Introduction To Top Glove Corporation Berhad Analysis

Table of Content

Top Glove Corporation was Started In 1991 In the Beginning Top Glove Company had merely 1 Factory 3 Production lines and 100 Staff. but Now it Has Become the Most Successful and Largest Rubber Glove industry ensuing in 25 mills which they had merely 1 one when they started and now has 470 Production lines and a capacity to bring forth 41. 1 Billion Gloves per Annum. Top Glove Corporation has more than 10 Branchs Not In Malaysia but has besides Spread In China and Thailand The Main Activities of Top Glove are Investment retentions and proviso of Management services. Top Glove are one of the largest latex baseball mitts. cyanide. surgical. family. Cleanroom. Vinyl and more types of baseball mitt Producer and meets High Quality Products and meets the Increasing outlooks of the International Top Glove Corporation was Listed 2nd In Malayan Bourse and within a twelvemonth It was promoted to the Capital metropolis of Malaysia Kuala Lumpur Stock Exchange ( Bursa Saham ) .

It consists Shareholder fund worth 1. 28Billion with an one-year turnover which is about 2. 31Billion as at fiscal twelvemonth ended 31 August 2012. Tan Sri Lim the Founder of Top Glove Achievements has A Huge Credit for Company’s Success Not Merely Tan sri Lim But the Highly Committed and Motivation of Board of Directors Together with 11000 Strong Work Force. Customers are the Important Factor for Top Glove Company their motivation is to Supply High Quality Products with low-cost cost and To Supply them the best client service. The Company is looking frontward To Invest IN R & A ; D IT and Automation to do certain to Better The Quality and Production Efficiency. Looking At the Future Top Glove’s Objective is to Capture 30 % of the Global Market portion by 2015. ( Top Glove. 2013 ) ( EMIS. 2013 )

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“We Strive to be the World’s Leading Industry with Excellent Quality Glove Products and Service enrich and Protect Human Lives” CORPORATE MISSION: “To Be World Class Glove Manufacturer by supplying top Quality merchandises withExcellent services through uninterrupted Improvements and Innovation” ( Top Glove. 2013 ) 1. 2 KEY EXECUTIVES

Wee Chai Lim ChairmanKim Meow LeeManaging DirectorCheong Guan LimExecutive DirectorSiew Bee TongExecutive DirectorArshad Bin AyubIndependent Non-Executive Director ( Company )


( Top Glove Corporation Berhad. 2012 )Lim Wee chai is a Malayan citizen aged 54 ; He was graduated in Bachelor of Science grade in natural philosophies from University Malaya and completed his maestro grade in concern disposal Sul Ross State University in Texas. United States. Lim wee chai was appointed as a president at top baseball mitt corporation on 4th September 2000. Top baseball mitt Corporation Berhad was started with merely 3 production lines under the Chairman lim bitty chai Leadership and visions top baseball mitt have become world’s largest gum elastic baseball mitt manufacturers and has captured 25 % of the universe market portion. The company now has more than 23 mills and 457 production lines in Malaysia and on the other counties which are Chinas and Thailand. The Production capacity is to bring forth 40 billion pieces of baseball mitts per annum. over 1000s of customer’s demand in more than 185 Countries. He has received 10 awards for his accomplishments success and part towards the Glove Industry ( Top Glove Corporation Berhad. 2012 )


Hartalega Berhad Manufacture and sell latex and Nitrile baseball mitts. The company’s latex and Nitrile gloves consists of scrutiny and Surgical. Laboratory. Clean room baseball mitts. atomic power works etc. It besides deals in retail and sweeping of baseball mitts. Property renting research and development of mechanization systems. Hartalega was established in 1988 with the vision to bring forth baseball mitts to protect the of import thing which is Life. Hartalega Used to be One line operation in the beginning but now it is one of the most largest Company with 53 Production lines. and a capableness to bring forth 12 Billion baseball mitts Per Year. Since the Start. Hartalega every individual operation is been dedicated to Tradition of Excellence. they are presenting the best quality through province of the art equipment. high quality system and dedicated workers their merchandises are high recognized all over the universe Hartalega Success is

Because of their loyal clients and Consistent betterments in quality of merchandises. dependable service with efficiency by the civilization of unfastened and honest attack to concern. Hartalega has Huge Market all over the universe which are in North America. Europe. Asia. Australia Malaysia Hartalega is the company which has produced a batch types of merchandises comparison of it’s rivals and they are first one who has produced it which are Polymer Coated Powder-Free Examination Gloves. Low Protein Latex Examination Gloves. Robotic glove depriving system which helps to deprive baseball mitts off from the production lines. foremost one to bring forth high-stress relaxation NBR Examination and Surgical baseball mitts. first industry to utilize oil Palm Empty fruit Bunches as biomass fuel to bring forth heat for production procedure and Many More merchandises which had produce 1st the Industry. Hartalega has earned a batch of Awards Because of their difficult work. dedication and motive. ( Hartalega. 2013 ) ( Businessweek. 2013 )


