Glove manufacturing is big business in Malaysia. The country is home to the world’s largest rubber glove manufacturer by market share, Top Glove Corporation Bhd (KLSE:7113.KL).
Other listed glove manufacturers in Malaysia include Hartalega Holdings Berhad (KLSE:5168.KL), Kossan Rubber Industries Berhad (KLSE:7153.KL) and Supermax Corporation Bhd (KLSE:7106.KL).
Over in Singapore, the stock exchange is home to three listed glove manufacturers – Riverstone Holdings Limited (SGX: AP4), Top Glove (SGX: BVA) and UG Healthcare Corporation Ltd (SGX: 41A). Top Glove has a primary listing in Malaysia and a secondary listing in Singapore.
Below are some data on the listed glove manufacturers in Singapore:
|Company||Market Capitalisation||Price-to-earnings (P/E) ratio||Dividend Yield (%)|
|Riverstone Holdings Limited||S$774.4 million||19.3||2.0|
|Top Glove||S$2,227.5 million||18.0||2.7|
|UG Healthcare Corporation Ltd||S$46.0 million||18.9||N/A|
Source: SGX StockFacts and author’s calculations
First on the list is Riverstone Holdings, which was started in 1989. The company manufactures healthcare gloves, nitrile gloves, finger cots, face masks, packaging bags, etc. Its products are widely used in industries like healthcare, semiconductors, manufacturing, biotechnology and pharmaceutical.
Riverstone exports more than 85% of its products to high-technology countries around Asia, Europe and America.
In 2016, its annual production capacity was 6.2 billion pieces. This is expected to rise to 7.6 billion pieces this year, and to 10.4 billion pieces in 2019. The firm sees non-hard disk drive markets for cleanroom gloves, as well as the US and Japan markets for both cleanroom and healthcare gloves gaining traction.
Moving on, Top Glove, which was founded in 1991, caters to the medical, food and general industrial sectors.
As of 9 June 2017, it had 550 production lines producing 51.9 billion pieces of gloves per year. Its market share was a quarter of the estimated world consumption of 190 billion pieces of gloves per annum for 2016.
Last but not the least, UG Healthcare Corporation’s gloves are used in industries such as healthcare, food and beverage, and automotive. The firm was listed here in December 2014.
For the full year ended 30 June 2017 (FY2017), it produced 2.4 billion pieces of gloves per annum. The firm is expanding its production line for an additional 500 million gloves. This will help to achieve its goal of producing 2.9 billion gloves per annum by the end of FY2018.
From the table above, Top Glove looks to be the cheapest stock in terms of P/E ratio and dividend yield. However, this does not necessarily mean that the company is the best buy. Other areas of the three companies, such as their financial strength, the quality of their management team and growth prospects have to be looked into before coming to any investment decision.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Riverstone Holdings Limited. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.