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Showing posts from July, 2020

Top Glove: do fundamentals back the industry rally or it is the pricing overstretch?

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Since I am now back in Malaysia, I have been constantly bombarded by news about the glove makers in Malaysia. Almost a news article about them from each local news-source and it even broke to the Financial Times. So I thought I’d look into the hype and see what it is all about myself. My narrative of Top Glove My story for Top Glove is this. Top Glove is the biggest pure-play glove manufacturer in the world. The company operates in Asia and mostly locally, in Malaysia. The company has seen a spurt of growth from the coronavirus pandemic as demand jumps for disposable medical supplies. Due to the commodity nature of its business, most of the growth and profitability will be experienced this year. Supply will meet with demand with high levels of competition in the next few years, causing the company to converge back to the industry. Medical gloves are a commodity During the height of the coronavirus panic, hygiene supplies were selling at absurd prices which were contr