Top Glove overtakes TNB as third-biggest listed company

Worldwide demand for rubber gloves has driven up the share price of Top Glove. (Bernama pic)

KUALA LUMPUR: The world’s largest glove manufacturer, Top Glove Corporation Bhd, has emerged as the third biggest company on Bursa Malaysia, overtaking Tenaga Nasional Bhd, as the company’s market capitalisation increased to RM64.73 billion as of the close of trading today.

At 5pm, Top Glove’s share price closed at 9% higher, up RM2.08 higher at RM24, with 32.6 million shares traded.

The counter hit its all-time high of RM24.50 today, and is behind only Maybank (RM88.7 billion) and Public Bank (RM71.9 billion), the two biggest stocks in terms of market capitalisation.

TNB’s market value was RM64.58 billion at the close of trading today.

Top Glove chairman Lim Wee Chai said the company hopes to build two factories every year to keep pace with the global demand for rubber gloves amidst increased usage in the medical industry and heightened hygiene awareness among people due to Covid-19.

He said the company currently has 45 factories, of which 34 are glove factories with 700 production lines that have the capacity to make a total of 78.7 billion pieces of gloves per annum.

Top Glove also remains open to mergers and acquisitions, joint-ventures and diversification opportunities.

In a note today, Kenanga Research said it has raised Top Glove’s target price to RM32, taking into account the management’s guide that the average selling price of gloves in August is expected to be 30% higher.

MIDF Research said it expects Top Glove’s production to grow by 36% from 73.8 billion pieces in the third quarter of 2020 to 100.4 billion pieces in the fourth quarter of 2021.

It upgraded Top Glove to a “Buy” from a “Neutral” with a revised target price of RM26.12 per share from RM17.30 previously.

AmBank Research meanwhile believes that the bullish momentum in Top Glove’s shares will continue to ascend toward the next technical TP of RM24.82 and RM26.62 as the stock has surged above the resistance level of RM20.16, with high trading volume.

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