[TOP GLOVE CORP BHD：F41工厂是集团在越南的第一家工厂，预计将于2020年10月投入生产，其10条生产线的初始生产能力约为24亿只手套。集团将在2021财年至2026财年的未来6年拨出80亿令吉的资本开支，这将为他们提供1000亿只额外的手套产能]
它仍然是MSCI全球标准指数，富时大马隆综合指数和道琼斯可持续发展指数（DJSI）新兴市场的成分股。该公司继续积极与美国海关边境和保护局合作，以加快废除Withhold Release Order (WRO)，并为此取得了良好进展。
James Ng Stock Pick Performance:
Since Recommended Return:
a. FRONTKEN CORP BHD, recommended on 12 Aug 18, initial price was RM0.715, rose to RM3.41, dividend RM0.052, in 2 years 1 month 5 days, total return is 384.2%
b. TOP GLOVE CORP BHD, recommended on 1 July 18, initial price was RM12.14, rose to RM46.74 adjusted, dividend RM0.52, in 2 Years 2 months 16 days, total return is 289.3%
c. MI TECHNOVATION BERHAD, recommended on 2 Jun 19, initial price was RM1.67, rose to RM6.05 adjusted, dividend RM0.055, in 1 Year 3 months 15 days, total return is 265.6%
d. CHIN HIN GROUP BHD, recommended on 2 Feb 20, initial price was RM0.57, rose to RM1.39, dividend RM0.01, in 7 months 15 days, total return is 145.6%
e. OPENSYS M BHD, recommended on 24 May 20, initial price was RM0.355, rose to RM0.865, dividend RM0.005, in 3 months 24 days, total return is 145.1%
f. INTA BINA GROUP BHD, recommended on 26 Apr 20, initial price was RM0.19, rose to RM0.37, in 4 months 22 days, total return is 94.7%
g. KAREX BHD, recommended on 20 Oct 19, initial price was RM0.445, rose to RM0.76, dividend RM0.015, in 10 months 28 days, total return is 74.2%
h. PROLEXUS BHD, recommended on 25 Aug 19, initial price was RM0.455, rose to RM0.67, dividend RM0.003, in 1 Year 23 days, total return is 47.9%
i. DESTINI BHD, recommended on 24 Sep 19, initial price was RM0.20, rose to RM0.29, in 11 months 24 days, total return is 45%
我为想从马来西亚股票市场赚钱的读者提供STOCK PICK服务。想订阅我的邮件以从股票市场获取良好回报的人，可以通过jamesngshare@gmail.com 或我的FB页面与我联系。
Whatsapp : 011 - 15852043
请订阅James的股票投资James Share Investing的Youtube频道：https://www.youtube.com/c/JamesShareInvesting
Facebook Group: https://www.facebook.com/groups/jamesinvesting
这个是我的TELEGRAM Group链接: https://t.me/joinchat/LhwHNhdU1fDgxrSafTrTiw
[TOP GLOVE CORP BHD: Factory F41 which is the Group’s first factory in Vietnam, is expected to come onstream in October 2020, the initial production capacity for which is approximately 2.4 billion pieces of gloves from its 10 production lines. The Group has earmarked RM8 billion for CAPEX over the next 6 years from FY2021 to 2026, which will provide them with additional capacity of 100 billion pieces of gloves]
For the quarter ended 4QFY20, Top Glove attained the highest ever quarterly Sales Revenue of RM3.11 billion, representing an increase of 161% compared with 4QFY2019. Profit Before Tax and Profit After Tax surged by 2,095% to RM1.62 billion and 1,692% to RM1.33 billion respectively. Meanwhile, Sales Volume grew by 43% versus 4QFY2019.
The Company delivered an impressive results for its full financial year 2020. Sales Revenue for FY2020 amounted to RM7.24 billion, up 51% from that of FY2019, while Profit Before Tax (PBT) and Profit After Tax also soared to RM2.30 billion and RM1.90 billion, up 443% and 417% from the previous financial year. Sales Volume also grew by 17% versus FY2019.
The tremendous growth stemmed from a global surge in demand for gloves on the back of the COVID-19 pandemic. 4QFY2020 demand growth was especially strong in Asia, Western Europe and Eastern Europe rising by 110%, 73% and 64% respectively compared with 4QFY19. Most robust was demand for nitrile gloves which grew by 31% year-on-year, while natural rubber examination gloves also saw growth of 7% versus the corresponding period in FY19. Reflecting market demand, average selling prices (ASPs) were also adjusted upwards.
