Top Glove shares fail to rise despite record quarterly earnings

KUALA LUMPUR (Dec 9): Top Glove Corp Bhd's record-high quarterly earnings have failed to lift the group’s share price.

At 4.23pm, the counter was down 17 sen or 2.4% at RM6.92. It earlier slipped to an intra-day low of RM6.90.

The stock saw 78.04 million shares changing hands.

Top Glove shares have fallen 27.92% from their recent peak of RM9.60 on Oct 19.

Philip Capital chief strategist Phua Lee Kerk said Top Glove’s record-high revenue and profit have already been factored into the share price.

“It is not a surprising news that will stimulate the shares to rise,” he said when contacted bytheedgemarkets.com.

Amid the recent positive development on the Covid-19 vaccine front, Phua said Top Glove’s share price has been affected by the high number of infections among its workforce.

Top Glove announced today that its net profit for the first quarter ended Sept 30 surged to RM2.38 billion, from RM111.43 million a year earlier, as revenue rose to RM4.76 billion from RM1.21 billion, underpinned by continued strong global rubber glove demand due to the pandemic.

The glovemaker declared an interim dividend of 16.5 sen.

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Top Glove 1Q net profit surges to RM2.38b, declares 16.5 sen dividend