Topglove 2017 Jan 5 AGM - First AGM

First Attend AGM - Topglov

First time attend Topglov AGM, in its new buildings in setia alam. overall well manage and building still quite new. alot of staff was assign to serve shareholder.

Door Gift
Break fast Tuna and banana
2 pack of TopGlove glove.
1 Towel
lunch pack(Chinese meal)

Highlight

 Reason to sales revenue higher and profit due to Raw material price reduce and RM depreciate while others impact on cost is Natural gas and minimum wages increase.

Shareholder return increasing

 This can see the company manage well. turn over quite fast about 30-40 days only.

 Dividend payout for the years.

 Apparently Latex and Nitrile is major sales, but soon Latex powder will be replace by Nitrile.

Plan to finish 3 new factory for all nitrile glove by 2017 and 2018

From here can see the Europe and North America cater almost half of the sales already.














If one buy the stock since IPO till now its price will be 110 already about 4400% accordingly.



Reply on queries

1. Impact on US Ban latex powder on medical can be negligible due to small % only Ban on medical sector.
2. while the 75% forex reserve is no cost impact as may convert back to USD at same rate, just double admin work.
3. labour wages hike to be reduce by automation in future.
4. future planning about 200-250Mil capex expansion on new factory and refurbish exiting factory.Plan is 1 year build 2 new factory.
5. Board confidence after 1-2 years will be No. 1 for Nitrile glove as well. Means Kossan will be beat up.(to be observe)



Summary

Only after the AGM i know and ask the type of glove that TP is doing. lucky got a counter to present and explain the glove to shareholder. From the information that glove basically divided in 4 category which is Latex , Nitrile , CPE/TPE , Medical used. for Latex is natural rubber made, Nitrile is synthetic rubber(Rubber which is not rubber allegy, used in various works), CPE is use for food hygiene while medical is custom made for dental and surgical glove which it is custom made in size.

The reason Nitrile glove was so high demand was due to it is free of Rubber Latex Allegy. meanwhile the US have also Ban all the latex powder for medical sector used. Due to this reason TP have been aggressive build new plant to produce Nitrile glove instead of Latex glove.

Some key point highlight by board was that the glove is still got market to expand as Middle east country appear to be next growing engine for glove sector if the government decide to impose glove usage in these country.

i do believe the company still can growth further as the market demand is still there, and Malaysia have good raw material such as rubber and infrastructure to support this industry growth.