Top Glove Corp. Bhd.

Company Background

Top Glove is the world's largest natural rubber glove maker, exporting to over 195 countries. The Malaysia-based company produces latex and nitrile gloves for health care providers and manufacturers, as well as households.

Chairman Lim Wee Chai, who had been a salesman, and his wife founded the company in 1991, when rubber prices were low and the glove industry was booming. In the mid-1990s, rubber prices rose and the industry went through consolidation; a number of rivals were squeezed out of business.

Top Glove, which started out with three production lines, now has about 500. The company turns out 48 billion gloves a year, accounting for about a quarter of the global market. The group rings up more than half of its sales in Europe and North America, but Top Glove believes demand for gloves in other regions, especially Asia, will continue to increase as populations grow.

Lim is considered a hands-on manager and adheres to a philosophy of efficiently investing $1 for every $2 earned. To save on energy costs, he keeps the air conditioning in his office set at a relatively toasty 25 C.

Business Summary

Top Glove Corp. Bhd. is an investment holding company, which engages in the provision of management services. It offers latex, nitrile, vinyl, surgical, household, cleanroom, cast polyethylene, industrial high risk, and thermoplastic elastomer gloves. It operates through the following geographical segments: Malaysia, Thailand, The People's Republic of China, and Others. The company was founded by Wee Chai Lim and Siew Bee Tong in 1991 and is headquartered in Shah Alam, Malaysia.

Financial Highlights

Aug 2022	MYR	USD
Revenue	5,572.34M	1,304.23M
Gross Profit	953.37M	223.14M
Operating income	341.39M	79.90M
Income before tax	362.13M	84.75M
Net income	225.56M	52.79M
EBITDA	689.55M	161.39M
Diluted EPS	0.02	0.00
Dividends Per Share	0.01	0.00
Total Assets	8,116.71M	1,813.58M
Total liabilities	2,499.16M	558.41M
Total equity	5,579.22M	1,246.61M
Operating cash flow	152.95M	35.80M
	Currency in MYR	Currency in USD

Historical Data

MYR | USD

	Aug 2018	Aug 2019	Aug 2020	Aug 2021	Aug 2022
Revenue	4,220.74M	4,801.13M	7,237.42M	16,361.44M	5,572.34M
Gross Profit	842.36M	883.99M	2,850.41M	11,102.10M	953.37M
Operating income	534.67M	481.80M	2,247.58M	9,948.63M	341.39M
Income before tax	522.80M	423.58M	2,166.97M	10,031.16M	362.13M
Net income	428.83M	364.67M	1,752.58M	7,710.32M	225.56M
EBITDA	679.81M	674.30M	2,492.98M	10,257.30M	689.55M
Diluted EPS	0.05	0.04	0.22	0.95	0.02
Dividends Per Share	0.02	0.02	0.11	0.65	0.01
Total Assets	5,297.35M	5,688.20M	8,705.96M	9,782.42M	8,116.71M
Total liabilities	2,898.95M	3,134.06M	3,810.34M	3,857.52M	2,499.16M
Total equity	2,383.04M	2,536.95M	4,870.75M	5,872.40M	5,579.22M
Operating cash flow	353.45M	536.80M	3,453.86M	7,837.15M	152.95M

	Aug 2018	Aug 2019	Aug 2020	Aug 2021	Aug 2022
Revenue	1,045.08M	1,159.40M	1,715.07M	3,967.63M	1,304.23M
Gross Profit	208.57M	213.47M	675.47M	2,692.25M	223.14M
Operating income	132.38M	116.34M	532.61M	2,412.53M	79.90M
Income before tax	129.44M	102.28M	513.51M	2,432.55M	84.75M
Net income	106.18M	88.06M	415.31M	1,869.74M	52.79M
EBITDA	168.32M	162.83M	590.77M	2,487.38M	161.39M
Diluted EPS	0.01	0.01	0.05	0.23	0.00
Dividends Per Share	0.00	0.00	0.02	0.15	0.00
Total Assets	1,289.04M	1,352.56M	2,090.01M	2,353.24M	1,813.58M
Total liabilities	705.42M	745.22M	914.73M	927.95M	558.41M
Total equity	579.88M	603.24M	1,169.30M	1,412.65M	1,246.61M
Operating cash flow	87.51M	129.62M	818.47M	1,900.50M	35.80M

Valuation Measures

Aug 2022
PER	28.54
ROA	2.52%
ROE	3.93%
Operating margin	6.12%
Profit margin	4.04%

Key executives

Managing Director & Executive Director: Cheong Guan Lim
Senior General Manager-Finance: Say Keong Liew
General Manager-Information Technology: Kian Guan Tan
General Manager-Research & Development: Keuw Wei Lim
Senior General Manager-Compliance: Guan Heng Ong

Shareholders

LIM WEE CHAI (27.1%)
Firstway United Corp. (6.7%)
Bank of Singapore Ltd. (2.7%)
Top Glove Corp. Bhd. (2.4%)
The Vanguard Group, Inc. (2.0%)
Kumpulan Wang Persaraan (1.2%)
LIM HOOI SIN (1.2%)
BlackRock Fund Advisors (1.1%)
Dimensional Fund Advisors LP (0.8%)
Employees Provident Fund (0.4%)

Contact Details

Website:http://www.topglove.com
Address: Level 21, Top Glove Tower, 16, Persiaran Setia Dagang, Setia Alam, Shah Alam, 40170, Malaysia
Phone: +60.3.3362.3098

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Competitors

Mercator Medical SA
Sri Trang Agro-Industry Public Co. Ltd.
Sri Trang Gloves (Thailand) Public Co. Ltd.
Zhonghong Pulin Medical Products Co., Ltd. Class A

Last Updated on 17 Mar, 2023