Top Glove shares up on company’s capacity expansion news | Malay Mail

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Top Glove shares up on company’s capacity expansion news

Shares of Top Glove Corporation were higher on news the biggest nitrile glove producer is expanding capacity. — Malay Mail pic

KUALA LUMPUR, June 19 — Shares of Top Glove Corporation were higher on news the biggest nitrile glove producer is expanding capacity to produce between 25 billion and 30 billion gloves annually.“We continue to like Top Glove for its expansionary plans, focus and continual efforts at improving quality and operational efficiency, alongside its position as the largest rubber glove manufacturer,” it added.

The research house said Top Glove would be able to revive its margins in the fourth quarter financial year 2019 to the 16 per cent level, as the company had hiked the selling price of its natural rubber gloves, to match raw material price movement. However, it noted the company would continue to face pressure on margins in calendar year 2019 due to the 13.1 per cent influx of nitrile glove supply by the top rubber producers, as well as from Thailand-based Sri Trang, with plans to increase latex glove supply to 30 billion pieces .At 11.45am, shares of Top Glove rose six sen to RM4.93 with 1.17 million shares transacted. — Bernama

 

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