KUALA LUMPUR (Nov 25): Top Glove Corp Bhd spent another RM49.96 million on buying back its own shares today, the 12th consecutive trading day it has indulged in the exercise.

The 7.51 million shares were purchased at between RM6.63 and RM6.73 apiece, according to the group’s filing with the stock exchange.

This raised the total it has spent on the exercise since September to RM1.13 billion, of which RM771.68 million was spent this month, and RM355 million in September.

The sum is equivalent to 60.42% of Top Glove's RM1.87 billion net profit for the financial year ended Aug 31, 2020 (FY20). It also represents 93.39% of its cash and cash balances as at the end of FY20, which amounted to RM1.21 billion. Top Glove also has RM1.67 billion worth of investment securities.

In a virtual conference today, Top Glove executive chairman Tan Sri Dr Lim Wee Chai said the share buyback was a “good management recommendation”.

According to Lim, Top Glove’s current net cash position is at about RM2 billion, after the group spent some RM1 billion on the buybacks over the last three months.

He also said that the glovemaker’s estimated dividend yield will be more than 6% in FY21 because the group is expected to do well amid continued strong demand for rubber gloves due to the Covid-19 pandemic.

Top Glove had declared for 4QFY20 a dividend of 8.5 sen a share, which brings cumulative full-year dividend payout to 11.83 sen a share.

Based on Top Glove’s closing share price of RM6.65 today, the 11.83 sen payout translates into a dividend yield of 1.78%.

Meanwhile, the Employees Provident Fund said today it has disposed of 9.15 million Top Glove shares, reducing its holding in the group to 525.15 million shares or a 6.53% stake.

Top Glove’s share price closed 15 sen or 2.21% lower at RM6.65 today for a market capitalisation of RM54.5 billion. It was the only one among the four big listed glovemakers to end the day in the red.

Year to date, however, Top Glove has risen 329% from  RM1.55 on Jan 2.