Top Glove targets 30pc global market share by end-2015

KUALA LUMPUR: Top Glove Corp Bhd intends to grow its global market share from an estimated 25 per cent currently to 30 per cent by end-2015.

In a note yesterday, RHB Research said while Top Glove has been actively expanding its capacity organically, the management has acknowledged that the group will consider the merger and acquisition route if there were suitable acquisition targets.

RHB Research said all of Top Glove’s expansion plans are now focused on nitrile gloves.

“The management said the focus of the capacity expansion plans at phase 2 of Factory 23 (Ipoh) has switched to nitrile gloves from natural rubber gloves earlier.

“This, together with the other planned capacity expansion plans, means that Top Glove will be adding another 4.9 billion pieces per annum to its nitrile glove production capacity this year, bringing total nitrile glove production capacity to 10 billion,” it said.

It said planned capacity expansion for nitrile gloves over the next two years should result in stronger margins ahead, and eventually bring the group closer to its target of becoming the world’s largest nitrile glove producer.

RHB Research has maintained a “buy” call on the counter with the target prices of RM7.11.