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I am sad since I joined the agm a bit late, but it’s ok lah hahaha. I will share the input that I got from the AGM.
The company said thy have a very good prospects ahead:
1) The company said the surge of glove demand had increased the ASP, but the management doesn’t tell the exact amount increase of ASP. The management said that the selling price depends on the customer itself such as volume or the book order period.
2) The company told us that the acquisition of CGG is to capture a growing demand outside Brazil accelerated by pandemic. The CGG also had provided a better profit margin
3) The company wanted to increase its capacity by 9 new production lines by the end of 2020. The increase of production line will increase the production by 2.4 billion.
4) The management said the company didn’t take the long order book period and its customer basically focus more short term period like 3 months. But, if the customers wanted to make a contract with the company, then it will be a different story.
5) The company also said that the post JV with the Ansell will help them to boost the earnings in long term.
Q&A session
Q: What is your ASP?
A: The Company said they didn’t sign contract with anybody, and they don’t have the fixed selling price quarter on quarter. The price depends on raw material and demand.
Q: Will the company give dividend?
A: The company told us that maybe the company will declare a special dividend but it all depends in their financial performance.
Q: How about the orderbook of the company?
A: The company said it is a bit irrelevant to have order book, since most of the customers want to order the gloves like forever.
Q: What is the different price between the spot order and regular order?
A: The regular order price right now almost have the same price as spot order.
Q: Why the company have lower gross profit margin compare to the Big 4?
A: the company said that they are on the expansion level, that’s why the gross profit margin is at the lowest compare to the Big 4. But, after the completion of new production lines, the company will have a good margin.
Last but not least, a wise word from Mr Lim, CEO of Careplus “No matter whether you are a small or big, just do your job well and you will excel”.
