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- 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%
https://klse.i3investor.com/blogs/sts/2021-01-06-story-h1539199903-GLOVE_SELLDOWN_WHOLLY_UNREASONABLE_TOP_GLOVE_AGM_SUMMARY.jsp
