Top Glove trending ahead of results announcement

Top Glove trending ahead of results announcement

KUALA LUMPUR- Top Glove Corporation Bhd’s shares were heavily-traded in early trade ahead of the release of its financial year 2020 (FY2020) results later today.

It had opened 35 sen stronger at RM8.78 compared to RM8.43 at Tuesday’s close, but pared its gains to RM8.55 with over 38 million shares traded at 10.31 am, making it one of the most active counters on Bursa Malaysia.

During the announcement of its results for the third quarter of 2020 (Q3 2020), the glove maker expressed confidence that it would achieve another record-high financial performance for Q4 ended Aug 31, 2020.

The world’s largest rubber glove manufacturer said that the upward momentum will continue to even beyond 2020 due to the continuous global demand for rubber gloves amidst the ongoing COVID-19 pandemic.

Executive chairman Tan Sri Lim Wee Chai said the average selling price (ASP) for rubber gloves is expected to increase by about 30 per cent in Q4 2020.

In Q3 2020, its sales order jumped by 180 per cent and the ASP increased by 30 per cent, which resulted in the company’s net profit skyrocketing to an all time high of RM347.90 million versus RM74.67 million in the same period last year.

Revenue jumped 42 per cent to RM1.69 billion from RM1.19 billion previously, while its shares also spiked above RM25 following its strong prospects.

To reward its shareholders and make the shares affordable, the company implemented a two-for-one bonus share exercise on Sept 3, which saw the shares hovering above RM8 per unit.