A picture is worth a thousand words, as u can see from the picture above that Comfort Gloves Berhad is SOLELY specialise in Examination Gloves. During the tough time like this, I believe the shortage of gloves is mainly Examination Gloves due to the nature of Covid-19, of which we have to protect ourselve especially the frontliner from the virus. If you are familiar with gloves you might know that demand for Examination Gloves is way above the Surgical Gloves, Sterile Gloves and so on. Other than that, price of Nitrile Examination Gloves might not be as high as Surgical Gloves, Sterile Gloves, and etc so I am quite firm that Comfort Gloves is able to ride on the "Surge of Demand of Examination Glove" Train!
2. KYY effect, as u can see KYY already admitted that he lost 90% of his capital in Dayang. He already hinted last week in his Gloves Post, so I think he is coming back stronger by Riding either on Rubberex or Comfort. Anyway, just my guess....
3. By quoting Tan Sri Lim Wee Chai from this post https://asia.nikkei.com/Business/Markets/Nikkei-Markets/World-s-largest-glove-maker-Top-Glove-expects-40-profit-surge
"Average sale price is expected to rise between 3.5% and 5% in April-to-June period. While raw material prices remain low, Chairman Lim Wee Chai said at a post-earnings briefing."
"The company expects to sell 15.80 billion gloves in the third quarter with sales of nitrile gloves likely to jump 20%"
Lets come out with a simple calculation, by using latest quarter net profit 10million x (123% for factor in the 20% surge of sales and also increase of sales price of nitrile glove between 3.5% to 5%) so we came out with a net profit of 12.3m which is equivalent to 2.14 cents earning per share, x 4 quarter = 8.4 cents. So by dividing the share price over the EPS, we have a PE of just 13!!!!!!!!!!!!! Imagine if market rerate it to 20PE....
8.4 x 20 = RM1.68....
So i am very firm that Comfort Gloves Bhd might have more room to go....what about you??
just my dumb investment thesis...that works for me over the years....
https://klse.i3investor.com/blogs/valueseek/2020-04-16-story-h1506012669-WHY_COMFORT_GLOVES_BHD_IS_THE_BIGGEST_BENEFICIARY_FROM_COVID_19.jsp
