Rubber Glove Sector, Promising Investment

Why should we invest in rubber glove sector;

1.       Rubber glove products are inelastic demand - recession proof industry.

2.       Any increase in production cost can be passed to customer, earnings will not be affected

3.       Strong world demand as its usage is mandatory in medical sector.

4.       Companies in rubber glove sector never failed to pay dividend to shareholders

5.       Rubber gloves stock considered as income, defensive and growth stock

·         Income stock – stock which always manage to pay good dividend

·         Defensive stock – stock which not badly affected by economic circle especially when the economic crash.

·         Growth stock – EPS growing in tandem with the company and economic performance, thus, the price will go up.

AmResearch recommend to buy Kossan and Top Glove which their target price are RM4.90 and RM6.70 respectively.

 

- Sabri Jalil