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Expected QR is RM 1.8 billion. Told you guys to buy Supermax. Only fools and KYY old fool think Supermax is rubbish stock. Count money untill finger broken also haven't count finish. Hire 10000 bangla to count also cannot count finish. Each bangla steal RM 1000 also not worth 5 percent of its net profit. Sell all your glove stocks and only buy Supermax now. Supermax largest increase in production PLUS superior super high profit margin OBM/ODM model. Buy buy buy. CHUPER DUPER LOOPER MAX
Buy SUPERMAX. Supermax will have higher capacity than Kossan by 2023 and premium pricing due to own brand. Supermax's post pandemic profit will be 2 times higher than Kossan.
Most expect Supermax to make 1.8 billion. This supernormal profit is almost double Kossan likely due to superior OBM and ability to lock in at spot price. This means for one whole year, Supermax is likely to make double Kossan net profit and current premium over Supermax has not fully factor in this development yet.
Supermax Corp Bhd could potentially benefit from the US government's plan to increase local production of personal protective equipment (PPE) including surgical gloves.
The US government recently said it plans to use the Defence Production Act (DPA) to produce 12 billion gloves per annum by the end of 2021 to reduce its reliance on imported PPE.
Biden wanna help india - "We are sending immediately a whole series of help that he needs, including providing for those Remdesivir and other drugs that are able to deal with this,"
The author thinks glove will be part of it, so where Biden will source for glove?
US government is a bit slow in term of PPE n hand gloves ; the West looked down at low margin products since 30 years ago or even longer time , they let Asian companies/ manufacturers to produce many low margin products but the epidemic turned pandemic made them realised they can’t rely on China n Asia to max level ; unless the US government impose import tax to gloves, if not , USD500 mil to build a big plant with much higher production cost , not good news ( shouldn’t give view at Supermax counter ) :)
- Setting up new plant in US definitely is not a risk free decision.
- Higher risk higher return.
- I believe risk assessment was done by professionals.
- If it fails, I lose 10% (I don't own the company).
Agreed. Supermax is a fantastic company with excellent track record in navigating the North American market. They understand it deeply. Their advantage is OBM and ODM experience which enables them to sell American glove brand at a premium. This plus subsidies from the US government will more than cover any cost increase, giving Supermax the best profit margin in USA vs other companies. I believe companies like Kimberly Clark are willing to pay hefty premium for American ESG proven gloves.
Don't forget import duties may be imposed to make Supermax more competitive, on top of premium pricing. Whatever is it, the American government will guarantee the profitability of American glove companies because their continued operations is a key national security factor. Hosting a manufacturing centre in a target market will definitely give it much more edge against its competitors. I expect Supermax to conquer the US market and other glove makers to lose valuable market share.
Affected companies will be those who have large exposure to the US market including Kossan and Harta. But I believe the impact will be minimal to Harta given its strong product reputation in the American market and most excellent operational efficiency. Kossan will have major room for improvement to defend its market share, considering that China glove companies are also competing for North America market share. Topglove on the other hand have very diverse customer base, so impact is minimal
I am more worried for Kossan. Because losing market share in USA is devastating to any glove maker. It has the weakest strategy and most disadvantaged compared to other glove makers.
