Home > Business, Cambodia Business News > OSK Research Positive On Top Glove’s Investment In Cambodia’s Rubber Plantation

OSK Research Positive On Top Glove’s Investment In Cambodia’s Rubber Plantation

KUALA LUMPUR, Jan 12 (Bernama) — OSK Research is positive on Top Glove
Corporation Bhd’s move to invest in Cambodia’s rubber plantation as it
will act as a hedging mechanism for the glove manufacturer.

However, the plantation’s contribution alone was not sufficient to
meet Top Glove’s total latex requirement, thus the management is
expected to buy more land once the move turn out to be a success, it
said in a statement.

As for the gloves manufacturer’s move to increase nitrile mix
glove to a targeted 15 per cent, the research firm was positive on the
move but was still unsure on how fast Top Glove can make the switch.

“This is due to the difficulty to penetrate into the nitrile glove
market since the gloves are mainly sold to established healthcare
multinational companies which have fixed orders from existing suppliers.

“Unless Top Glove is targeting its existing customers, it may not
be so easy to penetrate into new markets or garner new customers since
this type of gloves are used for medical purposes, which are required
to meet high Food and Drug Administration requirements,” it said.

The research firm maintained its “natural” recommendation and RM5.74 target price for Top Glove.

— BERNAMA

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