Summary as of 15 Dec 2016 as below,
Plan to be as 2018
1. May 2018 total production line 60 and capacity 56.8 billion glove per year.
Check point for topglove
1. Thailand factory 6 operation start?
2. Klang Factory 30 commence on Apr 2017
3. Klang Factory 31 phase 1 in Aug 2017 , phase 2
in May 2018.(produce 4.4 Bil glove/year)
Topglove cost impact by 2 major things.
1.
Average price for latex
2.
Average price for nitrile
Above is on the planning and summary from Topglov for the future. back to financial QR.
Impact on this QR 2017 mostly due to on 24% natural gas hike and 11% minimum wage increase.
to be check if these cost have shown in QR.
On the Segmental reporting Malaysia still largest contributor.
Even thru Msia got 23 Factory but the revenue produce is lower than Thailand(4 factory) by 28%.
Malaysia is losing advantage on manufacturing, soon factory may move to Thai or others place which is much more cost efficient.
Summary
This Quarter report obviously much weaker compare to last year 2015 which due to USD hike and Topglov earning have increase much. therefore, similar event may not necessary have same outcome.
Overall Results is poor compare year 2016. but considering much cost increase in 2016, 2017 to be follow up again if the production increase especially in thai able to contribute profit for future?
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