The Top Glove Corporation Berhad is a Malaysian company that manufactures rubber gloves and other safety equipment. Its products also include dental dams and face masks. It has over 50 manufacturing plants in Malaysia, China, Thailand, and Vietnam. The company has a strong presence in the medical device industry, and specializes in developing and manufacturing medical devices for a variety of industries.
The company’s stock has declined over the past six months, with its shares now priced at just 59 sen – the lowest since September 2016. Oversupply in the rubber glove industry has resulted in a sharp decline in the industry’s average selling price. Top Glove was a darling during the recent pandemic, with its shares trading for as much as 104.9 million shares.
Top Glove Corp Bhd is the largest manufacturer of medical gloves in Malaysia. It is planning a $1.9 billion Hong Kong listing. It is betting on pandemic-induced sales to offset the effects of a slowdown in the medical sector and U.S. sanctions. In fact, the company has talked about how post-pandemic sales could exceed pre-pandemic levels.
The company’s valuation is reasonable compared to Kossan Rubber and Hartalega Holdings. Although earnings are still up compared to the pre-pandemic period, analysts have cut their average revenue and net income estimates by 7.3% and 5% respectively in the past 30 days. However, investors should consider their investment strategy and plan for a potential fall in the stock price. If Top Glove’s stock price goes down, it will likely result in a capital loss for shareholders.
