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3 Things You Might Not Know About Top Glove

Top Glove Corporation (SGX: BVA) is the largest rubber gloves maker in the world with about 25% market share. The company is based in Malaysia. Up until its recent debut on the Singapore stock exchange, it has always been listed on the KLSE Malaysia as Top Glove Corporation Bhd (KLSE: TOPGLOV).

I previously looked at the tailwinds that would support the growth of the gloves industry for the foreseeable future. And for investors looking to invest in this industry, they might want to start with the big brother of it – Top Glove – given its dominant global market share.

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In this article, I’ll look at three things that most investors do not know about the company but should.

Business rules and philosophies

To start with, let’s look at how the company runs its business.

Source: Top Glove’s Investor Presentation

What’s interesting to see from the above is that Top Glove is a customer-centric company (as in “we work for our customers”). Shareholders and employees come in as the second, and third points in its business philosophies.

Also, its business rules are rather unique as I have yet to see such rules anywhere. They are simple, straightforward, and make a lot of sense – attributes that are missing in a lot of businesses’ mission statements.

Quick numbers

After looking at the business rules and philosophies, let’s have a quick overview of the company’s business. What stands out for me from the below is the global reach of Top Glove; 2,000 customers across 195 countries.

 Source: Top Glove’s Investor Presentation

Revenue breakdown

Lastly, let’s have a quick scan of of Top Glove’s income breakdown.

Source: Top Glove’s Investor Presentation

From the above, we can see that the company’s income is rather diversified, both in terms of products and geography. Personally, I like companies that have such income diversification as it reduces earnings volatility.

Key takeaway

The above is a snapshot of Top Glove’s business and has hopefully informed readers about the extent of its operations. From here, investors can carry out further research into the company before buying its shares.

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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 Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore has recommended the shares of Top Glove Corporation.