Author Topic: TOPGLOVE (7113)  (Read 319 times)

Offline Teosh

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TOPGLOVE (7113)
« on: July 07, 2020, 09:17:25 AM »
https://www.theedgemarkets.com/article/top-glove-kossan-supermax-and-hartalega-scale-new-heights-anticipation-even-greater-demand

Top Glove, Kossan, Supermax and Hartalega scale new heights on anticipation of even greater demand for rubber gloves
Arjuna Chandran Shankar/theedgemarkets.com
July 06, 2020 10:56 am +08

UALA LUMPUR (July 6): Shares in Top Glove Corp Bhd, Hartalega Holdings Bhd, Kossan Rubber Industries Bhd and Supermax Corp Bhd reached new all-time highs today, buoyed by sustained demand for rubber gloves.

As of 10.07am, Top Glove was the local stock exchange’s top gainer, rising by 7.04% or RM1.30 higher to RM19.76 per share, valuing the company at some RM53.19 billion. It saw some 7.32 million shares transacted.

Meanwhile, Hartalega shares were up 4.88% or 78 sen to RM16.78, valuing the stock at some RM56.85 billion. In total, it saw some 4.05 million shares change hands.

Supermax shares were up by 6.48% or 61 sen at RM10.02 apiece, valuing the counter at some RM13.63 billion. It was a new all-time high. In total, it saw some 15.45 million shares traded.

Supermax was the fourth highest gainer on Bursa Malaysia, followed by the Supermax-C83 warrants as the fifth top gainer, gaining 6.82% or 35 sen to RM5.48.

Kossan was also on the list of top gainers as well. The counter rose by 4.29% or 40 sen apiece to RM9.72, also a new record high. It was now valued at RM12.43 billion.

Demand for rubber gloves is only expected to grow as the Covid-19 pandemic shows no signs of abating.

In a note today on rubber products, Hong Leong Investment Bank said that it was not ruling out the possibility of hastier capacity expansion by Malaysian glove manufacturers in order to fulfil increasing demand as well as to remain competitive.

“China's glove makers are aggressive with their expansion plans (about an additional 100 billion pieces by 2023). However, we feel it will not affect Malaysian glove makers in the near future, with only about 35 billion pieces by 2021 and stronger confidence in Malaysian glove production quality,” it said.

The research house added that it remained bullish on gloves for the second half of the year (2H20) given increasing demand for rubber gloves and that average selling prices (ASPs) are expected to continue rising until 1H21.

It noted that rubber glove ASPs had increased in tandem with higher utilisation rates. Since the beginning of the outbreak, ASPs have increased by about 10%. Spot order ASPs currently average at two to four times and now account for 15% to 20% of total capacity from 5% previously.
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Offline Teosh

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Re: TOPGLOVE (7113)
« Reply #1 on: July 07, 2020, 09:19:00 AM »
https://asia.nikkei.com/Business/Companies/Top-Glove-makes-automation-push-amid-pandemic-labor-shortage

Top Glove makes automation push amid pandemic labor shortage

TAKASHI NAKANO, Nikkei staff writer
July 2, 2020 11:53 JST

SINGAPORE -- Malaysia-based Top Glove, the world's leading producer of rubber surgical gloves, will invest 3 billion ringgit ($700 million) to modernize its production facilities in a bid to reduce the dependency on migrant workers.

Top Glove workers churn out 16,000 gloves per capita each day. But the company is having trouble keeping up with demand even at full capacity. The lead time on deliveries on synthetic nitrile rubber gloves is now stretched to 420 days.

"Intensifying automation and digitalization across every aspect of our operations remains a top business priority," Top Glove founder and Chairman Lim Wee Chai told Nikkei. "We have invested in advanced technology and projects incorporating artificial intelligence and robotic process automation."

The 3 billion ringgit will be used to add 450 new production lines through 2026. Annual output capacity will be lifted nearly 80% to 140 billion gloves, up from 78.7 billion units.

Artificial Intelligence will be used for quality control to reduce the volume of defective products and boost production efficiency. AI-equipped cameras will also analyze activities of laborers to improve workplace safety and security.

Top Glove, which exports to 195 countries, commands a global market share of 26%. The company has seen demand grow sharply amid the coronavirus pandemic.

Orders from China and Brazil have approximately quadrupled compared with before the pandemic, while orders to the U.S. swelled 150%.

