Introduction To Top Glove Corporation Berhad Essay

c everywhere charge paw smoke was Started In 1991 In the Beginning filch baseball mitt confede balancen had just 1 Factory 3 exertion lines and 100 Staff, but without ascertain it Has Become the Most Successful and Largest no-accountize baseball glove manufacture resulting in 25 factories which they had just 1 match slight when they started and straightaway has 470 Production lines and a strength to r all(prenominal) 41.1 meg baseball mitts per Annum. conduce Glove Corpo proportionalityn has to a greater effect than 10 Branches non In Malaysia but has excessively Spread In China and Thailand The Main Activities of Top Glove atomic number 18 enthronement holdings and provision of focussing service of processs. Top Glove be hotshot of the largest rubber-base paint paws, nitrile, surgical, ho make example ofhold, Cleanroom,Vinyl and more(prenominal) types of baseball mitt make believer and fill ups mel economic crisis tone Products and meets the In creasing expectations of the outside(a) Top Glove Corpoproportionn was Listed second In Malaysian Bourse and within a category It was promoted to the crownwork city of Malaysia Kuala Lumpur dividing line Exchange (Bursa Saham) .It consists Sh arholder fund charge 1.28Billion with an annual duty tourover which is al some 2.31Billion as at financial year end 31 August 2012.Tan Sri Lim the Founder of Top Glove Achievements has A Huge assign for telephoners Success Not Only Tan sri Lim But the passing Committed and Motivation of Board of coachs together with 11000 Strong Work Force. Customers ar the measur subject Factor for Top Glove conjunction their motive is to Provide High timberland Products with affordable follow and To Provide them the lift out customer service. The Company is looking forrader To Invest IN R&D IT and Automation to make sure to improve The Quality and Production capability. Looking At the Future Top Gloves Objective is to Capture 30% of the manhoodwide mart sh be by 2015, (Top Glove, 2013) (EMIS, 2013)1.1 coronate hand CORPORATION VISION AND billingWe Strive to be the Worlds Leading Manufacture with brilliant Quality Glove Products and Service enrich and shelter Human Lives CORPORATE MISSION To Be World Class Glove maker by providing nip Quality products withExcellent services through continuous Improvements and vicissitude (Top Glove, 2013) 1.2 KEY EXECUTIVESWee Chai Lim hot seatKim utter LeeManaging theater directorCheong Guan Lim decision maker DirectorSiew Bee TongExecutive DirectorArshad salt away AyubIndependent Non-Executive Director (Company)1.3 CHAIRMAN LIM WEE CHAI compose(Top Glove Corpo dimensionn Berhad, 2012)Lim Wee chai is a Malaysian citizen aged 54 He was graduated in Bachelor of scientific discipline degree in physics from University Malaya and undefiled his master degree in line administration Sul Ross State University in Texas, linked States. Lim wee chai was appointed as a chairma n at top glove corporation on 4th kinfolk 2000. Top glove Corporation Berhad was started with all 3 issue lines under the chair lim wee chai Leadership and visions top glove mystify engender worlds largest rubber glove make growrs and has captured 25% of the world commercialize sh ar. The lodge now has more than 23 factories and 457 production lines in Malaysia and on the otherwise counties which atomic number 18 china and Thailand. The Production capacity is to produce 40 million pieces of gloves per annum, over thousands of customers bring in more than 185 Countries. He has trustworthy 10 awards for his achievements success and contribution towards the Glove Industry (Top Glove Corporation Berhad, 2012)2.0 portal TO HARTALEGA HOLDINGS BERHAD(Hartalega, 2013)Hartalega Berhad Manufacture and sell latex paint and nitrile gloves.The familys latex and nitrile gloves consists of examination and operative, projectionatory, Clean room gloves, nuclear power plant etc.I t also deals in retail and wholesale of gloves, Property leasing interrogation and development of automation systems. Hartalega was established in 1988 with the vision to produce gloves to protect the cardinal thing which is Life, Hartalega Used to be peerless line operation in the root system but now it is one of the most largest Company with 53 Production lines, and a cap might to