DIPPED PRODUCTS PLC (DIPD.N0000)

judecroos wrote:World’s Largest Rubber Glove Maker Sees 1,646% Quarterly Profit Surge


Mike Hockett Oct 01, 2020


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Malaysia-based Top Glove Corporation — the world’s largest producer of disposable rubber gloves — reported its fourth-quarter and full-year financial results on September 17, showing that the COVID-19 pandemic has been a windfall for the company.

Top Glove, which is headquartered in Kuala Lumpur and Singapore, [url=https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/Quarterly report/Top Glove_4QFY2020_Financial Results.pdf]reported[/url] a record quarterly profit of RM1.29 billion, or $310 million, for the three-month period that ended August 31, colossally dwarfing the RM74.2 million ($18 million) it had a year earlier. The quarterly profit skyrocketed 1,646%.

The profit surge came as fourth-quarter sales revenue hit RM3.11 billion ($750 million), up 161% year-over-year.

For the full-year, Top Glove’s 2020 total sales of RM7.24 billion ($1.75 billion) soared 50.7% from 2019, while total profit of RM1.87 billion ($450 million) jumped 417%.

[url=https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/Quarterly report/TopGlove_4QFY2020_Press Release.pdf]Top Glove noted[/url] that the tremendous growth was powered by a global surge in demand for gloves amid the pandemic, with demand growth especially strong in Asia, Western Europe, and Eastern Europe. By product category, the largest Q4 growth was in demand for nitrile gloves at 31% year-over-year, with natural rubber examination gloves up 7%.

The company also attributed some of the profit spike to its productivity enhancements that are ongoing, including utilization levels that held close to 100% amplified production efficiency. Top Glove said the company “reaped superior economies of scale,” while the high utilization helped it lower overhead significantly, especially in the cost of labor and natural gas.

Image Credit: rawf8 / Shutterstock.com
you can imagine DIPD profit for quarter

DKbogols wrote:Yes it seems like profit taking at these price levels. Understandable given the recent rapid increase in prices. Lot of buying/collection also happening to keep the prices at 330/- levels. Later today or next week we can start the next journey towards 400+

ONTHEMONEY wrote:

Win Win wrote:

DKbogols wrote:Lot of people forget that 40% of DIPD’s income comes from plantations. Not just a PPE manufacturer. I am expecting a super Q2 as a result of both PPE performance and plantations. Fundamentally DIPD is very strong and much more room to grow in terms of PE multiples - especially considering exceptional Q2 results expected soon. In a typical investment we expect min. 30% return in 1 year, but with DIPD this can be achieved in a month!

That is why I have been highlighting DIPD from May 20.

DIPD will give the Super Performance. Now, they provided 5% of World Glove (HH & IG) demand. Now, they are ready to go above recent expansions and price gains.

DIPD should increase by rallies like EXPO and remain above Rs.400. In addition to the Capital Gain, DIPD will give a reasonable dividend in next 2 quarters. Until releasing Q2, it will gradually reach Rs.270 & Rs.300. With Q2 release, I expect a journey to Rs.400.

Again post following note for every one progress !! Keep adequate quantity in your portfolio, bcz this is a real good value share with expecting 60% capital gain from current price. Really Worth !!

DIPD has a wonderful time with their expansions done in last year as well as spanning of more than 70 countries. Think world glove demand has increased by 600% and no sign to end of covid. Most of coutris locked down the operation in Mar to May 20 and started most of businesses from June 20, Then, again Glove demand as a PPE has been multiplied by few times in addition to 600%. Also, DIPD recorded massive increase in profit in Q1 with 2 months lock-down. DIPD has very strong investments such as TPL & KVAL. They are performing well and TEA market is very good one these days. Also, new market places are opened for Gloves & TEA day by day in addition to extra demand on existing market. That will be the reason, DIPD directors bought DIPD share bulks at Rs.187-200 range. They know the real value of this share.
Considering all these factors, DIPD Q2 must be very impressive and a clear picture. When calculated the expected EPS, it should be more than Rs.24 in Q2. Annualized EPS should reflect as Rs.90 +. Based on this annualized PE, DIPD PE is only 2.44 at current market price. Sector PE is 14.6. If adjust DIPD price to Sector PE, Price would be > Rs.1,300. But, will not adjust DIPD price to sector PE. But, it should raise and keep above Rs.400 when compare to other companies specially Manufacturing sector. 
Do your own analysis and make this valuable investment.
My view is DIPD share is the share should go up as EXPO !!
Less Risk + Mass Capital Gains

Hi Winwin,


Thanks for recognizing this share well ahead. I see strong upside potential for DIPD by looking at the MACRO fundamentals correlating earnings to grow more than 500% expected for the FY 2020/21.

