TopGlove Corp. AGM was held at 11.30am of 6/1/2016 in Grand Ballroom TopgGlove Tower
TopGlove's products, ranging from medical use, industrial use, f&b use to household use. Notice that the hand formers are made from ceramics and they're fragile (some uncle accidentally smashed it to the ground and it broke, hell yeah )
The event was kicked start by the presentation by MD Mr Lee regarding the performance of company in FY2015, recorded a total profit of RM281.2m , about 53.2% improvement compared to FY2014
For FY2016 Q1, the total profit was RM128.3m which is almost HALF (45.6%) of FY2015 profit.
As what's stated in the latest quarter report, the Board implicated the sharp improvement of their performance to the
a) improvement in Nitrile Glove Production
b) improved productivity due to better staff efficiency and more automation
QUESTIONS asked by shareholders
1) In the balance sheet ,TopGlove has an investment securities amounting to RM 395m, what kind of investment is that and do TopGlove has any resources to refer?
-> they have a team of expert(manager) in full time, incharge for managing their investment and following their guideline, so far they only invest in Foreign Institutional Bond which bond yield is ranging from 5-10% p.a It was claimed that rationale of investing in these bonds is due to the Foreign Insti Bond is more regulated and hence the risk is low. TopGlove has good reputations among bankers and thus they enjoy lower rate charged by bankers.
-> In Q4 FY2015 the investment securities was standing at amount of RM 528m, due to the appreciation of USD , they sold part of their investment and convert back to cash.
2) How's the Lukut Plant's Utilization?
-> the plant was acquired from a local loss-making glove companies, it is very spacious and now they're upgrading it and utilizing the space to install more machines and it will be used for nitrile glove production.
3) The Group is having big pile of cash, how to utilize ?
-> to support TopGlove's dividend payout policy of 50%
-> for capital expenditure purpose
-> to ACTIVELY look for more merger & aquisition targets
4) What's the plan for unused land beside TopGlove Tower? Rumours of venturing into property biz
-> TopGlove bought the land for RM110 /sqft few years ago and now the price standing at RM380 /sqft
-> So far TopGlove has NO PLAN to venture into property developing business as now their main focus in on GLOVE making, but in order to supplement and maintain the DOUBLE DIGIT GROWTH in the far future, the company will THINK OUT OF THE BOX and DIVERSIFY into other businesses.
"Human can stop growing but a company cannot ; A person can't live for 200 years but a company can"
by Tan Sri Dr Lim Wee Chai
5) Forex loss found in financial statement of the annual report
-> 97% of sales denominated in USD
-> TopGlove did hedging of < 1month , they dont do mid term hedging, overall still profit from forex as they use their USD receivables to repay borrowings
-> the forex translation gain in comprehensive income is due to the asset appreciation in foreign country likke Thailand
6) Earning projections ?
-> Remains confident because of improved productivity due to better staff efficiency and more automation
-> "Customers pay us 100%, so our staffs also work 100% to fulfill the customers' needs"
7) Any plans on the Ratio of Nitrile to Rubber-made Gloves?
-> they will still increase the production of nitrile gloves ( if I'm not mistaken I heard 50% of total production !)
8) Gas price is increasing, any impacts on earning?
-> cost of fuels only accounts for 10% of the production cost, not to be worry as it could be off set by lower raw material price which is about 50% of production cost-> same reason for raw materials
Nitrile latex price has dropped to multi-year low since 2011
9) Could u provide an update on Indonesian Plantation Project?
-> TopGlove has 30k hectares plantation land in Bangka Belitung Indonesia bought with price of RM 25m in 2011
-> still looking for JV partners for rubbertree plantation
The AGM ended at 12.40pm and then followed by EGM where the bonus issues and Employee Share Grant Plan were approved.
All the shareholders were served with traditional Chinese style lunch with Chinese Orchestra Performance
yummy!
TOPGLOV (7113) - AGM 2016 updates 顶级手套 股东大会 2016
http://klse.i3investor.com/blogs/zefftan/89308.jsp
TOPGLOV, TOPGLOV (7113), 7113, EN7113, KLSE:TOPGLOV, Investing, zefftan
