Shares & Derivatives
Top Glove: 4 management concerns that caught my attention over the past year
By The Fifth Person  •  September 24, 2021
The world’s largest rubber glove manufacturer, Top Glove, had an extraordinary year. It is one of the few companies that benefited from the COVID-19 pandemic as a result of increased demand for rubber gloves. Its revenue and net profit increased by 50.7% and 380.6% year-on-year respectively in 2020. On a nine-month basis, revenue and net profit even surged by 246.2% and 1,163.1% year-on-year respectively in 2021. Despite its stellar financial performance, some of its management practices in the past year have caught my attention. 1. Share buybacks The management embarked on a series of share buybacks after the company’s share price started losing steam in September 2020. The share price nosedived from RM9.60 — the highest closing price Top Glove has ever recorded since its IPO — to a 52-week low at RM3.40 in September 2021. This represents a drop of 64.6%. In terms of market capitalisation, about RM50 billion was wiped out from the market over the course of a year....
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By The Fifth Person
The Fifth Person believes in spreading a message that financial literacy and sound investment knowledge can help people around the world achieve financial independence and lead better lives for themselves and their loved ones.
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