The Group’s improved profit was also attributed to productivity enhancements which it continued to embark on, while the Group’s utilisation levels which remained at close to 100% amplified production efficiency and reaped superior economies of scale. High utilisation helped lower overheads significantly, notably the cost of labour and natural gas.
Further contributing to the phenomenal results was Aspion with a Profit Before Tax of RM139.9 million, as the Group started to reap the fruits of its acquisition. The additional capacity provided also helped position Top Glove to meet the upturn in glove demand. Nitrile latex price decreased 13.3% from USD1.13/kg to USD0.98/kg.
To reward its 57,000 public shareholders following the Group’s remarkable performance, the Board recommended a final dividend of 8.5 sen per share, amounting to a payout of approximately RM691.8 million. This brings the total FY2020 dividend payout to 11.8 sen per share, amounting to a total payout of approximately RM961.2 million. The total dividend of 11.8 sen represents an increase of 9.3 sen or 373% over FY2019, which is a net profit payout ratio of 51%.
The healthy cash flow generated by the excellent performance enabled the Group to lower borrowings, which led to a 33% savings in terms of interest cost. Over the course of FY2020, the net cash flow generated from operating activities was RM3.17 billion compared with RM0.53 billion in FY2019, an impressive increase of 500%. This has considerably strengthened the Group’s financial position, which enabled the Group to fully settle its syndicated loan of RM654 million during the year. As at 31 August 2020, the Group was in a net cash position of RM2.34 billion, in turn allowing the funding of ongoing organic capital expenditure, dividend payment, future M&As as well as the acquisition of land bank for business expansion.
For the 4QFY2020, the Group’s Sales Revenue was RM3.11 billion, up by 84%, with growth in Sales Volume (Quantity Sold) of 5% versus 3QFY2020. Meanwhile, Profit Before Tax and Profit After Tax surged by 285% to RM1.62 billion and 279% to RM1.33 billion respectively.
Top Glove will continue to expand its capacity to ensure it is well-positioned to fulfil global glove demand, which is expected to grow from a pre-COVID level of about 10% per annum, to about 15% per annum post-COVID, on the back of increased usage in both the medical and non-medical sectors, as well as heightened hygiene awareness. Notably, Factory F41 which is the Group’s first factory in Vietnam, is expected to come onstream in October 2020, the initial production capacity for which is approximately 2.4 billion pieces of gloves from its 10 production lines. The Group has earmarked RM8 billion for CAPEX over the next 6 years from FY2021 to 2026, which will provide them with additional capacity of 100 billion pieces of gloves.
Given the present business climate, increased M&A opportunities are also likely to present themselves, thus enabling the Group to expand faster via the inorganic route, in addition to the organic expansion being pursued. In term of market capitalisation, Top Glove secured its position as the 2nd largest company on Bursa Malaysia and the 9th largest company on SGX, with a market capitalisation of RM68.6 billion and SGD22.6 billion as at 15 September 2020.
It also remains a member of the MSCI Global Standard Index, FTSE Bursa Malaysia KLCI Index and Dow Jones Sustainability Indices (DJSI) for Emerging Markets. The company continues to actively engage with the U.S. Customs Border and Protection towards the expeditious upliftment of the Withhold Release Order (WRO), for which it is making good progress.
The outlook for the company and glove industry remains very promising. With COVID-19, Top Glove estimates that glove demand will grow by 20% per annum in 2020, 25% in 2021 and 15% post-COVID. The continuous increase in sales orders from 195 developed and developing countries across the world, coupled with rapid growth in capacity and significant improvements in productivity through technology augurs well for the Group’s results going forward.
Notwithstanding news of several promising vaccines in the pipeline, glove demand remains at a supernormal level, as gloves will still be required even when a vaccine becomes available. The Group’s monthly order book has seen a significant rise of about 150% from pre-COVID days while lead time (delivery) has gone up from about 40 days to as much as about 400 days presently. The exceptionally strong demand coupled with higher ASPs bodes well for the Group’s results in the coming quarters. The Group unprecedented performance underlines the effectiveness of ongoing technology-driven improvement initiatives, which focus on quality and cost efficiency, which have enabled the Group to meet the increase in glove demand.
I wish to share my strategy to readers, hope that they can perform well after reading this. I am using Fundamental Analysis:
the forecasted growth of a company must over 14% per year
I wish to convince readers to learn FA in order to make money from stock market.
I am providing STOCK PICK SERVICE for readers who want to make money from Malaysian stock market. Those who want to subscribe to my mailing list to achieve a good return from stock market, you can contact me at firstname.lastname@example.org or PM me in my FB page.
This sharing is purely a discussion and analysis of the sector, buying or selling at your own risk. Please Like and Share this post. Final decision is always yours, thank you.