A worker at a production line in Top Glove factory in Shah Alam August 26, 2020. — Reuters pic
“We believe that the long-term ASP should be at the breakeven level at which inefficient new entrants should be operating. We expect earnings to see a significant jump in FY 2021 but decline in FY 2022 and FY 2023. Earnings growth should resume from FY 2024 due to volume growth with flat ASP,” he said in a research note today.
In making the announcement yesterday, Top Glove said FY2020’s financial results were “an unsurpassed performance in a year like no other, with more upside in glove demand expected,” adding that the group is also looking forward to fresh highs in FY2021. The discount between natural rubber gloves and nitrile gloves are expected to narrow going forward should more customers choose to buy natural rubber gloves.
It said high cash level bodes well for expansion plan and brings down financial costs. The company has utilised the deposits from orders to fully pay off its syndicated loans amounting to RM654 million. It has also converted 87 per cent of its convertible bonds of RM710 million to ordinary shares.
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: theSundaily - 🏆 25. / 51 Read more »
Source: staronline - 🏆 4. / 75 Read more »