THE HEALTH | SEPTEMBER , 2021

BY MATHENNY K

Malaysia is the world ’ s largest maker of rubber gloves , producing 67 per cent of total glove consumption globally . It exports to over 195 countries . The country is also overwhelmed with demand , having to cope with an order waiting list of more than a year for significant glove players compared to the standard delivery time of 30-40 days . In fact , the country has supplied 240 billion pieces of rubber gloves worldwide , meeting almost 70 per cent of the 360 billion pieces of world demand in 2020 . In the first quarter of 2021 alone , Malaysian producers reported record sales exporting

53 billion gloves .

The Malaysian Rubber Glove Manufacturers Association ( MARGMA ) projects the rubber glove annual demand to grow to between 15 and 20 per cent with export revenue of RM34 billion in 2021 . The global market is set to hit 420 billion gloves .

As a result , local glove players saw their revenues and net profits surge in 2020 . It sent share prices sky-high as investors were bullish over the high demand for gloves and the reopening of economic activities after

Top Glove Corporation Berhad

Executive Chairman Tan Sri Dr Lim Wee Chai

WHEN Top Glove Corporation share prices hit an all-time high of RM9.38 ( after adjusting for a bonus issue ) in August 2020 , Executive Chairman Tan Sri Dr Lim Wee Chai saw his wealth balloon to RM18.6 billion with 700 million of direct shares in hand .

The world ’ s biggest glove maker ’ s net profit in its Q1FY2021 ended Nov 30 , 2020 , soared 2032 per cent to RM2.38 billion from RM111.43 million in the preceding year corresponding period . This was attributed to solid demand in gloves due to the pandemic , efficiencies in production and higher average selling price ( ASP ).

However , in November last year , Top Glove was embroiled in a major Covid-19 infection cluster – the Teratai cluster – involving more than 2,000 of its workers . It affected production as it had to stop operations in 20 factories and eight production lines .

This immediately impacted the glove producer as its shares dipped 17 per cent , with about RM11 billion market capitalisation wiped out in the same month .

Thus , although Lim has been gradually mopping up Top Glove shares since last year – with an increase of 1.23 per cent to 26.94 per cent as of Aug 13 – his stake in the company is now worth only RM8.1 billion , having lost almost 60 per cent or RMRM10.5 billion in market cap from its peak .

Meanwhile , Tropicana Corporation Bhd , in which Lim is chairman and major shareholder , bought 11.25 million Top

Glove shares in December 2020 . It suffered losses when it disposed 1.85 million of the glove maker ’ s shares in April for RM9.98 million at or RM5.40 / share , below its investment cost of RM12.59 million or RM6.80 / share .

Hartalega Holdings Berhad

Founder and Executive Chairman Kuan Kam Hon @ Kwan Kam Onn

WITH 1.6 billion of Hartalega Holdings shares in hand , its founder and Executive Chairman Kuan Kam Hon @ Kwan Kam Onn ’ s wealth expanded to RM31.33 billion when its shares reached a 52-week high of RM18.69 / share .

Furthermore , the glove maker recorded its best-ever quarterly net profit in its Q2FY2021 ended Sept 30 , 2020 , at RM544.96 million , a fivefold increase from RM103.87 million in Q2FY2020 . Meanwhile , revenue grew RM636.6 million or 89.7 per cent to RM1.35 billion compared to RM709.4 million in the preceding year corresponding quarter .

The good financial performance was attributed mainly to the higher sales revenue , lower material costs and better production efficiency .

The glove producer ’ s stellar earnings growth continued in 2021 . In its latest financial results ( Q1FY2022 ), its net profit rose almost 10-fold to RM2.26 billion from RM219.72 million a year ago . The company attributed the good results of higher sales revenue and lower operation costs , offset by higher raw material prices .

Despite earnings growth remaining strong in 2021 , its share price has plunged more than 60 per cent to RM7.07 / share by Aug 17 . As a result , the value of Kuan ’ s shares in Hartalega has also shrunk significantly by 64 per cent to RM11.19 billion .

The company started only with four production lines producing rubber gloves in Kepong in 1988 . Today , Hartalega has grown into one of the