The skyrocketing demand helped Top Glove earn a net profit 575 million ringgit for three quarters through May, breaking previous all-time highs for the full year.

But the COVID-19 pandemic has also brought problems associated with foreign migrant workers into sharp relief. Because of travel restrictions, companies are unable to bring in more migrant workers to help ramp up production.

"No employment of foreign workers is allowed until year-end," said Malaysia's Human Resources Minister M. Saravanan, sparking concerns of a drawn-out labor shortage.

Out of 13,000 factory workers hired by Top Glove, 11,000 are foreign nationals. The company's treatment of its workers has been subject to withering scrutiny as of late.

At the dormitories housing migrant workers, 24 people share the same room, one laborer said in a June expose by the British broadcaster Channel 4.

"We have to share the bathrooms with everyone in the bloc," said the man. "I am scared that I will get infected with the virus."

Top Glove immediately rejected the claims as "highly inaccurate." The company says it has rolled out social distancing and other measures to prevent the spread of disease.

The company also maintains that its workers' take-home pay exceeds 1,600 ringgit a month, higher than the 1,200 ringgit minimum wage. But the pay still pales in comparison to Malaysia's overall average monthly wage of roughly 3,000 ringgit.

With the inclusion of Hartalega Holdings and other Top Glove rivals, Malaysia's share in the global rubber glove market approaches 70%. This contingent derives its competitive advantage in the ability to procure rubber domestically or in nearby countries, as well as in the cheap labor costs.

The shift away from manual labor has become a cross-industry issue in Malaysia. Companies that adopt high technology make up only 37% of manufacturers, and no more than 20% of the service sector, according to the Shared Prosperity Vision 2030, a document released last year by the government under former Prime Minister Mahathir Mohamad.
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Offline Teosh

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Re: TOPGLOVE (7113)
« Reply #2 on: July 07, 2020, 04:23:05 PM »
RHB Research maintains 'buy' call with higher TP for Top Glove  :o :o

Bernama/Bernama
July 07, 2020 12:14 pm +08

KUALA LUMPUR (July 7): RHB Investment Bank Bhd Research (RHB Research) has maintained its "buy" call for Top Glove Corp Bhd with a higher target price (TP) of RM24.80 a share premised on increasing demand and a tight inventory level.

In a research note today, the research house said it raised its earnings estimates and TP due to higher average selling prices (ASPs).

"This premium is justified due to Top Glove’s status as the world’s biggest glove producer and its ability to raise ASPs more than its peers.

"We expect glove demand to surge in the US. Demand should continue to rise throughout the third quarter this year as Covid-19 is still spreading," it said.

In 2019, the US consumed an estimated 92.7 billion pieces of gloves per annum — equivalent to 35% of global demand — making it the world's biggest glove consumer.

RHB Research said glove inventory was estimated to be extremely low at 11 billion pieces or less than half a month’s supply.

It said the increase in ASP assumptions was based on a shortage of certain raw materials used to manufacture gloves, which had capped near-term supply.

"We increased our financial year 2020 to 2022 ASP assumptions by 1% to 4% and earnings forecasts by 4% to 18%," it said.

For the fourth quarter this year, core earnings should also show a significant improvement quarter-on-quarter as ASPs are on an increasing trend, it said.

RHB Research added that post Covid-19, Top Glove’s earnings growth outlook remains positive as glove demand is expected to continue its uptrend of an 8% to 10% growth on higher hygiene awareness globally.

As at 10.35am, Top Glove was 46 sen higher at RM20.42, with 6.83 million shares traded.
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Offline letsbefair

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Re: TOPGLOVE (7113)
« Reply #3 on: July 07, 2020, 06:18:18 PM »
Whoever bought in March/April would have made from 200% to 1000% depending on which glove company selected. For those who got it right just putting RM 150 thousand can net you more than 1 million ringgit return! To those who earn such a fortune he should send through Twitter a thank you message to Donald Trump! It was a perfect storm in the making. First a nincompoop president then the most contagious virus. A combination that created a human tragedy in USA. A working vaccine is available in China but just for military personnel. I wonder when CanSino will mass produce it for the whole world. Lots of money to be made!

As for America I am curious why all around Trump and Mike Pence have the virus and yet both men who do not believe in science still not infected. Why is Mike Pompeo, Peter Navarro, Steven Mnuchin, Larry Kudlow and the rest of the senior members plus their immediate families not infected at all? If CanSino has made it so can Moderna Pharmaceutical.
Agree to disagree that way no need to quarrel and bad mouth one another.