1. Kuan Kam HonExecutive Chairman and Managing Director2. Chuah Phaik SimIndependent Non-Executive Director3. Dato Mohamed ZakIndependent Non-Executive Director4. Kuan Mun KengNon-Independent Executive Director5. Kuan Mun LeongNon-Independent Executive Director6. Liew Ben PohNon-Independent Non-Executive Director ( Haralega. 2012 )

( Hartalega Holding Berhad. 2012 )


( Hartalega Holding Berhad. 2012 )

Kuan Kam Hon aged 65. Is the Executive president and Managing Director at Hartalega. he was appointed on May 7. 2007. Kuan Kam Hon is responsible for all concern strategic plannings and whole operations in the group including research and development. He started his Career in the building company named kuan Yuen & A ; Sons Company which was a well-known building company in 1970’s. in 1981 he formed Hartalega Sdn Bhd Under his leading Hartalega has now become a reputable manufacturers of latex baseball mitts in the industry in Malaysia and is public listed in Bursa Malaysia. He has created a set of Management with Higher criterions and encourages creativeness and invention to bring forth highly-skilled forces. ( Hartalega Holding Berhad. 2012 )


The gum elastic demand has been increased quickly high after the H1N1 Pandemic in 2010. Rubber glove industry is traveling to witness Lower demand as there is no Huge Disease found in Humans. Plants or Animals since last twelvemonth. Rubber Glove Industry wholly depends on its use on medical sector. Industry has been confronting recession clip to clip. Malaysia is the largest Manufacturer and exporter of Rubber baseball mitts at present. Malayan industry of gum elastic baseball mitts has high Demand all over the universe. Top Manufacturers of Rubber baseball mitts are. Top Glove. Supermax. Kossan gum elastic industry and Hartalega. Malayan Industry exports to the US. Europe. Latin America. China and India. Us is the largest Importer of Rubber Gloves as their outgo on Health Care has gone high as per centum of GDP Since 2000. UK and European States are following the same tendency of utilizing more hygienic merchandises.

And is expected for other states as good Demand for Rubber baseball mitts Have Increased in States like India. China and Brazil in the recent old ages as they are more concerned to their health care and wants to utilize hygienic Merchandises. Demand for lower-end powdery latex baseball mitts is high in developing states who are more cost witting which is cheaper than powder-free latex and nitrile baseball mitts. The Developed states such as US and Europe prefer to utilize Powder-free latex and Nitrile baseball mitts. ( Koncept Analysis. 2012 )


4. 1 High Demand OF GLOVES:

Rubber Glove Industry will be holding long term demand for their merchandises from the extremely developed Countries. Emerging economic systems may perchance drive high future demand as their population is increasing. they are more cognizant of the importance of hygienic merchandises in medical sectors as will be holding high demand of High quality of Healthcare merchandises and services. Health Care Expenditures is increasing for most developed Countries. which has increased demand for baseball mitts. which may impact addition in cost but still can be manageable. Gas and Labor cost are expected to be increase In 2013. but no certain if that can do a immense impact of Glove market ( Lee. 2012 )


Top 4 Glove Producers may non go M & A ; A Targets. Kossan Rubber industry may hold a opportunity of being such a mark if we pick among the four Largest Producers. The Rubber Glove Companies are increasing their production capacity to stay in the competition. Annual Capacity growing is expected to be approximately 18 % or 14. 2BN pieces in 2013 ( Lee. 2012 )


Rubber Glove Industries can confront assorted sorts of hazards which are as follows: 1. Rivals in this Industry have sharply expended their capacity plans this can ensue in an glut 2. Crisp instability in latex costs and foreign currencies ensuing in close term border squeezing 3. Political Hazard. domestic and regional. Glove manufactures beginning 50 % of their natural stuff from Thailand. Risk is low production of NR latex and lower supply at baseball mitt makers 4. Infrastructural bottle cervixs and Labor Shortages: Supply of Malaysia’s Natural Gas is reached its maximal point to the Glove industries and new allotments are expected to come. any hold in new allotment will go a immense job for Glove Industries for that they have to utilize alternate fuel for production with higher cost ( Michelle Foong. 2012 )