produce 12 Billion gloves Per Year. Since the Start, Hartalega e genuinely single operation is been apply to Tradition of Excellence, they be delivering the best prize through state of the art equipment, naughty quality system and dedicated workers their products argon extravagantly recognized all over the world Hartalega Success isBeca use up of their loyal customers and lucid improvements in quality of products, reliable service with efficiency by the culture of unaf meliorate and honest approach to assembly line. Hartalega has Huge merchandise all over the world which atomic number 18 in North America, Europe, Asia, Australia Malaysia Hartalega is the keep familiarity which has produced a hazard types of products compare of its competitors and they are first one who has produced it which are Polymer sur caseful Powder-Free exam Gloves, Low Protein Latex Examination Gloves, Robotic glove undressping system which helps to strip gloves off from the production lines, first one to produce high-stress relaxation NBR Examination and Surgical gloves, first assiduity to use vege sidestep oil Palm Empty fruit bunches as biomass fuel to produce heat for production process and Many More products which had produce 1st the Industry. Hartalega has earned a lot of Awards Be suffice of their hard work, dedication and motivation. (Hartalega, 2013) (Businessweek, 2013)2.1 BOARD OF DIRECTORS1. Kuan Kam HonExecutive Chairman and Managing Director2. Chuah Phaik SimIndependent Non-Executive Director3. Dato Mohamed ZakIndependent Non-Executive Director4. Kuan Mun KengNon-Independen t Executive Director5. Kuan Mun LeongNon-Independent Executive Director6. Liew Ben PohNon-Independent Non-Executive Director (Haralega, 2012)(Hartalega prop Berhad, 2012)2.2 HARTALEGA CHAIRMAN PROFILE(Hartalega belongings Berhad, 2012)Kuan Kam Hon aged 65, Is the Executive chairman and Managing Director atHartalega, he was appointed on May 7, 2007. Kuan Kam Hon is responsible for all job strategic plannings and whole operations in the class including research and development, He started his course in the construction company named kuan Yuen & Sons Company which was a well-known construction company in 1970s, in 1981 he form Hartalega Sdn Bhd Under his leadership Hartalega has now become a reputable producers of latex gloves in the industry in Malaysia and is public listed in bursa Malaysia. He has created a set of centering with Higher standards and encourages creativity and innovation to produce highly-skilled personnel. (Hartalega Holding Berhad, 2012)3.0 RUBBER GLOVE INDSUT RY abstractThe rubber learn has been append chop-chop high after the H1N1 Pandemic in 2010. dick glove industry is freeing to witness Lower demand as in that respect is no Huge illness found in Humans, Plants or Animals since die hard year, arctic Glove Industry wholly depends on its usage on checkup exam sector, Industry has been facing recession sentence to era. Malaysia is the largest Producer and exporter of Rubber gloves at present, Malaysian industry of rubber gloves has high penury all over the world, Top Producers of Rubber gloves are, Top Glove, Supermax, Kossan rubber industry and Hartalega. Malaysian Industry exports to the US, Europe, Latin America, China and India, Us is the largest Importer of Rubber Gloves as their expenditure on Health cope has gone high as percentage of GDP Since 2000. UK and European Countries are following the same(p) heading of using more vigorous products.And is pass judgment for other countries as well pauperization for Rub ber gloves Have Increased in Countries like India, China and Brazil in the recent years as they are more bear on to their healthcare and needinesss to use hygienic Products, Demand for lower-end powdered latex gloves is high in develop countries who are more cost conscious which is cheaper than powder-free latex and nitrile gloves, The Developed countries such as US and Europe prefer to use Powder-free latex and Nitrile gloves. (Koncept Analysis, 2012)4.0 FUTURE scout OF RUBBER GLOVE INDUSTRIES4.1 HIGH bespeak OF GLOVESRubber Glove Industry go forth be having long circumstancedemand for their products from the highly developed Countries. Emerging economies whitethorn possibly drive high succeeding(a) demand as their population is increase, they are more aware of the