The Top Glove Corporation Berhad (NYSE: TOPG) is a Malaysian manufacturer of rubber gloves. They also produce dental dams and face masks. They have 50 manufacturing facilities throughout Malaysia, Thailand, and China. Currently, the company is the world’s largest manufacturer of rubber gloves, but they also manufacture products for the medical industry.
A Top Glove share represents a small ownership stake in the entity. To determine the value of a Top Glove share, divide the number of outstanding shares by 100. The value of each share represents the potential income that investors can get from owning Top Glove stock. In addition to dividend income, the shares also give their holders corporate voting rights.
Top Glove faces a number of challenges, including high labor costs and higher natural gas prices. However, the company expects to pass through these costs as it ramps up its expansion plans. However, it will take some time for these efforts to pay off. In the meantime, continued low raw material prices should help the company in the short-term. In addition, the company expects to benefit from a stronger USD.
Top Glove’s recent net loss was a disappointing surprise and the stock was punished too harshly. The stock is now trading at a significant discount to historical levels. Despite this, management’s decision to raise prices could lead to increased margins. Continued buying activity and a renewed buyback program could also be catalysts for higher shares.