$Top Glove (BVA.SG)$ Good: Glove price decline is slowing Th...
Good: Glove price decline is slowing
The price of raw materials has declined, but the group discovered that the average price of gloves has slowed down, meaning that the downward trend will not continue; it also expects to benefit from the decline in raw material prices. This includes the average price of concentrated natural rubber falling 7% to RM4.73 per kilogram, and the price of nitrile rubber falling 49% year-on-year to 0.91 US dollars per US kilogram.
The group maintains a positive long-term outlook for the rubber glove industry, due to a 10% annual increase in demand, mainly driven by the use and awareness of gloves in the health care industry after the pandemic.
Lin Jiangyuan, managing director of Top Glove Group, said that the past six months have been operating amidst headwinds. This is expected. After that, they will experience normalization and eventually recovery.
Looking ahead, despite the difficult environment, the group is cautiously optimistic that it can recover in 2023.
Lin Jiangyuan said that in order to meet the challenge, immediate priority measures are to maintain efficient operations, maintain cost control discipline, and do our best to preserve cash even when production capacity is low.
At the same time, the group also takes a long-term view and focuses on maintaining the sustainability of employees, customers and financial performance.
He praised the group team for their commitment and efforts to overcome the harsh environment. He believes that with the support of employees, everyone can get through difficult times peacefully.
Despite the positive long-term outlook for gloves, the group expects the current difficult and challenging environment to continue until 2023.
Lin Jiang Yuan said, “After the global pandemic, it is expected that we will enter a period of adjustment thereafter. We are optimistic that supply and demand for gloves will eventually be re-balanced, reflecting actual consumption levels and the true potential of the glove industry.”
Despite the challenges of the operating environment, Top Glove received special honors such as the Export Excellence Award and the highest return on equity in health stocks in the past 3 years.
The group has also been included in the Dow Jones 2022 Sustainability Index for 4 consecutive years, and Top Glove also continues to support community and charitable work.
The price of raw materials has declined, but the group discovered that the average price of gloves has slowed down, meaning that the downward trend will not continue; it also expects to benefit from the decline in raw material prices. This includes the average price of concentrated natural rubber falling 7% to RM4.73 per kilogram, and the price of nitrile rubber falling 49% year-on-year to 0.91 US dollars per US kilogram.
The group maintains a positive long-term outlook for the rubber glove industry, due to a 10% annual increase in demand, mainly driven by the use and awareness of gloves in the health care industry after the pandemic.
Lin Jiangyuan, managing director of Top Glove Group, said that the past six months have been operating amidst headwinds. This is expected. After that, they will experience normalization and eventually recovery.
Looking ahead, despite the difficult environment, the group is cautiously optimistic that it can recover in 2023.
Lin Jiangyuan said that in order to meet the challenge, immediate priority measures are to maintain efficient operations, maintain cost control discipline, and do our best to preserve cash even when production capacity is low.
At the same time, the group also takes a long-term view and focuses on maintaining the sustainability of employees, customers and financial performance.
He praised the group team for their commitment and efforts to overcome the harsh environment. He believes that with the support of employees, everyone can get through difficult times peacefully.
Despite the positive long-term outlook for gloves, the group expects the current difficult and challenging environment to continue until 2023.
Lin Jiang Yuan said, “After the global pandemic, it is expected that we will enter a period of adjustment thereafter. We are optimistic that supply and demand for gloves will eventually be re-balanced, reflecting actual consumption levels and the true potential of the glove industry.”
Despite the challenges of the operating environment, Top Glove received special honors such as the Export Excellence Award and the highest return on equity in health stocks in the past 3 years.
The group has also been included in the Dow Jones 2022 Sustainability Index for 4 consecutive years, and Top Glove also continues to support community and charitable work.
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