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KUALA LUMPUR (Nov 25): Selling pressure on Top Glove Corp Bhd shares appeared to have eased so far after the share price fell as much as 3% compared to yesterday’s 7% drop, already Investors weighed the company’s updates on the impact of the storm. staged shutdown of its manufacturing facilities within Meru in Klang, Selangor to curb the spread of the Covid-19 pandemic.
“We estimate that about 3% of our fiscal year 21 sales revenue will be affected,” Top Glove said in a Bursa Malaysia presentation yesterday.
Today, in Bursa’s 12:30 pm break, Top Glove’s share price fell 14 sen or 2% to RM6.66 for a market capitalization of approximately RM54.73 billion.
The accountant, who saw some 36 million shares changed hands, cut losses after falling as low as 20 sen or 3% to RM6.60. The highest share price so far was RM6.88.
Yesterday, Top Glove’s share price closed down 55 sen or 7% to RM6.80.
After the markets closed at 5 p.m. yesterday, Top said in a Bursa presentation that its 16 facilities in Meru, Klang have temporarily stopped production since November 17, 2020.
Top Glove said the remaining 12 facilities are currently operating at about 20% of their capacity and will be temporarily closed in stages for employee Covid-19 testing and full site cleanup before reopening.
“As part of our risk management strategy, Top Glove factories / facilities are diverse in location and countries with business continuity plans. The impact of this temporary disruption is expected to cause some delay in our delivery schedule of approximately two to four weeks for those facilities. However, we do not anticipate penalties for this delivery delay. We estimate that about 3% of our fiscal year 21 sales revenue will be impacted, “Top Glove said.
Authorities implemented the Enhanced Movement Control Order (EMCO) prompted by Covid-19 from Nov. 17-30 at Top Glove-specific foreign worker dormitories in Meru.
At the Top Glove’s Bursa presentation yesterday, the company, referring to EMCO’s impact on its production capacity, said that the 28 affected facilities in Meru represent about 50% of the glove maker’s total production capacity.
“As a mitigation measure, the company has rescheduled the production plan for unaffected facilities to produce such urgent orders,” Top Glove said.
According to updates on the Top Glove website, the world’s largest rubber glove manufacturer by production capacity can produce up to 90 billion pieces of gloves per year by October 2020 at its 36 glove factories.
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