- While Top Glove (SGX:BVA) has successfully raised its average selling price to ~US$21/k pcs, its upcoming 3QFY23 earnings are expected to remain in the red due to low plant utilisation of <40%.
- Top Glove's effective capacity has decreased by 40% on decommissioning of two factories and placing another 16 plants on idle. Given the persistent oversupplied situation, losses may persist in the near term.
- - Read this at SGinvestors.io -
Decommissioning and shutting down plants
- Top Glove has, thus far, decommissioned two old factories with 5b pcs p.a. capacity, and temporarily shut down another 16 plants with 35b pcs p.a. This has led to a significant decrease in effective capacity, reducing it by 40% to 60b pcs, from 100b pcs.
- - Read this at SGinvestors.io -
- As for the 16 idle glove plants, operations can resume within 1-2 months once demand picks up.
Top Glove's plant utilisation rate remains low
- Read more at SGinvestors.io.