Offline Teosh

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Re: TOPGLOVE (7113)
« Reply #4 on: July 15, 2020, 12:19:13 PM »
Top Glove now third largest stock on Bursa Malaysia  :thumbsup:

https://www.malaymail.com/news/money/2020/07/13/top-glove-now-third-largest-stock-on-~/1884119


KUALA LUMPUR, July 13 — Top Glove Corporation Bhd has emerged as the third biggest company on Bursa Malaysia, overtaking Tenaga Nasional Bhd (TNB), as the glove maker’s market capitalisation increased to RM64.73 billion as of the close of trading today.

As at 5pm, Top Glove ended 9.5 per cent or RM2.08 higher at RM24 with 32.6 million shares traded.


The counter hit its all-time high of RM24.50 today, and is now behind the top two biggest stocks in terms of market capitalisation — Maybank (RM88.7 billion) and Public Bank (RM71.9 billion).

Meanwhile, TNB’s market value was RM64.58 billion at the close of trading today.

Top Glove chairman Tan Sri Lim Wee Chai said the world’s largest glove maker is aiming to build two factories every year to keep pace with the global demand for rubber gloves amidst increased usage in the medical industry and heightened hygiene awareness among people due to Covid-19.


He said the company currently has 45 factories, of which 34 are glove factories with 700 production lines that have the capacity to make a total of 78.7 billion pieces of gloves per annum.

Top Glove also remains open to mergers and acquisitions, joint-ventures and diversification opportunities.

In a note today, Kenanga Research said it has raised Top Glove’s target price (TP) to RM32, taking into account the management’s guide that August  gloves average selling price is set to be 30 per cent higher month-on-month instead of earlier guidance of +10 per cent.

MIDF Research said it expects Top Glove’s production to grow by 36 per cent from 73.8 billion pieces in the third quarter of 2020 to 100.4 billion pieces in the fourth quarter of 2021.

Hence, it upgraded Top Glove to a “Buy” from a “Neutral” with a revised TP of RM26.12 per share from RM17.30 previously.

AmBank Research meanwhile believes that the bullish momentum in Top Glove’s shares will continue to ascend toward the next technical TP of RM24.82 and RM26.62 as the stock has surged above the resistance level of RM20.16, with high trading volume. — Bernama
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Offline Teosh

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Re: TOPGLOVE (7113)
« Reply #5 on: July 15, 2020, 12:20:57 PM »
https://www.channelnewsasia.com/news/asia/covid-19-malaysia-top-glove-lim-wee-chai-interview-12931590

Malaysia’s largest rubber glove manufacturer bullish about prospects as demand soars amid COVID-19

KUALA LUMPUR: Malaysia’s largest rubber glove manufacturer Top Glove is investing US$1 billion over the next five years to expand its production capacity, in order to meet surging demand for protective gloves amid the COVID-19 pandemic.

Speaking to CNA in an exclusive interview, Top Glove’s executive chairman and founder Lim Wee Chai noted that the company’s third-quarter earnings ending May 31 jumped more than three times to hit almost US$90 million, while its share price has quadrupled since the beginning of the year.

The best quarter has yet to come, he declared, as the demand is still “very strong”.

“We are now only just (getting) started. There are more good quarters to come. It is only the first quarter and we are seeing good results ... The next five or six quarters can be even more in terms of sales revenue and profit.”

Its nitrile gloves, he said, are oversold by 360 days, which means that customers will have to wait for up to a year to receive their orders. Most buyers are state agencies and many are willing to pay a higher price in order to secure their deliveries.

Malaysia is reportedly producing around 65 per cent of the world’s supply for rubber gloves. There has been an exponential jump in demand for rubber gloves since the pandemic.

Dr Lim, 62, who started the company about 30 years ago with his wife Tong Siew Bee, took the company public in 2001. Top Glove obtained dual listing on SGX in 2016.

Top Glove Corporation now has 45 manufacturing facilities across the country and controls over a fifth of the world’s multi-billion dollar rubber glove industry.

With all its factories running at almost full capacity, Dr Lim wants to add up to 10 more factories over the next two years.

“Usually we build one or two factories a year, this year we are building more. It is good times, we build four or five factories this year and next year, we will also build another four to five factories.”

