Sharing from remisier.

Glove back?

$HARTA / 5168 (HARTALEGA HOLDINGS BERHAD) $KOSSAN / 7153 (KOSSAN RUBBER INDUSTRIES BERHAD) $TOPGLOV / 7113 (TOP GLOVE CORPORATION BHD)

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*Gloves Sector Flash Update 🧤

- *Thailand’s 🇹🇭 Public Health Ministry* has warned that the incidence of influenza is spreading rapidly, with four provinces in the northeast region the hardest hit.

- *There has been a big jump in infections in February.* According to the Thai health ministry, 7,819 cases of influenza were reported in Jan, but by 15th Feb, total infections this year had leapt to 99,057, with nine fatalities. The ministry also said that *H1N1🦠 is the main virus strain* active in Thailand at present.

- *These concerns😷* on raising influenza cases are again *lifting sector sentiment,* despite unlikely to evolve into a COVID-19 like pandemic.

- *Coupled with confluence of catalysts🌟* such as: *i)* US’ higher tariffs on China gloves; *ii)* improving earnings and operating matrixes; and *iii)* lack of visible thematic catalysts across other sectors, we *do not rule out possibilities* of Malaysian gloves sector *re-rating back to +1SD above mean valuations range.*

- *We are still maintaining our valuation methodology and TP for now, pending further monitoring ⚖️.* Our current TPs: Kossan (RM2.24/TP:RM2.65); Harta (RM3.31/TP:RM3.66); and Top Glove (RM1.20/TP:RM1.31) are *based on +0.5SD above mean on 2025F PE* and may re-rate to +1SD if such sentiment continues to build up.

- *Expect slight positive share price movement📈* across domestic gloves name, but should still *trade range-bound towards our +0.5SD valuations range* unless participation of strong fund flows.

- Harta will also be releasing its 3QFY25 results today.