Rubberex Corp (M) Bhd's net profit for the third quarter ended September 30, 2020 (3QFY20) jumped up to 13 times to RM39.52 million compared to RM3.11 million in the same quarter last year due to increased demand for nitrile gloves due to pandemics Covid-19.
Revenue for 3QFY20 also jumped 75% to RM109.03 million from RM62.23 million in the previous year.
The company was quoted by Bernama as saying that the increase in revenue was due to the disposal of nitrile disposable gloves because the gloves produced were considered important products to be used by the health and medical sectors in the fight against the Covid-19 pandemic.
For the accumulated nine months ended 30 September 2020, Rubberex's net profit increased by 860% to RM71.74 million from RM7.47 million in the previous year while the company's revenue increased 57% to RM263.56 million from RM168.33 million previously .
On prospects, Rubberex said, the company remains focused on the nitrile disposable gloves section which is now operating at full capacity.
"The good performance of this group is expected to continue until the end of this year because orders to buy and sell based on the price level for existing nitrile gloves have been full until the second half of 2021.
"The next capacity expansion is on track and is projected to contribute to revenue in the fourth quarter of 2020 and the next quarter," according to the company.
At 12.30pm, Rubberex shares rose 14 sen or 7.41% to RM2.03, making the company's market capitalization worth RM1.69 billion.