DIPD is a RARE GOLD MINE in CSE now. If you look at How EXPO rallied based on earnings growth, DIPD share price at current levels is still showing MUCH STRONG POTENTIAL 

I would endorse Winwin's MARKET VALUE COMPUTATION together with following perspective.

EPS recorded for 1Q20 = Rs 10.19 
EPS expected for 2Q20 = Rs 20 
EPS expected for 3Q20 = Rs 20
EPS expected for 4Q20 = Rs 20

Annualized EPS = Rs 70.19

Market Value =Rs 699/- 
[Rs 70.19 x 9.97 Market PE as of 14.10.2020]

Materials Sector PE = 17.69 as of 14.10.2020

Note - I expect the 100% production capacity utilization doubled the EPS for remaining quarters as there was only 50% production due to lockdown. However, DIPD is not taking any NEW ORDERS for 2021 and the order book is full by now which suggests 100% GURANTEED CASH FLOW in upcoming quarters. This way I would feel the earnings would be more conservative.

I strongly feel DIPD to record above earnings for remaining quarters due to following;

1. Increased GLOVE Demand due to incremental growth In COVID cases with Winter Season on the corner in EUROPE 

2. NO NEW ORDERS are taken till 2022 and the cash flow for the financial year is secured well ahead. If you have any GLOVE ORDERS call and see.

3. Increased capacity expansion by launching TPR plant in Biyagama which has INCREASED production lines to 32 enabling the capacity manufacture 300 variants.

Source -  http://www.dailymirror.lk/40500/dipped-products-to-invest-in-new-glove-manufacturing-facility-in-biyagama-zone-



4. The company revenue contributed by Hand Protection and plantation. Both have increased significantly recording a growth beyond 100%.

Therefore, with this enormous amount sales with100% capacity utilization in all factories located in Thailand as well, DIPD is to deliver the ONE OF THE BEST FINANCIAL REPORTS in upcoming QUARTERS

If anyone is planning to sell, it will be your PRECIOUS ASSETS SELLING @ 50% BARGAIN price
 
Good Luck

ONTHEMONEY wrote:Hi all,

I see today is ideal for DIPD collection.

Many panic sellers are selling their best asset at cheap prices

Good Luck

judecroos wrote:

ONTHEMONEY wrote:Hi all,

I see today is ideal for DIPD collection.

Many panic sellers are selling their best asset at cheap prices

Good Luck

Ya I am on collecting side. thank you for the update.

ONTHEMONEY wrote:

judecroos wrote:

ONTHEMONEY wrote:Hi all,

I see today is ideal for DIPD collection.

Many panic sellers are selling their best asset at cheap prices

Good Luck

Ya I am on collecting side. thank you for the update.

Hi judecroos

Collect in Parcels at regular intervals.

Good Luck

Nigesh Pereira@CSE_watch wrote:There will be too many glove producers

Dhammika Perera / HAYL should sell DIPD now (or at least its Thailand glove factory) before it is too late.
Don't get carried away by buying DIPD.

Nigesh Pereira@CSE_watch wrote:There will be too many glove producers

In Malaysia (and Thailand, China ...) several companies are diversifying into glove manufacturing:
https://www.theedgemarkets.com/article/luster-hang-seng-latest-jump-rubber-glove-bandwagon
https://www.theedgemarkets.com/article/klci-pares-loss-mah-sing-new-darling-investors
Valuations for glove producers are sky-high in Malaysia and this attracts numerous newcomers to this sector. Everybody is flush with money and glove factories in Malaysia are expanding at a record pace.
This means that in some time, there will be an enormous glut in glove manufacturing. Glove making will be much less profitable than today. Once the market realizes this, stocks of glove producers will fall as fast as they have risen.
Dhammika Perera / HAYL should sell DIPD now (or at least its Thailand glove factory) before it is too late.
Don't get carried away by buying DIPD.

