• Malaysia stock market and companies daily report (October 02, 2015)

    - Top Glove Corporation is looking to expand aggressively through mergers and acquisitions, with hopes to conclude a deal within a year. According to the firm, it is talking to three or four rubber glove-related companies in Malaysia and Thailand.

    - The group which sits on a cash pile of RM200 million, has said that it will be able to come up with RM1 billion to RM2 billion more for the acquisition.

    - Company chairman Tan Sri Lim Wee Chai is optimistic about the firmís business prospects as it has benefited from automation and cost efficiency efforts that were started three years ago, but acknowledged that organic growth has been slowing down due to higher operating cost.

    - Despite being a net gainer of the fall in the Malaysian ringgit, it does not fully translate into Top Gloveís earnings as the company has reduced selling prices of its products by 3 percent to 5 percent, Lim noted.

    Significance: According to the group, it has its own key performance indicator target and must acquire one to two companies a year for it to grow. The weakening ringgit has been largely beneficial to the firm, as it expects a jump in net profit to hit an all-time high for its fourth quarter results ended 31 August.

    Contributed by Shares Investment
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