KUALA LUMPUR: Glove maker Supermax Corp Bhd said its profit margins remained at near record levels in the third quarter ended March 31, but warned that glove prices have started to retreat from recent highs.
KUALA LUMPUR (May 5): As more new capacities are available in the market, rubber glove prices have started falling, said Supermax Corp Bhd. The glove prices have since dropped by between 15% and 25%. Currently, the spot market prices are lower than the contracted prices, said the rubber glove maker in its quarterly results announcement.
The group, which posted a net profit of RM1 billion for the third quarter ended March 31, 2021 (3QFY21), said it anticipates the competition to intensify going forward.
There have been more new glove players jumping on the bandwagon in view of the surge in demand. In addition, the current players are increasing capacities in a large scale, especially players who are public-listed companies based in China, Malaysia and Thailand, Supermax commented.
Top Glove Stock Rises After Slashing Hong Kong Share Sale Size
Bloomberg 2 hrs ago Yantoultra Ngui
(Bloomberg) Shares of the world’s largest rubber glove maker rose to a two-month high after the company cut its share sale in Hong Kong by nearly half of its earlier target, a move analysts said will minimize earnings dilution.
Top Glove Corp. climbed as much as 2.5% in Kuala Lumpur Friday, the highest since Feb. 23. The company, whose shares also trade in Singapore, will issue up to 793.5 million shares, down from 1.49 billion announced in February, it said in a filing on Thursday. The fundraising target stands reduced to 4.22 billion ringgit ($1 billion) from 7.77 billion ringgit previously, according to the filing.
Global funds bought a net RM189.9mil of Press Metal Aluminium Holdings Bhd, the brokerage said in a report.
Shares of glove makers were one of Asia’s hottest pandemic trades for much of 2020 before the rollouts of vaccines around the world weakened their appeal and became targets of short sellers.
The three biggest glove stocks, including Top Glove Corp, are the worst performers in Malaysia’s benchmark equity gauge this year.
“There is still significant value to be derived from Malaysian glove players which command 65%-68% of the global market share, ” Kenanga Investment Bank Bhd said in a report.