Corona raises the price of this company’s shares by about 40 times
The Malaysian company Top Glove, the largest manufacturer of medical gloves in the world, continues to reap profits since the start of the Corona crisis, with a steady rise in demand for its products due to the pandemic, which is witnessing an increasing demand for medical protection products at this time when the company expects to continue its gains during the coming period.
According to a report published by the American CNBC network, the company’s shares have risen since the beginning of this year by about 4000%, which is equivalent to 40 times at the end of last week’s transactions compared to the company’s share price at the beginning of the year.
“We are optimistic about future … the gains will not stop there,” the company’s managing director Lee Kim said in an interview with Network America.
At the end of last week, the company announced that its net profit during the current fiscal year 2020 had increased by 417%, compared with the last fiscal year, and the company said that it witnessed unparalleled global demand for its products due to the pandemic.
The company expects its profits to grow in the next fiscal year between 20-30%, while the pace of growth will slow in the fiscal year 2022 by 15-20%.
When the managing director of the company was asked about the impact of storage on the company’s future business, he said that his company’s goods are sold before the containers reach their warehouse.
“It is not as if they buy gloves for storage and preparation for the next two or three months … During our conversation with our customers, they told us that they do not have any stocks with desperate attempts to obtain the largest amount of medical gloves,” he said.
The shares of the Malaysian company are listed on the local money market in addition to an external listing in the Singapore money market.
Reuters reported earlier last week that the company is planning to launch in the Hong Kong money market during the next few months, while the company’s managing director said that they are studying the opportunities available to acquire them amid great demand from investors.
“We are looking to create a bigger platform for investors who want to pump their money into the company during the coming period,” Kim added.