Koon Yew Yin 6 Aug 2020
These 2 photos were taken during Top Glove’s previous meeting. One of my oldest friends and college mate Sekaraja Sekaran was sitting on the extreme right of the lower photo. More than 10 years ago, he asked me to buy some Top Glove shares. He must be very rich by now.
Top Glove EGM on 18 Aug 2020 is to seek shareholders’ approval for the issue of 2 bonus shares for every 1 share held by shareholders. I will not attend the EGM because I believe no shareholder will vote against the bonus issue proposal.
All shareholders already knew Top Glove’s 3rdquarter result ending in May. The most important and relevant question is how much more profit will be in the 4th quarter ending August.
Most important question:
I hope one of the attendees will ask what was the ASP, average selling price of gloves in June, July and August.
At the recent Comfort Glove AGM, the CEO said that he could increase his ASP by 5-10% every month depending on the type of customers. He would sell cheaper to his long-term customers and at higher prices for irregular customers. Due to Covid 19 pandemic, the demand far exceeds supply and he could easily increase his selling prices.
However, in the case of Top Glove, I have assumed that Top Glove could increase 10% of its ASP on month to month to calculate its 4th quarter profit which will be about 5 times its 3rd quarter profit. I have posted my article namely “Top Glove’s 4th Q profit is 5 times its3rd Q profit” on i3investor.com and also on my blog: koonyewyin.com.
If Top Glove could increase its ASP by 10% month to month, its 4th quarter profit will be 5 times its 3rd quarter profit.