,The share prices of top glove makers Kossan Rubber Industries Bhd, Hartalega Holdings Bhd, Supermax Corp Bhd and Top Glove Corp Bhd fell to fresh lows yesterday, following dizzying spikes in 2020. At 5pm, Top Glove, now a penny stock, closed 3.5 sen or 3.47% lower to 98 sen with a market capitalisation of RM8bil.皇冠信用网（www.hg108.vip）是一个开放皇冠信用网即时比分、皇冠信用网开户的平台。皇冠信用网平台（www.hg108.vip）提供最新皇冠信用网登录，皇冠信用网APP下载包含新皇冠体育代理、会员APP，提供皇冠信用网代理开户、皇冠信用网会员开户业务。
KUALA LUMPUR: Glove stocks will continue to face selling pressure in the near term due to “negative fundamental factors” in the sector, according to fund managers and equity *** ysts.
The share prices of top glove makers Kossan Rubber Industries Bhd, Hartalega Holdings Bhd, Supermax Corp Bhd and Top Glove Corp Bhd fell to fresh lows yesterday, following dizzying spikes in 2020.
At 5pm, Top Glove, now a penny stock, closed 3.5 sen or 3.47% lower to 98 sen with a market capitalisation of RM8bil.
Tradeview Capital chief investment officer Nixon Wong pointed out that the glove sector is facing a “perfect storm” of intensifying competition among producers, reduced glove demand, high inventory levels on the buyers’ side, excess capacity on the sellers’ side, rising production costs, shortage of labour and thin margins.
Wong said with the reopening of international borders and the current excess glove capacity, there is less urgency for glove procurement by distributors and hospitals.
“Buyers also have high inventory levels due to stocking up on gloves in 2020 and 2021 and aggressive buying out of fear previously,” he said.
Wong noted that the increased glove production capacity from not only the existing producers but also some new glove making entrants in Malaysia, as well as major producers in China like Intco Medical, had resulted in lower average selling prices (ASPs) and thus, thinning profit margins.
“Rising material costs have also contributed to compressed margins,” he said, adding that he sees glove stocks continuing to face downward pressure in the next “two or three quarters”.
“Valuations (for glove stocks) have been suppressed, given the deteriorating fundamentals, which could remain under pressure, especially in a high inflation environment as well as the negative earnings outlook on glove makers’ margins,” added Wong.
Rakuten Trade head of equity sales Vincent Lau said while news of the US Federal Reserve hiking its benchmark interest rate by 0.75 percentage points might have affected sentiment, the outlook for the earnings of glove makers is not attractive.usdt收款平台声明:该文看法仅代表作者自己，与本平台无关。转载请注明：皇冠信用网（www.hg108.vip）_Selling pressure to continue for glove stocks