There’s no denying it.
The pandemic has sharply increased the demand for rubber gloves for the healthcare industry.
And one of the biggest beneficiaries of this increased demand is none other than Top Glove Corporation Berhad (SGX: BVA).
The Malaysian glove manufacturer is the world’s largest nitrile and rubber glove manufacturer and has seen demand for its products skyrocket this year.
The group’s share price has also more than quadrupled year to date, as revenue and net profit hit new all-time highs.
The demand has been so strong that the business cannot fill orders quickly enough, resulting in lead times extending up to 510 days.
On the face of it, investors may conclude that Top Glove is confronted with a happy problem.
The group is aggressively ramping up its production capacity to meet burgeoning demand.
The problem of insufficient supply has just been exacerbated by the temporary closure of some of...