Recent status of Malaysia's top 5 listed glove stocks (highlights)
Although the five glove companies are mainly based in Malaysia, Riverstone chose to go public in Singapore, and TOPGLOV is also listed bilaterally in Singapore. I'm looking forward to the launch of Moo Moo's horse stock database in the future, so horse stock friends will be blessed.
Returning to the theme, after two consecutive years of decline (2021 & 2022), glove stocks blew the trumpet of counterattack in March of this year. The stock price soared until May, after which there was a two-month correction. As of today, July 12, only HARTA, Kossan, and Riverstone stock prices have risen 📈 from Year to Date.
The two glove stocks that fell this year were TOPGLOV and SUPERMX, which were the most aggressive starting with Glove 🧤 ASP in 2020. As a result, after the ebb, their path to profit recovery also became more bumpy. It is not ruled out that some customers and distributors will be inadvertently offended by the aggressive starting price. As a result, SUPERMX at this stage has dropped by more than 50% compared to before the pandemic, which is the deepest comparison of the five companies' turnover before the pandemic.
Since RIVERSTONE is not listed in Malaysia, the level of attention will be relatively low. However, as of 2023Q1, RIVERSTONE is temporarily the most profitable glove company in the world, earning RM46.7 mils in Q1, which is better than RM42 mils last quarter. Mainly because the company specializes in Clean Room gloves 🧤 in the Niche Market. The main customers are from the technology and automotive fields, so demand is stable. If I get a chance, I'll talk to you about RIVERSTONE in detail, and this company is really worth watching.
I observed the strategy of China's Yingke, which was to fight a simple and crude price war, so TOPGLOV, which won by volume, was greatly affected. On the other hand, the QOQ increase in HARTA's turnover in Q1 is mainly because HARTA's Ding Qing gloves are number one in the industry, and it is difficult for Chinese quality to shake HARTA's customers.
The world is still in the second half of inventory. Some distributors have already begun placing orders, but they are all loose orders. The volume is relatively small and unstable. Glove sales increased month-on-month in February and March of this year. They suddenly fell to a 4-year low in April, then rebounded slightly in May. Overall gloves sales in Q2 are expected to drop slightly or remain the same compared to Q1.
The biggest temporary stock price increases this year were HARTA and KOSSAN, mainly due to strong cash and no excessive expansion before. RIVERSTONE's situation is similar.
It is difficult for stock prices in the gloves sector to fall back to their previous bottom, but sales and demand will still fluctuate quite a bit. China's Yingke had the highest turnover in 2023Q1. The three glove companies that made money were RIVERSTONE, HARTA (after deducting Gains), and Thailand's Sri Trang Glove.
Everyone must be curious, why have gloves stocks pulled back so much since May? Mainly because the market expectations from March to May were too high for rivals, and the stock price was like Mad Bull. HARTA once rose 60% this year, making it the top 3 Malaysian stocks with gains of RM1 or more. However, the export data for April and May did not match the increase in stock prices at all, so stock prices also cooled rapidly.
Consolidation is likely to continue in the second half of the year. After all, there was also a slight increase in stock prices this year. In the medium term, the moderators are still quite optimistic about HARTA and KOSSAN. Of course, RIVERSTONE, which is listed in Singapore, should also pay attention.
The results of many glove companies will be released one after another next month, which I believe will give investors more guidance. We'll share it when we get a chance. Mutual encouragement.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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投资座右铭：价值为主，技术为辅，心态之上
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