KUALA LUMPUR (Reuters) - Malaysia's medical glove makers face weeks of delays in delivering products to customers abroad due to a global shortage of shipping containers, hampering their ability to meet demand during the coronavirus crisis, industry officials said.
Posted: Jan 15, 2021 4:00 AM ET | Last Updated: January 16
Hidden camera footage inside the world s largest glove manufacturer in Malaysia shows several employees working in close quarters. Shortly after, there was a massive COVID-19 outbreak that led to nearly 6,000 infections. (Name withheld)
Wednesday, 13 Jan 2021 11:35 AM MYT
The investment bank said while it believes that glove makers’ fundamentals remain steady for the next few years, they offer limited upside at their current share prices. Reuters pic
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KUALA LUMPUR, Jan 13 AmInvestment Bank Bhd foresees the average selling prices (ASP) for rubber gloves to decline as there is no longer a rush for gloves compared to what happened at the beginning of the pandemic.
Nonetheless, it expects the ASP will stabilise at a higher level than the pre-pandemic level due to the broader usage of gloves. Moreover, capacity expansion from glove companies will be able to cope with the future demand.
AmInvest Research said beyond the pandemic, it anticipates a structural change in the way gloves are used, forming a new normal where glove usage per capita will rise as hygiene measures become stricter.
KUALA LUMPUR: AmInvestment Research is maintaining its Neutral view on the glove sector as valuations for Top Glove, Kossan and Hartalega under its coverage are already fully reflected in the companies’ earnings outlook.
In its research note issued on Wednesday, it reckoned the average selling prices (ASP) will begin to ease after 1H2021 following the strong increase over the past nine months, and are already priced in.
PNE PCB drawing up plans for rubber glove manufacturing, distribution venture For representational purpose only. – REUTERSPIX
PETALING JAYA: PNE PCB Bhd aims to venture into rubber glove manufacturing and distribution via its wholly owned subsidiary, PNE Glove Sdn Bhd.
Initially, it aims to set up five production lines with a total capacity of 1.5 billion pieces a year.
Towards that end, the group has entered into a lease agreement with GPA Holdings Bhd’s wholly owned subsidiary, GP Autobat Sdn Bhd, for the lease of certain industrial buildings in Klang, Selangor, for its glove production operations.
It highlighted that the decision to venture into the sector is due to the “swell in demand” as a consequence of the Covid-19 pandemic.