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AGM Watch: MSWG is wary of Mah Sing’s glove venture prospect

Publish date: Sun, 26 Jun 2022, 02:08 PM

THE Minority Shareholders Watch Group (MSWG) has expressed concern over the future of Mah Sing Group Bhd’s glove venture which is grouped under the company’s manufacturing business segment that also includes plastic manufacturing (its core business before diversifying into the property sector).

This comes after the manufacturing business segment recorded a higher revenue of RM370.3 mil in FY2021 (FY2020: RM288.2 mil) but incurred a loss of RM8.46 mil in FY2021 as compared to a segment profit of RM15.95 mil in the previous financial year.

“What is the revenue and segment loss of the glove manufacturing business in FY 2021?” probed MSWG.

“With the heightened competitions from new players and the average selling price of rubber gloves retracing from its high at the peak of the COVID-19 pandemic, is the glove manufacturing business expected to record a higher loss in FY2022? If yes, what is the expected loss?”

Mah Sing is scheduled to stage its fully virtual 30th annual general meeting (AGM) on June 30 (Thursday) at 10am.

As a whole, however, Mah Sing posted a net profit of RM160.85 mil for its FY2021 ended Dec 31, 2021 (FY2020: RM94.34 mil) on the back of RM1.75 bil in revenue (FY2020: RM1.53 bil).

MSWG further enquired from Mah Sing how many of its 12  production lines in its glove manufacturing business are in production and what is the production utilisation rate of the production lines as of May 2022 as compared to March 2022.

“Does the company have any expansion plan for the glove manufacturing business? If yes, please outline the expansion plan in terms of the number of production lines to install, annual production of gloves from the new lines and when is it targeted to be completed,” requested the shareholder activism group.

“It was reported in the Edge Malaysia dated May 24 that the company is considering selling the glove manufacturing business. Is the news accurate? What are the reasons the company is considering selling the glove business?”

At the close of Friday’s (May 24) trading, Mah Sing was up 1 sen or 1.72% to 59 sen with 955,000 shares traded, thus valuing the company at RM1.43 bil. – June 26, 2022

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