Top Glove's share price continued to plunge to its lowest level since May 2020 which has now recorded a fall of around 5.88% to RM2.88 in the trading session on Bursa Malaysia today.
According to Bernama, Top Glove's net profit has declined to RM607.95 million in the fourth quarter of financial year 2021 from RM1.18 billion achieved in the same period last year.
The company's revenue declined RM2.12 billion from RM3.11 billion.
Top Glove says the average selling price of gloves (ASP) has fallen lower following the normalization of demand following the implementation of increasingly widespread vaccination rates around the world.
However, Top Glove remains optimistic about the industry’s prospects and is confident that glove demand will maintain its upward trend especially with the emergence of new variants.
AmInvestment Bank Research expects the group’s sales volume to soar in the first quarter of financial year 2022 after the ban on exporting gloves to the US was lifted.
Meanwhile, for the financial year ended 31 August 2021, Top Glove's net profit recorded a 349% jump to RM7.87 billion compared to RM1.75 billion in financial year 2020.
The company's revenue for 2021 also increased 127% to RM16.4 billion from RM7.24 billion with the group's net cash position remaining stable at RM2.05 billion.
Judging by the aforementioned alerts, the performance has been driven by strong glove demand as well as the rise in ASP driven by the Covid-19 pandemic at this point.
