Top Glove, the world's largest glove manufacturer, uploaded initial public offering documents on the Stock Exchange and applied for the first listing in Hong Kong. Top Gloves has been listed on the Malaysian Stock Exchange since 2001 and the second listing on the Singapore Exchange in 2016. If the Hong Kong listing is successful, the top glove will become a listed company in three places. The sponsor of the listing is China International Capital Corporation.
The top tier is the world's largest glove manufacturer, with sales in 195 countries and a total of 48 factories, including Malaysia, Thailand, China and Vietnam, according to preliminary IPO documents.
According to Frost Sullivan, the company's global market share in 2020 was 14.1%, 10% and 11.7%, respectively, in terms of sales revenue, sales and production.
The top glove group made a top profit of 7.71 billion ringgit, up 3.4 times year-on-year, and revenue of 16.361 billion ringgit, up 1.26 times year-on-year. The gross profit margin for the period reached 67.9%, compared with 39.4% and 18.4% for the previous two years, respectively.
The company said frankly that it believes that the average price of glove products peaked at the beginning of this year, and expects the average price to fall sharply in fiscal year 2022 (September this year to August next year) and thereafter, as the market is due to the epidemic and new production capacity is on line. and technological progress and higher productivity will lead to lower production costs. At the same time, rising demand from the epidemic has led existing and new competitors, especially from China, to build, debug and price new capacity. These factors and the impact of lower average selling prices are likely to lead to lower revenue growth, profitability and gross profit margins in future periods than in fiscal years 2020 and 2021.
The proceeds raised by the company will be used for the construction of six new factories, expansion of existing factories, upgrading and modification of existing production lines in the next two years, research and development in the next five years, upgrading of various software systems and acquisition of information technology.