Is it market over react on glove industry already? part 2

Lets take a look at the latest two quarter EPS of Topglove, 11.42 and 10.44
Based on yesterday closing price RM 5.30 which convert to PE 11.6 and PE 12.69

How about supermx? lastest two quarter EPS were 15.18 and 13.51
Yesterday closed price was RM 4.04, which convert to PE 6.65 and PE 7.46

Harta lastest two quarter EPS were 12.18 and 11.42
Yesterday closed price was RM 4.35, which gives PE 8.93 and PE 9.52

Kossan latest two quarter EPS were 9.49 and 9.38 (not much different)
Yesterday closed price was RM 3.01, which gives PE around 8.

From the above, we notice that earning is dropping but the revenue is still increasing, what can this tell us? It means the demand is still there but the cost of production is increasing.

Cost of sales increase is due to strong ringgit and material cost. Now, we have to see how the management can do on the increasing cost. Can they pass on to their customer? I think it is hardly because from the financial statement past record, they are unable to pass on the cost to client, it is because they are in a competitive environment and there is no royal brand for glove.

If you go and look back topglove financial statement from year 2001 to 2008, their gross profit margin was decreasing every year from 25.2% to 16.5%. So very obviously, they hard to pass the cost to their client. I wonder why the market analyst keep on saying the glove maker can pass on the cost to client, it is nonsense. They want you to buy the stock to push up the price, I think this is the only reason why they want to do so.

I will discuss further again later on, is the glove stock worth to invest?