PART 1 : Read Here
Date : 12 June 2020
PART 2 : GLOVES SECTOR – THIS IS MY REAL PLAN ON PHASE II FY20 – FY21
So today as we all know and expected Top Glove Bhd released its excellent and superb quaterly financial result. With strong worldwide demand for rubber gloves amid the COVID-19 pandemic, it is unsurprising that Top Glove Corp Bhd has recorded its best-ever quarterly net profit in the third quarter ended May 31, 2020 (3QFY20)
Top Glove executive director Lim Cheong Guan said strong orders and demand are expected to continue for the next one to two years. In 3QFY20, sales of nitrile gloves jumped 47% year-on-year (y-o-y), natural rubber gloves sales leaped 8%, and surgical gloves sales rose 21%.
From here perspective, we already know how good their business is. So as I told many times Gloves Sector already applied in “Defending Stocks Territory”. Also I am agreed some analysts said Top Glove have projected a net profit of as high as RM3 billion for FY21 So if they really can archieved that of course and definitely my last target RM35 surely hit FY21.
WHAT KIM SAID ABOUT GLOVES SECTOR NOW?
1. “BUY IN JUNE HISTORY WILL REPEAT PREVIOUS APRIL“
– Today we had received very clear signal. We can buyback / Addmore cheap gloves. Follow the waves you will be safe in the ocean.
– Today also I saw many new retailers those bought high cutloss because not have holding power.
– Gloves, for sure now you cant do daytrade. It not easier like before or previous 6 months.
– Tomorrow I am expect Gloves stock only good performance and will lead the market movement.
– After 6 month gloves performing, now another 6 months to go. As I am expecting Gloves will play role till March 2021. So I am not worried holding as investement till next year.
– My planned as follows :
1 month (Buy) next 5 month (Sell) – January – June FY20
1 month (Buy) next 5 month (Sell) – June – Dec FY20
1 month (Buy) next 3 month (Sell) – Jan – Apr FY21
– I am expecting the profits of quaterly and yearly results. Not base on when this Covid-19 will be end and vaccine will be found. So Big-4 gloves profits already calculating on paper profits FY21.
2. “COVID-19 PHASE II JUST STARTED
– COVID-19 heading to 10,000,000 within another 3 months
– COVID-19 heading to 5,000,000 within another 3 months
– Globally, there have been 7,273,958 confirmed cases, including 413,372 deaths has been reported to WHO.
– Case Comparison (Confirmed Cases) as below :
Americas – 3,485,245
Europe – 2,339,145
Eastern Mediterranean – 696,841
South-East Asia – 407,414
Western Pacific – 194,470
Africa – 150,102
3. “OTHERS GLOVES STOCK – LIMITED“
– After 6 month end-up. Others gloves stock like Comfort, Ruberex, Carepls, Esceram etc etc. Must monitor closely and cautiously. Why?
– Because, in my views all of them already hit on limited ceiling. So I dont think it will go more beyond and so far from here. It will have big corrections and adjusting their P/E and their capacity etc Phase II COVID-19 the countries and frontliners already well prepared.
– So my advise is. Only focus Big-4 counter
1. Top Glove
– More worst if others are limited / small production on their exports to other market (International)
– But Big-4 have no problem with their exports/produce capacity, etc.
4. “CRUDE & BRENT OIL BREAK DOWN LOWER“
– Brent & Crude already slump down 8-10% today.
– History will repeat previous 2 months ago.
– Signal very clear phase II just started.
– Frankly in my view, I still no confidence in Oils performance yet. There still no good news or cover news from OPEC. Even Trump and Putin still play Joker Card.
5. “DOW JONES INDEX“
– I am predicting Dow Jones will slump and break down badly again amid Phase II Covid-19 hit badly America Latin. Second wave fears spark global share sell-off. Index will be around 20,000 – 22,000 from current now stand at 25,700
– More manipulation / speech from Mr. T will make their more worst because to satisfy their-self agenda.
– Incidence of violence and inhumanity against blacks in their country already facing very big issue.
– The number of U.S. coronavirus infections passed the two million mark and over 112,000 Americans have died.-
6. “MY REAL TARGET STILL REMAINED – MY PRIORITY BIG-2 (HARTA)“
Target Price : [ TP5: RM18 – TP6 RM23 ]
Last target : RM30 (Mac-2021 – Last target depend on COVID-19 situation)
Call Warrant : HARTA-C39 [ TP: RM2.05 ]
STOCK 1 : TOP GLOVE CORPORATION BERHAD
Current Price : RM16.70
Target Price : [ TP5: RM25 – TP6 RM30 ]Last target : RM35 (Mac-2021 – Last target depend on COVID-19 situation)
STOCK 2 : HARTALEGA HOLDINGS BERHAD
Current Price : RM12.44
Target Price : [ TP5: RM18 – TP6 RM23 ]Last target : RM30 (Mac-2021 – Last target depend on COVID-19 situation)
STOCK 3 : KOSSAN RUBBER INDUSTRIES BERHAD
Current Price : RM9.10
Target Price : [ TP5: RM12 – TP6 RM18 ]Last target : RM25 (Mac-2021 – Last target depend on COVID-19 situation)
STOCK 4 : SUPERMAX CORPORATION BERHAD
Current Price : RM8.25
Target Price : [ TP5: RM12 – TP6 RM15 ]Last target : RM23 (Mac-2021 – Last target depend on COVID-19 situation)
* All target prices has been revised from 1.50 – 1.60 Buycall.( Old Target )* My previous blogs : 01. Supermx Kim0102. Supermx Kim0203. Supermx Kim0304. Supermx Kim0405. Supermx Kim0506. Supermx Kim0607. Supermx Kim0708. Supermx Kim08
WHAT A KEY POTENTIAL FOR DOWNSIDE RISKS? AND WHEN YOU SHOULD WORRIES YOUR HOLDINGS?
1. Implementation of wind fall tax by the government2. A successful development of vaccine and must official announcement by WHO3. A sharp decline in global daily covid-19 cases
Good luck and stay tuned! #staysafe #stayhome
“Only the rubber sectors will have a big jump and bright prospect for now!”
The Founder Of Kim’s Stockwatch
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