This is A Value Stock, According to the FTSE Value-Stocks ASEAN Index

A couple of months back, I shared that there are 12 Singapore-listed stocks which are in the FTSE Value-Stocks ASEAN Index.

As a quick refresher, the objective of the index is to identify quality and overlooked value stocks listed in ASEAN stock exchanges. The index picks its stocks using a proprietary value screening process which includes valuation, quality, and contrarian factors.

In the valuation group are things such as a stock’s price-to-earnings (PE) ratio and dividend yield. The quality factors include a stock’s return on equity, operating profit margin, and net gearing.

A recent report revealed that a recently listed stock in Singapore is also part of the FTSE Value-Stocks ASEAN Index. The stock is Top Glove (SGX: BVA)(KLSE: 7113.KL). Here are five quick facts about the company that investors might find useful:

  1. The glove manufacturer sought a secondary listing in Singapore in late June this year. Top Glove has been listed in Malaysia since 2001. The company was already part of the FTSE Value Stock ASEAN Index before its appearance in Singapore’s stock market.
  2. Top Glove was founded in 1991 by Dr Lim Wee Chai. Currently, Dr Lim serves as the firm’s executive chairman.
  3. In an earlier interview, Dr Lim said that when he was contemplating what business to start, he realised that medical gloves provided good margins and that the healthcare sector showed strong growth. Ultimately, he decided to go after the glove manufacturing industry.
  4. The move has paid off. Top Glove is the world’s largest rubber glove maker by volume. The company currently operates 27 facilities around the world, with an annual production capacity of 45 billion gloves. According to Dr Lim, the firm has a 25% market share of the natural rubber gloves market.
  5. Dr Lim believes that global glove demand can grow at a rate of 6% to 8% annually over the long-term. He has set Top Glove a target of achieving a 30% market share by 2020.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn't own shares in any company mentioned.