IMPORTANT FACTS OF RUBBER GLOVE INDUSTRY INVESTER SHOULD KNOW

Rubber Gloves

Glove manufacturing is big business in Malaysia and Singapore. singapore stock market news  These countries are the world’s largest rubber glove manufacturer by market share. Southeast Asia is the biggest producer of rubber in the world.some leading rubber glove manufacturers listed below:

• Top Glove Corporation Berhad (SGX: BVA),
• Hartalega Holdings Berhad (5168.KL), 
• Kossan Rubber Industries Bhd (7153.KL) and 
• Riverstone Holdings Limited (SGX: AP4).

Useful quick primer of the rubber glove industry: 

1. Demand for gloves: Over the next few year demands for rubber gloves is growing at 8-10% a year. Worldwide, this growth will be rapidly increasing by consumption in emerging markets and the growing need for healthcare services. stock research Singapore

Market share of Malaysia accounting for around 63% of the total rubber glove industry, followed by Thailand at 21% market share and Indonesia with 3% in 2016.

2. Raw material price: The cost of raw material prices fluctuate from quarter-to-quarter and can result in volatile earnings and gross profit margins. Gross margin during the period has ranged from as high as 22.1% in 2015 to a low of 17.75% in 2017.

3. Foreign currency risk: The Foreign currency is an important factor to take part in investing in glove manufacturers. foreign currency fluctuations can have a significant impact on its business operations because Most glove manufacturers supply outside of their geographical location and sell in a foreign currency. 

4. Large competitors: The high competition in the industry can have an adverse effect on selling prices. Many companies have taken advantage of the competitive edge due to the abundance of rubber supply. Consequently, there is heavy competition with big players expanding their capacity and increasing the supply further. singapore stock blog

5. Warnings: Investors need to be warned about the challenges and volatility that these manufacturers may face. The rubber manufacturing industry can be a rewarding space to invest in and growing demand for rubber gloves and the competitive edge that Southeast Asia affords to provide an excellent platform for glove makers to expand. 

Personal investing tips to get good returns in view of:

 The scenes to show you exactly how we first uncovered this stock, every article and piece of research we released on it... and what ultimately led to our decision to SELL for an 88% gain.

Members of David Kuo's personal investing club Stock Advisor Gold were recently rewarded with the biggest winner of Motley Fool Singapore has seen to date in a special 100% FREE report.