RJ1010 wrote:

Nigesh Pereira@CSE_watch wrote:There will be too many glove producers

Dhammika Perera / HAYL should sell DIPD now (or at least its Thailand glove factory) before it is too late.
Don't get carried away by buying DIPD.

I can imagine Dhammika Perera ROFLMAO if he ever sees your comment

Win Win wrote:

RJ1010 wrote:

Nigesh Pereira@CSE_watch wrote:There will be too many glove producers

Dhammika Perera / HAYL should sell DIPD now (or at least its Thailand glove factory) before it is too late.
Don't get carried away by buying DIPD.

I can imagine Dhammika Perera ROFLMAO if he ever sees your comment

Dear Nigesh

I don't know you man ......


Every one can not manufacture good gloves, because goves are not Pizzas. Those are are highly technical and few companies have patents also. These larger exporters have expert knowledge to produce wide range of gloves.
I can imagine your purpose to reduce demand for the highly valuable stock in the Market .. 
Don't do cheap things here.. We all here for investing as investors, not cheating as cheaters. You had chance to come early and say DIPD has massive demand in the world. See your number of posts for 2 years. Shame about you on trying cheating investors and their opportunities.


As per my view DIPD is the most valuable share at present situation. They have a great potential in wide range of glove manufacturing facilities and foot print across the world.. In other hand, they own KVPL & TPL plantations which are performing very well. All together DIPD can recodrd impressive Q2 and more and more impressive results in Q3 & Q4. These days, all glove manufacturers are facing a huge demand and they can not cater that demand with increasing prices, because whole world are demanding gloves as well as tea.


Try to point out good shares for other, then We all can get the benefit on investing valuable shares.


DIPD should pass Rs.500 in short term. Refer DIPD directors had collected massive quantities ike EXPO. But, DIPD has potential to pass EXPO price increased times with few competitive advantages.

Nigesh Pereira@CSE_watch wrote:There will be too many glove producers



Every one can not manufacture good gloves, because goves are not Pizzas..

Nigesh Pereira@CSE_watch wrote:There will be too many glove producers

In Malaysia (and Thailand, China ...) several companies are diversifying into glove manufacturing:
https://www.theedgemarkets.com/article/luster-hang-seng-latest-jump-rubber-glove-bandwagon
https://www.theedgemarkets.com/article/klci-pares-loss-mah-sing-new-darling-investors
Valuations for glove producers are sky-high in Malaysia and this attracts numerous newcomers to this sector. Everybody is flush with money and glove factories in Malaysia are expanding at a record pace.
This means that in some time, there will be an enormous glut in glove manufacturing. Glove making will be much less profitable than today. Once the market realizes this, stocks of glove producers will fall as fast as they have risen.
Dhammika Perera / HAYL should sell DIPD now (or at least its Thailand glove factory) before it is too late.
Don't get carried away by buying DIPD.

arun.cse wrote:

Nigesh Pereira@CSE_watch wrote:There will be too many glove producers

In Malaysia (and Thailand, China ...) several companies are diversifying into glove manufacturing:
https://www.theedgemarkets.com/article/luster-hang-seng-latest-jump-rubber-glove-bandwagon
https://www.theedgemarkets.com/article/klci-pares-loss-mah-sing-new-darling-investors
Valuations for glove producers are sky-high in Malaysia and this attracts numerous newcomers to this sector. Everybody is flush with money and glove factories in Malaysia are expanding at a record pace.
This means that in some time, there will be an enormous glut in glove manufacturing. Glove making will be much less profitable than today. Once the market realizes this, stocks of glove producers will fall as fast as they have risen.
Dhammika Perera / HAYL should sell DIPD now (or at least its Thailand glove factory) before it is too late.
Don't get carried away by buying DIPD.

It is very hard to stop laughing my ....side,,,,,,

Win Win wrote:

RJ1010 wrote:

Nigesh Pereira@CSE_watch wrote:There will be too many glove producers

Dhammika Perera / HAYL should sell DIPD now (or at least its Thailand glove factory) before it is too late.
Don't get carried away by buying DIPD.

