Top Glove Corporation Bhd, the world's largest rubber glove manufacturer, is looking at possible acquisitions in Indonesia, Thailand and Malaysia.
Its Chairman, Tan Sri Lim Wee Chai, said the company was currently in talks with potential parties and expected deals to be concluded or finalised within a year.
"As of now, we have committed RM80 million for ongoing expansion in new factories and production lines in Malaysia and Thailand to boost our capacity from 33 billion pieces per annum to 41.25 billion pieces per annum by 2011," Lim said during an analysts'' briefing here today.
Currently, Top Glove has 20 manufacturing facilities spread over Malaysia, Thailand and China.
Lim said Top Glove was bullish of its financial performance in the current financial year ending August 31, 2010 given the growing global demand for rubber gloves due to the H1N1 epidemic.
"Net profit may surge between 70 per cent and 80 per cent during that period.
"Overall, we have maintained an average profit margin of eight to 10 per cent over the last 10 years.
"For this year and 2011, we are confident of maintaining these numbers," Lim added.
As for profit after tax, Top Glove had achieved an annual compound growth rate of 36 per cent since 2001.
"We are happy if we can achieve at least 20 per cent growth rate, moving forward in the coming years," he said.
Top Glove chalked up a pre-tax profit of RM263.9 million, up 85 per cent for the nine-months ended May 31, 2010, against RM142.5 million achieved during the corresponding period.
Lim said the nine-month period was challenging for Top Glove as latex prices had surged from a low of RM4.97 per kg, in November 2009, to RM7.20 per kg, as at June 18, 2010. - Bernama
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