Top Glove down ahead of Friday's 1QFY22 result announcement

Top Glove down ahead of Friday's 1QFY22 result announcement
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KUALA LUMPUR (Dec 9): Top Glove Corp Bhd remained in the red with more than 1% loss ahead of the release of its results for the first quarter of financial year 2022 (1QFY22).

The glove maker will be releasing its results for 1QFY22 ended Nov 30, 2021 on Friday.

As at 12.30pm, the counter eased three sen to RM2.41 with 8.42 million shares traded. The stock has dropped about 14% from RM2.81 last Thursday.

Meanwhile, the company's shareholder approval for its Stock Exchange of Hong Kong (HKEX) listing plan had already been factored in by the market, hence the news did not excite investors, an analyst told Bernama.

He said the lower average selling price (ASP) projection amid normalised demand is also hurting its future prospects.

Top Glove on Thursday secured shareholder approval at its extraordinary general meeting in support of its HKEX listing plan.

Barring unforeseen circumstances and subject to the relevant approvals being obtained, the company expects the proposed listing to be completed in the first quarter of 2022.

"Upon completion of this exercise, Top Glove shares will be fungible among the three stock exchanges it is listed on, namely Bursa Malaysia Securities, Singapore Exchange Ltd, and HKEX, which is a highly liquid and active market," managing director Datuk Lee Kim Meow said.

Top Glove's net profit jumped 349% to RM7.87 billion in FY21 from RM1.75 billion in the same period a year earlier.

Revenue for the year also surged by 127% to RM16.4 billion from RM7.24 billion in FY20 due to a strong glove demand, coupled with elevated ASP driven by the ongoing pandemic.

However, its net profit declined to RM607.95 million in 4QFY21 from RM1.18 billion on a year-on-year basis, while revenue fell to RM2.12 billion from RM3.11 billion on the back of normalising demand.

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Top Glove shareholders approve US$473 million Hong Kong listing plan