First Single Tier Interim Dividend of 7 sen (net)

EX-date 27/06/2013
Entitlement date 01/07/2013
Payment date 18/07/2013

Top Glove posts lower Q3 pre-tax profit

Top Glove Corporation Bhd has registered a lower pre-tax profit of RM43.373 million in the third quarter ended May 31, 2013, compared to RM63.683 million posted in the same period last year.

The world's largest rubber glove producer however recorded a slightly higher revenue of RM604.082 million during the quarter compared to RM603.295 million in 2012, the company said in a filing to Bursa Malaysia today.

For the nine-month period, the company posted a pre-tax profit of RM175.145 million on the back of a turnover of RM1.765 billion.

It said latex prices declined by 20.5 per cent from an average of RM7.52 per kilogramme in the third quarter of 2012 to RM5.98 per kg in the third quarter of 2013.

Meanwhile, nitrile prices fell by 27.5 per cent from an average of RM5.30 per kg in third quarter of 2012 to RM3.84 per kg in the third quarter of 2013.

Moving forward, the group, which has a total of 470 lines nitrile glove production lines to date, will increase them to 583 lines by April 2014, further boosting production capacity to 47.9 billion pieces of gloves per annum from 41.1 billion pieces

Top Glove to increase investment to RM3.8bil

Its chairman, Tan Sri Lim Wee Chai, said this would include the cost of its 30,772-hectare rubber plantation venture in Sumatera, Indonesia.

He said its RM3.8bil investment plan will comprise RM3.1bil for the construction of 40 new factories, RM0.1 billion for investment in new information technology, RM0.15 billion for corporate building and RM0.45 billion for plantation.

Lim said Top Glove will have 25 factories by April next year with annual capacity of 47.7 billion pieces.

Today (23/9/13) closed at RM6.25, up 1c

Trading in Top Glove suspended on Friday

Trading in Top Glove Corporation Bhd will release its fourth quarter results for the period ended Aug 31, 2013 on Friday.

A Bursa Malaysia Securities circular said trading in the securities of the glove maker would be suspended with effect from 9am on Friday.

Top Glove FY13 earnings dip 3.4% to RM195.85mil

Top Glove Corporation Bhd posted net profit of RM195.85mil in the financial year ended Aug 31, 2013 from RM202.27mil a year ago due to unrealised forex losses incurred on the fair value of its US Dollar denominated foreign exchange contracts.

It announced on Friday its revenue was almost flat at RM2.313bil compared with RM2.314bil due to a lower average selling price on the back of declining raw material costs.

For the fourth quarter ended Aug 31, 2013, its earnings fell 25.3% to RM47.77mil from RM64.03mil. Its revenue fell 9.7% to RM548.16mil from RM607.32mil. Earnings per share were 7.70 sen. It proposed final single tier dividend of 9.0 sen per share.

Top Glove said the group was able to maintain a dividend payout equivalent to the preceding year as its cashflow was still healthy.

“After factoring in acquisitions and capital expenditure of RM311.8mil and interim dividend payment, Top Glove still maintains a positive net cash position of RM158.4mil as well as a healthy balance sheet,” it said.

Its chairman Tan Sri Lim Wee Chai remained upbeat, commenting that: “During this challenging period, we have maintained commendable operating profit and volume growth. Hence, we have good reason to look forward to better times ahead”.

“Moving forward, we will ensure we stay ahead of market trends, responding swiftly to changes for betterment through automation, research and computerisation.”

Lim said the group would continue to increase the number of nitrile glove production lines, in line with the growing demand.

Top Glove said the second phase of expansion for Factory 27, six production lines will be added by January 2014.

Work on Top Glove’s newest plant, Factory 29 was set to ready by June 2014. This will increase the Group’s current total of 498 production lines to 520, further boosting production capacity from 43.9 billion to 46.1 billion pieces of gloves per annum.

Top Glove to privatise Singapore unit

Top Glove Corp Bhd has launched a takeover offer for its Singapore-listed 79.77%-owned unit Medi-Flex Ltd. The buyer intends to delist Medi-Flex upon completion of the exercise.

In a statement to Bursa Malaysia, Top Glove said the firm, via wholly-owned unit Top Glove Sdn Bhd, plans to acquire the remaining 20.23% stake in Medi-Flex at 15 cents (S$0.15)/(RM0.38) each.

"The trading liquidity of the Medi-Flex shares on the SGX-ST in the past year, has been generally thin.

"In addition, in the last four years, Medi-Flex has not carried out any exercise to raise funding on the SGX-ST. Medi-Flex is unlikely to require access to Singapore capital markets, to finance its operations in the foreseeable future. Accordingly, it is not necessary for Medi-Flex to maintain a listing on the SGX-ST," Top Glove said.

Top Glove plans RM200mil capex

Top Glove Corp Bhd plans a capex of about RM200mil for its financial year 2014 (FY14) to be allocated for its new capacity, the foray into rubber planting as well as the building of a new corporate headquarters.

Executive director Lim Cheong Guan said the capex for FY14 was broken down to RM120mil for the capacity expansion, RM30mil for its rubber plantation in Sumatera, Indonesia and RM50mil for the office tower.

“We spent more capex in 2013 largely due to acquisitions of land in Indonesia and building four new factories,” Lim said. For FY13, the group invested RM311.8mil.

Currently, the group has 498 production lines in 24 factories.

By June 2014, it aims to have 25 factories running with 520 lines, with a production capacity of 46.1 billion pieces per annum.

Of that, Top Glove targets to expand its nitrile glove production to 17 billion or 18 billion pieces per annum next year, which managing director KM Lee said was “fairly close to some of the other big nitrile glove players in the market”.

As for the plantations, if Top Glove begins the planting operations this year, it would take about seven years for the trees to mature and earnings contribution is only expected in 2020.

The group will start with 5,000 ha first out of the 30,000 ha planned.

Single Tier Final Dividend of 9 sen per share

EX-date 08/01/2014
Entitlement date 10/01/2014
Payment date 24/01/2014