Profitability ratios shows that net income gaining capacity of a concern for the interest of clear understanding profitableness ratios classified into two classs general profitableness ratios and overall profitableness ratios. The gross net income border ratio ( or gross border ratio ) provides hints to the company’s pricing. cost construction and production efficiency. A low net income border ratio indicates that low sum of net incomes. required to pay fixed costs and net incomes are generated from grosss. ( Thukaram. 2007 ) . Top Glove Corporation gross net income border has been increased as comparison with the net income ratio in 2011 and 2012. 2011 it was 11. 44 % in 2012 its 16. 63 same goes for net net income border. but with less disbursals. Top baseball mitt Corporation net income earning capacity has been increased imposingly


20122011Gross net income border

Net net income Margin

Expenses border16. 63 – 9. 87 = 6. 76 %11. 44 – 6. 57 = 4. 87 %

5. 4 Liquid:

Liquidity ratios provides information on the clip construction of debt and the firm’s ability to run into its short term duty Current ratio is balance-sheet fiscal public presentation step of company liquidness. Current ratio indicates a company’s ability to run into short-run debt duties. The current ratio measures whether or non a house has adequate resources to pay its debts over the following 12 months. Quick ratio is viewed as a mark of a company’s fiscal strength or failing ; it gives information about a company’s short term liquidness. The ratio tells creditors how much of the company’s short term debt can be met by selling all the company’s liquid assets at really short notice. ( Emilio Colombo. 2006 ) . Liquidity ratios shows ability of the company to pay back its debts which top baseball mitt has improved from 3. 12:1 to 2. 95:1 in 2012


20122011Current ratio

Quick Ratio

5. 5 Efficiency:

Efficiency ratios step how expeditiously a steadfast uses its resources. The mean aggregation period shows the mean figure of yearss it takes your concern to roll up payment for gross revenues to clients on recognition. The histories collectible turnover ratio shows how rapidly your concern pays its measures and how frequently payables turn over during the twelvemonth. Tendencies in the histories collectible turnover ratio demonstrates how your concern handles its outgoing payments and can assist you measure the hard currency state of affairs of your concern. This efficiency ratios shows that top baseball mitt fixed plus turnover has been increased from 2. 9 in 2011 to 2. 93 % in 2012 debitors aggregation clip has besides slight more efficient compared to 2011 it was 47 yearss in 2012 it is 46 yearss meanwhile creditor payment is confronting more holds compared to old twelvemonth which was 39days in 2011 bend into 44days in 2012 ( Emilio Colombo. 2006 )


20122011Fixed plus turnover

Debtors aggregation

Creditor payment

Stock Employee turnover

5. 6 Capital Structure:

Capital Structure is a mix of a company’s long term debt. specific short-run debt. and common equity and preferable equity. The capital Structure is how a steadfast finances its overall operations and growing by utilizing different beginnings of financess. The involvement coverage ratio indicates the extent of which net incomes are available to run into involvement payments. A involvement screen ratio means less net incomes are available to run into involvement payments and that the concern is more vulnerable to additions in involvement rates.

Capital Structure20122011Interest Screen

Gearing ratio


Fiscal ratios are used to analyse company public presentation. Return of equities investors is much greater than that applied to unsecured bonds may be because this investing category have a immense hazard. and ordinary stockholder are the best group of investors for an organisations. The Price earning ratio for an organisation is used to compare the fiscal place of a company comparison to other organisations. this means the better fiscal place of a company is harmonizing to PE Ratios the lower hazards is for its investors and stockholders. Organizations which want to spread out their dividends will seek to over a big sum of their net incomes ; whereas organisations which have high hard currency retentions are able to pay higher dividends if they wish to. the relation between dividends and net incomes are calculated by dividend screen ( Woods. 1999 ) .



EPS0. 32770. 1829Gaining Output

Dividend Payout

Dividend Retention1 – 0. 478 = 0. 521 – 0. 59 = 0. 41


These figures shows that Hartalega’s gross net income border was 37. 15 % In 2011and it is Decreased in 2012 to 31. 85 % . Net net income border is besides decreased in 27. 9 % 2012 which was 33. 4 % in 2011 it tell that company is underachieving compared to last year’s public presentation. But disbursals are decreased from 4. 75 % to 3. 95 %

Profitableness20122011Gross net income

Net Net income Margin

Expenses Margin31. 85 – 27. 9 = 3. 95 %37. 15 – 32. 4 = 4. 75 %

6. 2 Liquid:

This Table shows Liquidity of Hartalega Company their ability to pay their debts is Increased compared to 2011 which was 3. 63:1 Now increased to 4. 42:1 in current ratio. If we measure that in speedy ratio it besides shows anAddition from 2. 81:1 to 3:28

Liquid20122011Current Ratio

Quick Ratio

6. 3 Efficiency:

This tabular array shows The Figures how Efficiently hartalega corporation is utilizing their resources in 2011 their fixed plus turnover was 2. 11 which is increased to 2. 45 % it tells us that and debitors aggregation period is decreased from 50 yearss to 46 yearss so they are roll uping their debts earlier compared to old twelvemonth and creditor period in besides decreased from 45 yearss to 35 yearss they are able to pay back their Creditors earlier than 2011 and stock turnover is besides increased from 51 yearss to 56 yearss. This tabular array tells us that hartalega is utilizing their resources really expeditiously

Efficiency20122011Fixed plus turnover

Debtors collection period

Creditor payment

Stock turnover

6. 4 Capital Structure:

Capital Structure20122011Interest Screen

Gearing Ratio




EPS0. 2765 pence0. 2618 penceGaining Output

Dividend Payout

Dividend Retention1 – 0. 43 = 0. 571 – 0. 29 = 0. 71


Rubber Glove industry has immense demand in market and in future it will be demanded even more Developed Countries and developing states are really concerned to utilize Hygenic merchandises in their medical sectors and so their medical attention outgos will be increasing the demand for Gloves will besides be increasing. As For Under developed Countries If there is a hope for them to Increase their Economy and they will besides be concerned to utilize hygienic merchandises like other Developed Countries demand for the Rubber Gloves will travel even higher. Malaysia has dominated the Rubber Glove Industry and Is the King of gum elastic baseball mitts. Top Rubber and latex baseball mitts fabricating companies are In Malaysia So there is a batch more competition with in Malaysia on this Business and all the companies are seeking to better their capacity top Glove Manufacturing companies In Malaysia are Top Glove and Hartalega which are executing highly good in this concern and their merchandises are demanding all over the universe.

Malayan Organizations are the largest universe exports of gum elastic baseball mitts industry where as other states like Thailand have no Competition with Malayan Industries the Biggest Strength of Malayan industries are their labour production each worker in the gum elastic baseball mitt industry are three times more productive than Thailand and Indonesian workers. So there is Nothing to worry approximately at the minute that some State Might take over their Market. There are few things Which has to be considered are political dealingss with other states. Thailand supplies 50 % of Raw Material to do baseball mitts to Malaysia. Any Political Issue can do a batch of jobs to the Rubber Glove industries.

BibliographyBusinessweek. 2013. hypertext transfer protocol: //investing. businessweek. com. [ Online ] Available at: hypertext transfer protocol: //investing. businessweek. com/research/stocks/snapshot/snapshot. asp? ticker=HART: MK [ Accessed 7 July 2013 ] . Emilio Colombo. L. S. . 2006. Contribution to economic sciences. In M. B. Werner A Muller. erectile dysfunction. Fiscal Market Imperfections and Corporate Decisions. New York: Physica-Verlag. p. 174. EMIS. 2013. hypertext transfer protocol: //www. securities. com. [ Online ] Available at: hypertext transfer protocol: //www. securities. com/Public/company-profile/MY/Top_Glove_Corporation_Bhd_en_1663501. hypertext markup language [ Accessed 7 July 2013 ] . Haralega. 2012. Unlocking Potential. Annual Report. Kuala Lumpur: Haralega Holdings Berhad. Hartalega Holding Berhad. 2012. Unlocking Potential. Annual study. Kuala Lumpur: Hartalega Holdings Hartalega Holdings. Hartalega. 2013. Hartalega. com. [ Online ] Available at: hypertext transfer protocol: //hartalega. com. my. [ Accessed 7 July 2013 ] . Koncept Analysis. 2012. hypertext transfer protocol: //www. researchandmarkets. com/reports/2097332/global_rubber_gloves_market_an_analysis_2012. [ Online ] Koncept Analsysis Available at: hypertext transfer protocol: //www. researchandmarkets. com/reports/2097332/global_rubber_gloves_market_an_analysis_2012 [ Accessed 8 July 2013 ] . Lee. J. . 2012. Malaysia Equity. Investment research daily. 1. p. 23. Michelle Foong. 2012. Rubber Gloves Gloving the universe. Research. Global Market Research Companies. Thukaram. R. M. . 2007. Management Accounting. In Management Accounting. 1st erectile dysfunction. New Delhi: New Age International ( P ) Limited Publishers. p. 588. Top Glove

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