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KUALA LUMPUR (June 29): Rubberex Corp (M) Bhd, whose shares have skyrocketed by over 450% this year, reported a jump of 4.7 times in its first-quarter net profit to RM9.26 million, from RM1.96 million a year ago, thanks to higher demand for gloves amid the Covid-19 pandemic.

Earnings per share for the quarter ended March 31, 2020 (1QFY20) rose to 3.67 sen from 0.78 sen previously.

In a filing today, the group also said revenue increased 31.7% to RM66.43 million from RM50.46 million previously.

“The strong performance in the quarter was mainly driven by the nitrile disposable glove division which saw an unprecedented surge in demand attributable to the Covid-19 pandemic,” it said.

Rubberex said it remains focused on its nitrile disposable glove division, which is currently operating at full capacity.

According to the group, the favourable performance is expected to continue for the rest of 2020 as order books for the existing nitrile disposable glove lines have been filled until 1QFY21.

It added that the movement control order (MCO) had temporarily halted operations across many industries, and this caused delays in the group’s next planned capacity expansion, which had now been rescheduled for 4QFY20.

Shares in Rubberex peaked at their all-time high of RM4.54 on June 1. The counter closed at RM2.98 today, giving it a market capitalisation of RM826.7 million.

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