By Liz Lee KUALA LUMPUR, Nov 24 (Reuters) - Malaysia stated
By Liz Lee
KUALA LUMPUR, Nov 24 (Reuters) – Malaysia stated it might shut down some factories of High Glove Corp TPGC.KL for COVID-19 screening and quarantine after greater than 2,000 staff on this planet’s greatest rubber glove maker examined optimistic for the illness.
High Glove’s shares had been down as a lot as 7.5% by late morning after the federal government stated 28 manufacturing unit buildings shall be shut in phases, though it didn’t present a timetable.
The corporate, which instructions 1 / 4 of the worldwide latex glove market, has racked up document income this 12 months on sky-rocketing demand for its merchandise and protecting gear, because of the pandemic. Regardless of Tuesday’s stoop, its shares have surged over 4 fold this 12 months.
Malaysia itself makes just below two thirds of the world’s rubber gloves, based on the Malaysian Rubber Glove Producers Affiliation. Hartalega Holdings HTHB.KL and Supermax Corp SUPM.KL are the opposite two high glovemakers within the nation.
Malaysia’s Well being Ministry reported a pointy rise in instances within the space the place High Glove factories and dormitories are situated, with 2,453 staff testing optimistic for the virus, out of 5,767 screened.
High Glove runs 47 factories throughout Malaysia, Thailand, China and Vietnam, with 36 of them producing gloves. Europe and North America are its greatest markets.
In a inventory trade submitting on Monday, High Glove stated it had quickly stopped manufacturing at 16 of the 28 services since final Wednesday, with the steadiness of 12 services working at a lot decreased capacities.
The corporate didn’t instantly reply to an electronic mail from Reuters searching for particulars, together with the affect on manufacturing.
MIDF Analysis analyst Ng Bei Shan stated in a be aware that the closures will scale back manufacturing capability by 50%, including {that a} two-weeks closure might damage web earnings by 4% in fiscal 2021 if common promoting costs stay the identical.
Nonetheless, tightened provide may enhance costs, cushioning the affect, she stated. Ng stated the closures had not but affected the corporate’s orders and that she was sustaining her earnings estimates for fiscal 2021.
“The event of the short-term closure of its services in levels continues to be fluid. As such, the precise affect to High Glove’s full-year earnings could also be arduous to determine at this level,” she stated.
Final week, the federal government ordered 14-day curbs by way of Nov. 30 in components of a district about 40 kms (24.eight miles) west of the capital Kuala Lumpur, the place High Glove factories and dormitories are situated.
Malaysia’s high rubber glove makers have seen share costs surge in 2020 as world demand for rubber gloves explodedhttps://tmsnrt.rs/3m1c030
International rubber glove demandhttps://tmsnrt.rs/2TPkzlj
(Reporting by Liz Lee in Kuala Lumpur; Writing by Sayantani Ghosh; Enhancing by Tom Hogue, Neil Fullick and Raju Gopalakrishnan)
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