I can imagine Dhammika Perera ROFLMAO if he ever sees your comment

Dear Nigesh

I don't know you man ......


Every one can not manufacture good gloves, because goves are not Pizzas. Those are are highly technical and few companies have patents also. These larger exporters have expert knowledge to produce wide range of gloves.
I can imagine your purpose to reduce demand for the highly valuable stock in the Market .. 
Don't do cheap things here.. We all here for investing as investors, not cheating as cheaters. You had chance to come early and say DIPD has massive demand in the world. See your number of posts for 2 years. Shame about you on trying cheating investors and their opportunities.


As per my view DIPD is the most valuable share at present situation. They have a great potential in wide range of glove manufacturing facilities and foot print across the world.. In other hand, they own KVPL & TPL plantations which are performing very well. All together DIPD can recodrd impressive Q2 and more and more impressive results in Q3 & Q4. These days, all glove manufacturers are facing a huge demand and they can not cater that demand with increasing prices, because whole world are demanding gloves as well as tea.


Try to point out good shares for other, then We all can get the benefit on investing valuable shares.


DIPD should pass Rs.500 in short term. Refer DIPD directors had collected massive quantities ike EXPO. But, DIPD has potential to pass EXPO price increased times with few competitive advantages.

Win Win wrote:

RJ1010 wrote:

Nigesh Pereira@CSE_watch wrote:There will be too many glove producers

Dhammika Perera / HAYL should sell DIPD now (or at least its Thailand glove factory) before it is too late.
Don't get carried away by buying DIPD.

I can imagine Dhammika Perera ROFLMAO if he ever sees your comment

Dear Nigesh

I don't know you man ......


Every one can not manufacture good gloves, because goves are not Pizzas. Those are are highly technical and few companies have patents also. These larger exporters have expert knowledge to produce wide range of gloves.
I can imagine your purpose to reduce demand for the highly valuable stock in the Market .. 
Don't do cheap things here.. We all here for investing as investors, not cheating as cheaters. You had chance to come early and say DIPD has massive demand in the world. See your number of posts for 2 years. Shame about you on trying cheating investors and their opportunities.


As per my view DIPD is the most valuable share at present situation. They have a great potential in wide range of glove manufacturing facilities and foot print across the world.. In other hand, they own KVPL & TPL plantations which are performing very well. All together DIPD can recodrd impressive Q2 and more and more impressive results in Q3 & Q4. These days, all glove manufacturers are facing a huge demand and they can not cater that demand with increasing prices, because whole world are demanding gloves as well as tea.


Try to point out good shares for other, then We all can get the benefit on investing valuable shares.


DIPD should pass Rs.500 in short term. Refer DIPD directors had collected massive quantities ike EXPO. But, DIPD has potential to pass EXPO price increased times with few competitive advantages.

Equityinvestor wrote:

Nigesh Pereira@CSE_watch wrote:There will be too many glove producers

In Malaysia (and Thailand, China ...) several companies are diversifying into glove manufacturing:
https://www.theedgemarkets.com/article/luster-hang-seng-latest-jump-rubber-glove-bandwagon
https://www.theedgemarkets.com/article/klci-pares-loss-mah-sing-new-darling-investors
Valuations for glove producers are sky-high in Malaysia and this attracts numerous newcomers to this sector. Everybody is flush with money and glove factories in Malaysia are expanding at a record pace.
This means that in some time, there will be an enormous glut in glove manufacturing. Glove making will be much less profitable than today. Once the market realizes this, stocks of glove producers will fall as fast as they have risen.
Dhammika Perera / HAYL should sell DIPD now (or at least its Thailand glove factory) before it is too late.
Don't get carried away by buying DIPD.

Mr Perera needs to buy some dipd.

Wonderer wrote:Would the below news positively impact DIPD in the long run?

[size=33]Malaysian rubber gloves added to US list of goods produced by forced labour[/size]

KUALA LUMPUR, REUTERS: Rubber gloves manufactured in Malaysia are among six items the US Department of Labour (DOL) has added to a list of goods produced by forced labour this year, the department said in a report.......


Reference: DailyFT
ft dot lk/business/Malaysian-rubber-gloves-added-to-US-list-of-goods-produced-by-forced-labour/34-707700