Oversold.
Definitely do not contra.
Waiting to buy BIG when the sentiment or trend change which will come anytime soon.
The UG results will vindicate and reward all shareholders in due time.
At 56.5c, trading at 2.8 times?
Cash company (no debts) with expansion plan in progress.
Dyodd.
Richardlai ( Date: 05-Jul-2021 12:11) Posted:
| Agreed all the glove stocks are going down the drain currently. Drop is slow ..... guess there are still people getting out. |
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Agreed all the glove stocks are going down the drain currently. Drop is slow ..... guess there are still people getting out.
UG has been dropping since the day it split shares. I really wonder why still so many investors so hopeful that it will go up. I have lost quite a bit on this counter. Am still holding some. Once I breakeven (hopefully), I'll sell n never touch it again.
Seems this thread still active. Was wondering why is there a new UG thread.
Seems today is no difference UG retreating.
Drop in some of the glove counters like Top Glove could also be due to Funds like EPF selling some shares to help some Msian Govt bodies that need funds. But with commodities and oil prices up Msia should be able to manage ... they have plenty of resources.
