SGX Market Updates

SGX’s Trio of Rubber Glove Makers Average 32% Total Return in YTD


03 March 2020

  • SGX lists 3 rubber glove plays – Top Glove Corp, Riverstone Holdings and UG Healthcare Corp – which have a combined market cap of more than S$5 billion.

  • In the 2020 YTD, the trio of rubber glove plays have averaged a total return of 28.7%, bringing their 1Y and 3Y total returns to 10.1 %and 48.8% respectively.

  •  Global demand for rubber gloves is expected to increase as countries step up efforts to contain the spread of the COVID-19 coronavirus, which has spread to at least 65 countries and territories. So far, more than 3,000 patients worldwide have died from the virus and nearly 90,000 have been infected.

SGX lists 3 rubber glove plays – Top Glove Corp, Riverstone Holdings and UG Healthcare Corp – which have a combined market capitalisation of more than S$5 billion.

  • Top Glove: The world’s largest manufacturer of gloves is primary-listed on the Bursa Malaysia, with a secondary listing on SGX. It produces 70.1 billion gloves annually for more than 2,000 customers worldwide and exports to more than 195 countries.

  • Riverstone: With an annual production capacity of about 9.0 billion gloves, it makes premium nitrile gloves used in the healthcare industry, as well as nitrile and natural rubber clean room gloves.

  • UG Healthcare: Manufactures and sells disposable gloves under its proprietary “Unigloves” brand through an established global downstream distribution network.

In the 2020 year-to-date, the trio of rubber glove plays have averaged a total return of 28.7%, bringing their one-year and three-year total returns to 10.1% and 48.8% respectively.

The table below details the three rubber glove makers listed on SGX, sorted by market cap.

Name SGX
1 Yr
3 Yr
2020 YTD
Average Daily
TOP GLOVE CORP BVA 48,671 18.6 -14.3 24.5 137.1 416,707
RIVERSTONE HLDGS AP4 763 10.3 -17.0 -6.1 24.0 1,232,760
UG HEALTHCARE 41A 42 57.1 -28.9 11.8 -14.7 1,877,206
Average 28.7 -20.1 10.1 48.8  

Source: Bloomberg & StockFacts (data as of 2 Mar 2020)

Robust Industry Prospects

Global demand for gloves is expected to increase as countries step up efforts to contain the spread of the COVID-19 coronavirus. The virus, which originated in China, has now spread to at least 65 countries and territories. So far, more than 3,000 patients worldwide have died and nearly 90,000 have been infected.

The Malaysian Rubber Glove Manufacturers Association (MARGMA) has said that its members are prepared to gear up glove production to meet requirements if the coronavirus outbreak becomes a pandemic. Malaysia currently accounts for about 63% of global medical glove output, or about 220 billion pieces in 2020, MARGMA noted in a media statement last month.

Earnings Highlights

Top Glove (1QFY20 ended 30 Nov 2019)
  • Sales revenue of RM1.21 billion, down 4.2% YoY.
  • Net attributable profit of RM111.8 million, up 0.1% YoY.
  • In tandem with strong glove demand, which is estimated to grow at 10%-12% yearly, the Group will continue organic expansion plans such as:
    • investing in existing line refurbishment and building new technologically advanced glove factories
    • adding more automation and digitalisation initiatives including:
    • Automated Guided Vehicle (AGV) transport and warehouse management system
    • glove auto packing system
    • artificial intelligence vision camera system for online detection and removal of defective gloves
    • auto compounding and chemical preparation
  • It will also explore M&As and JVs, while diversifying into rubber or healthcare-related businesses.

Click here for the full results statement.

Riverstone Holdings (FY19 ended 31 Dec 2019)
  • Revenue rose 7.4% YoY to RM989.0 million.
  • Attributable net profit rose 0.6% YoY to RM130.4 million.
  • We remain cognisant of industry-wide challenges that include intensifying competition, higher labour costs, foreign exchange and raw material price fluctuations.
  • We are focused on adopting automation to improve our production efficiency, as well as delivering high-tech and customised solutions to maintain our longstanding customer relationships.
  • Global sales volume for gloves is expected to grow at about 8%-10% in 2020, underpinned by an expanding global healthcare sector and increased awareness of hygiene practices.
  • Phase 6 of our expansion plans to lift capacity by up to 1.4 billion gloves to a total of 10.4 billion gloves per annum is on track, and will allow us to capitalise on burgeoning global demand in the coming year.
  • Plans to construct our new facility and expand capacity further are underway following our acquisition of a 3.8-acre landbank in Taiping.

Click here for the full results statement.

UG Healthcare (HY20 ended 31 Dec 2019)
  • Revenue rose 28.5% YoY to S$53.2 million.
  • Net profit fell 36.8% YoY to S$0.8 million.
  • Lower earnings due to increased marketing campaigns and higher recruitment efforts across all departments and distribution networks in Brazil, UK, China and Nigeria.
  • The Group has started major modification and upgrading of some of its existing production lines in progressive stages since June 2019.
  • Due to the coronavirus outbreak, we have been receiving a surge in orders for latex and nitrile gloves, which delayed our plan to modify certain production lines.
  • We are on track to achieve optimal utilisation with the existing production capacity of 2.9 billion gloves per annum in the current financial year, before embarking on construction of new production lines.
  • The additional annual capacity of 300 million gloves is scheduled to come on stream in the financial year ending 30 June 2021.

Click here for the full results statement.

This article is provided by SGX My Gateway.

SGX My Gateway

SGX's investor education portal with market, product and investment information and events. Sign up now at to receive our investment updates and economic calendar.

This document is not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Singapore Exchange Limited (“SGX”) to any registration or licensing requirement. This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document is for general circulation only. It does not address the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a financial adviser regarding the suitability of any investment product before investing or adopting any investment strategies. Use of and/or reliance on this document is entirely at the reader’s own risk. Further information on this investment product may be obtained from Investment products are subject to significant investment risks, including the possible loss of the principal amount invested. Past performance of investment products is not indicative of their future performance. Examples provided are for illustrative purposes only. While each of SGX and its affiliates (collectively, the SGX Group Companies) have taken reasonable care to ensure the accuracy and completeness of the information provided, each of the SGX Group Companies disclaims any and all guarantees, representations and warranties, expressed or implied, in relation to this document and shall not be responsible or liable (whether under contract, tort (including negligence) or otherwise) for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind, including without limitation loss of profit, loss of reputation and loss of opportunity) suffered or incurred by any person due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information, or arising from and/or in connection with this document. The information in this document may have been obtained via third party sources and which have not been independently verified by any SGX Group Company. No SGX Group Company endorses or shall be liable for the content of information provided by third parties. The SGX Group Companies may deal in investment products in the usual course of their business, and may be on the opposite side of any trades. SGX is an exempt financial adviser under the Financial Advisers Act (Cap. 110) of Singapore. The information in this document is subject to change without notice. This document shall not be reproduced, republished, uploaded, linked, posted, transmitted, adapted, copied, translated, modified, edited or otherwise displayed or distributed in any manner without SGX’s prior written consent.

SGX Stock / REIT Search


Trust Bank God Of Fortune Referral Code PGKPSWAE Trust Bank Referral Code 🎁