The business landscape has changed
$TOPGLOV(7113.MY$ has just released it’s latest quarterly report , the revenue continue to drop due to lower volume of sales and selling prices. It is also noteworthy that there were impairments made on assets and goodwill due to the rationalisation exercise for the company’s operation, amounting to RM 389 mil .
Nevertheless, the “actual” performance actually improved to a loss of RM 65 mil , due to better cost structure and cost management .
While the local glove players are cautious in capacity and production planning, their utilisation of factory are ranging generally between 30–50% ; the gloves maker in china such as $Intco Medical Technology(300677.SZ$ $Blue Sail Medical(002382.SZ$ have been ramping up the production of gloves , resulting in the drop in Malaysian glove makers’ market share .
The business landscape of glove manufacturing is changing , with the more involvements from Chinese manufacturers , this also will affect the long term profitablity of local players , even after the glove demand returns to normalcy.
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