Top Glove Corporation’s current production capacity is 75 billion pieces of gloves per year. By 2021, this will be increased to close to 100 billion, he said.

CUTTING-EDGE TECHNOLOGY

A firm believer of cutting-edge technology, Dr Lim said Top Glove must constantly invest in research and development.

The company has more than 600 researchers and half of them are engineers, while the rest are chemists and scientists, he said.

“Traditional business grows very slow, 5 per cent to 10 per cent every year. But using technology, we can skill up … We find something new, something better - digitalisation, internet of things, artificial intelligence, all these are very important.”

In particular, automation and artificial intelligence have saved costs and improved efficiency. They have also enhanced the quality of the products he said.

By harnessing technology, between 1,000 to 2,000 workers are made redundant each year. They are then deployed to new factories, he explained.

The number of workers to produce per million gloves has been reduced significantly, from five to 10 a decade ago to less than two today, he also said.

LOFTY TARGET TO BECOME FORTUNE GLOBAL 500 COMPANY

Dr Lim who is a father of two grown children, has set lofty targets for himself and the company.

He wants Top Glove to become Malaysia’s second Fortune Global 500 company after Petronas by 2040, with an annual revenue of US$35 billion.

“In order to grow big, to become a Fortune Global 500 company, we need to grow 30 times … almost 500 factories. Now we have 45 factories,” he told CNA.

“It is very possible, because over the past 20 years, Top Glove has grown almost 200 times ... I think (it is) not that difficult provided we get the right team of people.”

Dr Lim added that he intends to live till 120 years old, by adhering to a strict health and fitness regime. He is a yoga enthusiast and plays badminton as well as golf twice a week.

He also hopes that his staff will follow his regime on hygiene, health and fitness as well as work ethics.

Top Glove has employed seven nutritionists, a team of doctors, dentists and nurses to look after its 20,000 employees.

“People are the most important asset for the company or any organisation. That's why this asset, must value it, must take care so that everybody is fit and healthy,” Dr Lim said.

Last year, the company announced that it would bear all recruitment-related fees for its foreign workers. On Monday (Jul 13), the company said that it would implement a programme that will allow workers who have paid recruitment fees to agents in their source country to be reimbursed.

He added: “(During) good times, we have to work hard, work smart … During bad times, difficult times, actually we learn more. We tend to innovate. Human beings during difficult times, they tend to work extra hard, think hard and have new ideas”.
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Offline Teosh

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Re: TOPGLOVE (7113)
« Reply #6 on: July 17, 2020, 08:56:20 AM »
Heavy selldown on Top Glove in Singapore after news on US detention order
https://www.theedgemarkets.com/article/heavy-selldown-top-glove-singapore-after-news-us-detention-order

Top Glove says can continue to ship to the US despite detention order issues
https://www.malaymail.com/news/malaysia/2020/07/16/top-glove-says-can-continue-to-ship-to-the-us-despite-detention-order-issue/1885232
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Offline Teosh

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Re: TOPGLOVE (7113)
« Reply #7 on: July 17, 2020, 08:57:48 AM »
Heavy selldown on Top Glove in Singapore after news on US detention order
https://www.theedgemarkets.com/article/heavy-selldown-top-glove-singapore-after-news-us-detention-order

Top Glove says can continue to ship to the US despite detention order issues
https://www.malaymail.com/news/malaysia/2020/07/16/top-glove-says-can-continue-to-ship-to-the-us-despite-detention-order-issue/1885232

will today be a falling knife ??? but for sure a roller coaster ride for shareholders :headbang: :headbang: :headbang: :headbang:
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Offline Teosh

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Re: TOPGLOVE (7113)
« Reply #8 on: July 17, 2020, 09:17:44 AM »
well supported by hardcore supporters  :phew:

COVID 19 yet vanished glove still high demand from globally  8)
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Offline Teosh

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Re: TOPGLOVE (7113)
« Reply #9 on: July 22, 2020, 09:52:27 AM »
Forced labour claims against Top Glove baseless — Saravanan

Bernama/Bernama
July 21, 2020 22:55 pm +08

PUTRAJAYA (July 21): Investigations by the Labour Department on rubber glove manufacturer, Top Glove Corp Bhd, relating to claims that the company used forced labour, was found to be baseless, said Human Resource Minister Datuk Seri M. Saravanan.

