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asp dropping already priced in from 10 to 3.20. now poorer results to confirm what have been estimated back in Nov 2020, dropped to 2.95. all bad news out already, all TP hit already.
this pandemic has trigger worldwide businesses to start looking into this glove biz... i think over the next few years market share of malaysia glove maker will shrink and pretty sure by that time every glove maker will fell into price war in order to survive... that's the reason why people are shorting gloves counter... share price reflect whats coming up, not the history... Buy with cautious.
Dollar cost averaging, tell me more about that if you bought lot of shares at rm9, you averaged at RM7, RM5, RM 3 and if the price dipped to RM 2 and then it fluctuated around 2 and 3, would you think it works? With your dollar cost averaging...
They have been operating for more than 30 years and been going up n down and competition. In fact back in early 2000 there were so many consolidation and many small players closed biz due to price war. China no longer has the lower cost advantage as China no longer like 20 years ago. Their ppl has been earning higher wages and the standard of living is much higher now. you think still like Tong Shan meh? Malaysia is the cheaper country now lah.
sale to usa etc will be there due to china vs others geopolitical trade wars.. however, how low the asp and the demand will be in the future. price today reflects optimum/optimistic figures... better be careful than sorry..
you go and see that stats reports lah by those research company. average yearly earning for manufacturing in China is around 80k yuan. Malaysia average yearly earning is only around rm30k. that s y now those low end manufacturing is moving from China to Myanmar and Cambodia.
Hin Long, stop mentioning rm9, that s old news already. already flushed inside toilet and recycled by Indah Water..now we are talking about rm4, rm3 and rm2
I suspect the buying crowd got they also lo. today Friday, they might continue until reaching the price that the entities richer than them think decent. or the price that they think it's no longer profitable for them to push lower.
Ngaiti, according to what you made pe 25-30 this prediction? Pe 25-30 consider business with good future, growth stock. But top glove now is not considered growing, it is shrinking oh.
Soleh Ahmad, Harta boss said ASP only would normalize in q1 2022. now just q3 2021..yet to normalize. you may wanna reduce that to 400 million perhaps.
my maths no good, what I know is precovid profit 100Mx4, price around RM4.2, which is about today's RM1.40. You all sifu2 calculate then let me know la ha, example scenario like 200M/quarter ; 300M/quarter ; 400M/quarter also can. the more complete the better :)
additional 4 billions cash, that would give another 50 sen per share. Hence 2.6-2.8 valuation as per JPMorgan. all this with no additional valuation on branding, expansion, automation, cost reduction, new viruses, new variants, etc lah.