Stocks of Malaysia Upper glove, the world’s largest manufacturer of medical gloves, are down more than 50% this year as the global roll out of Covid-19 vaccinations dampened demand for gloves.
“As in any business, there are always ups and downs. And you can’t expect super winnings to last long, long. So we’re glad we had a good run last year,” said Lee Kim Meow, Top The Managing Director of Glove told CNBC: “Road signs Asia” on Monday.
The company announced on Friday a 48% year-over-year decline in net income to 608 million Malaysian ringgits ($ 145.11 million) for the June-August period. Sales were around 2.1 billion ringgits, 32% less than a year ago.
The results were “weaker due to the normalizing demand for the global introduction of vaccines, resulting in lower sales volumes and [average selling prices]that weren’t offset by a corresponding cut in commodity prices, “Top Glove said in his annual accounts.
Top Glove shares in Malaysia fell more than 5% on Monday, increasing their year-to-date losses to over 52%.
In comparison, is the benchmark stock index FTSE Bursa Malaysia KLCI index down less than 1% on the same day.
Last year, Top Glove’s shares rose 290% as they posted record sales and earnings, thanks increasing demand for gloves during the pandemic.
Upper glove a plan to pursue “dual primary listing” was delayed to raise $ 1 billion on the Hong Kong Stock Exchange after the company was hit with the US import ban.
Lee told CNBC the company plans to continue listing. Top Glove already has a main listing in Malaysia and a Second listing in Singapore.
“We felt that for the sake of long-term business, in order to move forward and see the benefits of being listed in Hong Kong, we feel we have to go through this,” said the executive director.
“A listing in Hong Kong will put us in a good position to be where we want to be to achieve our dream of being a Fortune Global 500 company in 2030,” he added.