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KUALA LUMPUR: Shares of Top Glove Corporation Bhd
Trade fell to a low of RM6.80 early Tuesday after 28 of its factories in Kapar, Klang, were shut down in stages following a surge in Covid-19 cases.
At 9:10 am, the world’s largest glove maker’s shares were down 40 sen to RM6.95.
The drop in its share price also dragged the FBM KLCI down. The KLCI fell 3.13 points or 0.2% to 1,594.35.
The turnover was 762.74 million shares valued at RM350.57 thousand. There were 228 winners, 296 losers, and 343 unchanged counters.
“There are 1,067 cases just today (Monday). Factories will be gradually closed so that their workers can be evaluated, ”said Chief Minister Datuk Seri Ismail Sabri Yaakob.
Last Tuesday, a Top Glove worker dormitory and the surrounding area were placed under an enhanced motion control (MCO) order.
AmInvestment Research said that since November 18, Top Glove has temporarily halted production at 16 facilities in Meru, Klang. The remainder of the 12 facilities at Meru have been operating at reduced capacities.
Of the 28 factories listed above, 19 are glove production facilities with an estimated capacity of more than 40 billion pieces per year.
“The company has not disclosed the monetary loss resulting from this closure. However, based on our rough estimates, assuming that 19 of the 36 glove production factories operating in Meru, Klang are closed for two weeks, the total impact on Top Glove’s revenue will be around 2%, which will not is significant.
“We are not making any changes to our earnings forecast at this time. However, we will monitor closely to assess the total loss and will adjust our figures accordingly once the official figures are announced. Hold Hold with an unchanged fair value of RM7.88 per share based on a five-year average price-earnings ratio of 28 times, ”he said.
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