KUALA LUMPUR (November 25): The selling pressure on Top Glove Corp Bhd shares seems to have eased so far today, after the stock price fell 3% compared to yesterday’s 7% drop as investors measured the company ‘s updates on the impact. from a temporary halt in stages of its production facilities within Meru in Klang, Selangor to prevent the spread of the Covid-19 pandemic.
“We estimate that they will affect about 3% of our FY21 sales revenue,” Top Deaf said in yesterday’s submission of the document in Malaysia to Bursa.
During the break in Bursa at 12:30 today, the share price of Top Gloss decreased by 14 cents or 2% to 6.66 RM for a market capitalization of about 54.73 billion RM.
The counter, which changed hands on about 36 million shares, combined the losses after falling by 20 cents or 3% to 6.60 R. The highest share price so far was 6.88 RM.
Yesterday, the share price of Top Gloss closed 55 cents or 7% at 6.80 RM.
After markets closed at 5pm yesterday, Top said in a paperwork submitted to Bursa that its 16 Meru facility, Klang, had temporarily suspended production since November 17, 2020.
Top Glove said that the balance of 12 facilities is currently operating at about 20% capacity and will be temporarily closed in phases of testing Covid-19 employees and complete remediation of the site before reopening.
“As part of our risk management strategy, Top Glove factories / facilities are diverse in location and countries with business continuity plans. The impact of this temporary disruption is expected to cause some delay in our delivery schedule of about two to four weeks for those facilities affected. However, we do not expect a penalty for this delivery delay. “We estimate that they will affect about 3% of our FY21 sales revenue.”
Authorities carried out an order for increased traffic control led by Covid-19 (EMCO) from November 17th to 30th at Top Glow’s specific dormitories in Meru.
Speaking to Top Glove yesterday, the company, referring to EMCO’s impact on its production capacity, said the 28 plants affected in Meru accounted for about 50% of the bracelet maker’s total production capacity.
“As a mitigation measure, the company has rescheduled its production plan for non-affected facilities to produce those very urgent orders,” Top Glove said.
According to updates on the Top Glove website, the world’s largest manufacturer of rubber gloves in terms of output capacity can produce up to 90 billion pieces of gloves a year from October 2020 through its 36 bracelet factories.