Hartalega overtakes Public Bank as Malaysia’s third most valuable listed firm

Hartalega overtakes Public Bank as Malaysia’s third most valuable listed firm
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KUALA LUMPUR (Aug 1): Hartalega Holdings Bhd overtook Public Bank Bhd to become Malaysia third most valuable listed company on July 2020’s final trading day on Thursday (July 30) when the rubber glove manufacturer’s market capitalisation of about RM69.51 billion surpassed Public Bank’s estimated RM66 billion.

On Thursday, Hartelega’s share price closed up 16 sen or 0.8% at RM20.28 while Public Bank shares fell 54 sen or 3.08% to RM17.

Malaysia’s most-valuable listed entity is Malayan Banking Bhd (Maybank) followed by Top Glove Corp Bhd.

Maybank’s share price ended down eight sen or 1.03% at RM7.67, which values the group at around RM86.22 billion. 

Top Glove dropped 26 sen or 0.99% to RM25.88, valuing the world’s largest rubber glove manufacturer by output volume at some RM69.96 billion.

Malaysian markets were closed on Friday (July 31) in conjunction with the Hari Raya Haji holiday. Trading will resume on Monday (Aug 3).

Hartalega executive chairman Kuan Kam Hon said in the company’s latest annual report that as the rubber glove manufacturer continues to ramp up capacity, the group is cognizant of the fact that the baseline for global demand has shifted and this is expected to be the new normal. 

"Premised on this and as a group which adopts a longer-term perspective, our strategic growth plans are aligned with the anticipated long-term needs of the global healthcare industry.

"Our preliminary plans for NGC 2.0 entail seven production plants, comprising 82 production lines with an installed capacity of 32 billion pieces of gloves. Once completed, this will bring the group’s total installed capacity to 76 billion pieces per annum,” Kuan said.

NGC stands for Hartalega’ Next Generation Integrated Glove Manufacturing Complex in Sepang, Selangor.  

Rubber glove manufacturers including FBM KLCI constituents Top Glove and Hartalega have been closely watched as the global Covid-19 pandemic leads to expectation of higher demand for gloves to curb the outbreak, hence better earnings for these companies.

According to Top Glove’s website, the group has an annual glove production capacity of 80.2 billion pieces across its 45 factories.