Top Glove's share price higher despite 17 employees tested positive for COVID-19

KUALA LUMPUR: Top Glove Corporation Bhd's share price was higher in the early trading session, increasing one sen to RM8.31 despite reports that 17 of its employees tested positive for COVID-19.

At 11.00 am, a total of 16.20 million shares changed hands.

Top Glove, in a statement yesterday, said the number of employees, who tested positive for COVID-19 since January 2020, was less than 0.1 per cent of the group’s total workforce of 21,000 people, and they were asymptomatic and most of them did not have a fever.

CGS-CIMB Research said it expects minimal impact on Top Glove’s financial year 2021-2023 earnings per share forecasts, pending further developments on this matter.

"However, our view is based on the assumption that the situation does not worsen, such as a sharp increase in the number of confirmed COVID-19 cases among its workers.

"In the event that this happens, we do not discount the possibility of any potential form of disruptions to its operations in Klang, Selangor," it said in a note today.

The research house said it estimates Top Glove's total capacity factories in Klang contributes up to 50 per cent of the group's total current production capacity (of 90 billion pieces per annum).

"Hence, we also retain our 'add' call with a target price of RM10.00.

"We continue to like Top Glove, as it is the key beneficiary of higher glove demand owing to COVID-19, given its position as the world’s largest glove maker," it said.

-- BERNAMA