Most of research houses are bullish on rubber glove sector as global demand is increasing from 8-10 percent.
TopGlove has recently announced to acquire some companies in this region as part of expansion program.
Latexx will have JV with Ducth company to operate plant and distribute product for Europe market. They will produce protein-free glove for medical usage.
Kossan will increase their output by 20%.
Due to rising demand all over the world, share price of glove companies were increasing and the target price as reported below;
Company Target price Current price
Harta 11.24 7.34
Latexx 5.44 4.84
Supermax 7.96 6.09
TopGlove 15.9 11.76
We optimistic that, while the price moving to achive the target, the profit taking will take place thus will temporarily push down the price. Investor can take this opportunity to buy and sell when rebound if you can’t wait the price to meet the target.
