Highlights

The way I see it

Author: omione   |   Latest post: Tue, 23 Feb 2021, 2:48 PM

 

GLOVE SELLDOWN WHOLLY UNREASONABLE - TOP GLOVE AGM SUMMARY

Author:   |    Publish date:


**********
 
  • Top Glove AGM Summary (by Malacca Securities MPlus)

 

  • ASP in Q2FY21 is expected 30% higher than Q1FY21. The whole industry players in gloves manufacturing agreed that the ASP will remain strong for year 2021

 

  • Delivery period increase from 30~40 days previous to 560 days and 370 days for nitrile and natural rubber gloves respectively. Note: Nitrile and natural rubber gloves comprises of around 90% of Top Glove revenue in FY20.

 

  • US gloves stockpile reduced from 16.9 billion pieces to 2 billion pieces in October 2020. 

 

  • Some Top Glove customer stockpile for gloves reduced from 2~3 months to 1~2 weeks

 

  • Exporting gloves to 195 countries currently.

 

  • Has enough raw material for continuous manufacturing of gloves. 

 

  • Expects new players in gloves manufacturing facing issues from factory installing, workers and raw material issues. 

 

  • Dividend payout for Q2, Q3 and Q4FY21 will be 70% on PATAMI.

 

  • Reason for share buyback (SBB) is because Top Glove thinks their company is undervalued at the purchased price and expects better return than putting into FD which gives 2% only. The amount of SBB is only 2.15% from the allowed 10% threshold

 

  • Top Glove has 4 billion cash as of 31 Dec 2020. 

 

  • US Border issues will be resolved when the independent international consultant verified the hostels and accommodation meets the required of Workers Housing Act 446. 

 

  • All Top Glove factories that has been affected by Covid-19 lockdown has been resumed operations as of 20 Dec 2020. The lockdown is expected to impact 4% of the total revenue and profit. 

 

  • Top Glove is spending 100 million for next 3 years to build hostels for 7300 workers and using 95 million to acquire new apartments for 2700 workers

 

  • Top Glove is moving towards automation direction which previously 1 million gloves need 8 workers and now only 1.6 workers. 

 

  • Top Glove current factory utilization rate is 95%

 

  • Malaysia will remain the focus ground of gloves manufacturing activities at the same time expanding their existing foreign manufacturing plant. 

 

  • Top Glove Hong Kong listed is expected around mid 2021. 

 

  • Top Glove aims to achieve Fortune500 by 2035 with an expected CAGR of 20%. Note: Top Glove current CAGR is 28%
Share this

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Earn MQ Points while trading with MQ Traders Group
MQ Affiliate
Earn side income from MQ Affiliate Program
 
 

455  483  583 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 FOCUS-PA 0.02-0.005 
 BORNOIL 0.0450.00 
 LKL 0.375-0.075 
 DIGI-C45 0.095-0.01 
 GFM-WC 0.125+0.02 
 FOCUS 0.50+0.02 
 GFM 0.345+0.035 
 BJCORP 0.445-0.005 
 LUSTER 0.255+0.01 
 DNEX 0.820.00 

FEATURED POSTS

1. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!

TOP ARTICLES

1. 适用于股票投资的“5件事”/冷眼 【冷眼专栏】漫漫投资路
2. LB Aluminium is much cheaper than Press Metal & PMB - Koon Yew Yin Koon Yew Yin's Blog
3. A hidden gem with huge upside This stock is going to the moon! >300% return
4. DPIH coverage by the edge malaysia Great Penny Picks in Bursa Malaysia 1
5. I have a dog - Koon Yew Yin Koon Yew Yin's Blog
6. ARANK 7214- 在铝铝上涨的牛市里,ARANK 能否铝战铝胜? 风起云涌 股霸天下
7. 套利回吐 7手套股蒸发40亿 星洲日報/投資致富‧企業故事
8. JAKS: Questionable disposal of JSB 51% equity in JIC to ICD for consideration of RM1.00 Sslee blog
PARTNERS & BROKERS