Commenting on the detention order on Top Glove products by the US Customs and Border Protection (CBP), Saravanan said it could affect the country's credibility and image at the international level, as well as influenced foreign investors’ confidence in the country following the baseless allegation.

"It is unfair and they should ask us for investigation, wait for the report, and then they should decide otherwise," he told reporters after a meeting with representatives from Top Glove and the Malaysian Rubber Glove Manufacturers Association at the Human Resources Ministry here today.

It was reported that the detention order by CBP on rubber glove exports to the US beginning July 15 was issued to two subsidiaries of Top Glove, namely Top Glove Sdn Bhd and TG Medical Sdn Bhd, due to elements of forced labour.

Stressing that the government would not compromise in the forced labour issue, Saravanan said he will visit Top Glove, as well as invite representatives from the US to see for themselves to prove that the claims were baseless.

"Top Glove will be my top priority as they are being blamed or accused for no reason, so I will visit (Top Glove) and send invitation to them (US representatives) through Wisma Putra," he added.

According to Saravanan, before the detention order on Top Glove was announced, an operation by task forces for the Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act 2007 and the Recovery Movement Control Order (MCO) was conducted at Top Glove's headquarters in Meru, Klang on July 13.

He said the investigations found that the company had violated the standard operating procedures of the MCO, namely not complying to social distancing in the work place and provision of cramped housing quarters, wherein the company was compounded by the Ministry of Housing and Local Government.

"However, there was no offence, and no elements of forced labour were detected," he said.

Meanwhile, Top Glove managing director Datuk Lee Kim Meow said the company would collate the evidence and present them to the CBP this week to deny the claims and was confident the issue would be resolved as early as next month.

He said the action by the CBP had caused its sales to drop by about 12.5 per cent.

He said the rubber gloves that could not be exported to the US would be exported to other countries including Canada, Australia and Europe.
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Offline Teosh

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Re: TOPGLOVE (7113)
« Reply #10 on: July 22, 2020, 09:54:42 AM »
Forced labour claims against Top Glove baseless — Saravanan

Bernama/Bernama
July 21, 2020 22:55 pm +08

PUTRAJAYA (July 21): Investigations by the Labour Department on rubber glove manufacturer, Top Glove Corp Bhd, relating to claims that the company used forced labour, was found to be baseless, said Human Resource Minister Datuk Seri M. Saravanan.

Commenting on the detention order on Top Glove products by the US Customs and Border Protection (CBP), Saravanan said it could affect the country's credibility and image at the international level, as well as influenced foreign investors’ confidence in the country following the baseless allegation.

"It is unfair and they should ask us for investigation, wait for the report, and then they should decide otherwise," he told reporters after a meeting with representatives from Top Glove and the Malaysian Rubber Glove Manufacturers Association at the Human Resources Ministry here today.

It was reported that the detention order by CBP on rubber glove exports to the US beginning July 15 was issued to two subsidiaries of Top Glove, namely Top Glove Sdn Bhd and TG Medical Sdn Bhd, due to elements of forced labour.

Stressing that the government would not compromise in the forced labour issue, Saravanan said he will visit Top Glove, as well as invite representatives from the US to see for themselves to prove that the claims were baseless.

"Top Glove will be my top priority as they are being blamed or accused for no reason, so I will visit (Top Glove) and send invitation to them (US representatives) through Wisma Putra," he added.

According to Saravanan, before the detention order on Top Glove was announced, an operation by task forces for the Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act 2007 and the Recovery Movement Control Order (MCO) was conducted at Top Glove's headquarters in Meru, Klang on July 13.

He said the investigations found that the company had violated the standard operating procedures of the MCO, namely not complying to social distancing in the work place and provision of cramped housing quarters, wherein the company was compounded by the Ministry of Housing and Local Government.

"However, there was no offence, and no elements of forced labour were detected," he said.

Meanwhile, Top Glove managing director Datuk Lee Kim Meow said the company would collate the evidence and present them to the CBP this week to deny the claims and was confident the issue would be resolved as early as next month.

He said the action by the CBP had caused its sales to drop by about 12.5 per cent.

He said the rubber gloves that could not be exported to the US would be exported to other countries including Canada, Australia and Europe.

https://www.theedgemarkets.com/article/forced-labour-claims-against-top-glove-baseless-%E2%80%94-saravanan

good news  :thumbsup:
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