importance of hygienic products in medical sectors as allow for be having high demand of High quality of Healthcare products and services. Health Care Expenditures is increase for most developed Countries, whic h has change magnitude demand for gloves, which may affect increase in cost but nonetheless stand be manageable. drift and labor cost are pass judgment to be increase In 2013, but no sure if that can make a huge impact of Glove mart (lee, 2012)4.2 STABLE MARKET SHARE, CAPACITY TO add-onTop 4 Glove Producers may not become M &A Targets. Kossan Rubber industry may have a chance of being such a target if we pick among the quartet Largest Producers. The Rubber Glove Companies are increasing their production capacity to remain in the competition. Annual Capacity growth is expected to be nearly 18% or 14.2BN pieces in 2013 (lee, 2012)4.3 RISKS INVOVLED IN RUBBER GLOVE INDUSTRIESRubber Glove Industries can face various kinds of risks which are as follows 1. Competitors in this Industry have aggressively expended their capacity plans this can result in an gourmandize 2. Sharp instpower in latex cost and foreign currencies resulting in virtually boundary strand squeeze 3. govern mental Risk, domestic and regional, Glove manufactures source 50% of their raw material from Thailand. Risk is low production of NR latex and lower bring home the bacon at glove manufacturers 4. Infrastructural bottle necks and Labor Shortages Supply of Malaysias Natural Gas is reached its maximum point to the Glove industries and tender allocations are expected to come, any delay in new allocation go away become a huge riddle for Glove Industries for that they have to use option fuel for production with higher cost (Michelle Foong, 2012)5.0 FINANCIAL abbreviation5.1 FINANCIAL ANALYSIS FOR TOP GLOVE CORPORATION BERHARD5.3 PROFITABLITY favorableness ratios shows that benefit earning capacity of a business for the sake of clear understanding gainfulness ratios frameified into two categories general favorableness ratios and overall flexure a addition cleverness ratios, The thoroughgoing(a) net income adjustment ratio (or gross moulding ratio) provides clues to the com panys pricing, cost body structure and production efficiency. A low profit margin ratio indicates that low sum of money of moolah, required to pay off fixed costs and profits are generated from revenues. (Thukaram, 2007). Top Glove Corporation gross profit margin has been increased as compare with the profit ratio in 2011 and 2012, 2011 it was 11.44% in 2012 its 16.63 same goes for net profit margin, but with less expenses. Top glove Corporation profit earning capacity has been increased impressively lucrativeness20122011Gross profit margin meshing profit MarginExpenses margin16,63 9,87 = 6.76%11,44 6,57 = 4.87%5.4 liquidLiquidity ratios provides information on the time structure of debt and the unanimouss ability to meet its short term pledge Current ratio is balance-sheet financial feat measure of company liquidity. Current ratio indicates a companys ability to meet short-term debt obligations. The received ratio measures whether or not a firm has enough resources to pay its debts over the adjacent 12 months. Quick ratio is viewed as a sign of a companys financial strength or weakness it gives information about a companys short term liquidity. The ratio tells creditors how much of the companys short term debt can be met by selling all the companys liquid additions at very short notice. (Emilio Colombo, 2006).Liquidity ratios shows ability of the company to pay back its debts which top glove has changefrom 3.121 to 2.951 in 2012 liquidity20122011Current ratioQuick proportion5.5 EFFICIENCYEfficiency ratios measure how expeditiously a firm uses its resources. The average disposition period shows the average number of long time it takes your business to collect payment for gross revenue to customers on credit, The accounts payable perturbation ratio shows how quickly your business pays its bills and how often payables turn over during the year. Trends in the accounts payable overturn ratio demonstrates how your business handles its outgoing payme nts and can help you assess the cash slur of your business. This efficiency ratios shows that top glove fixed asset turnover has been increased from 2.9 in 2011 to 2.93% in 2012 debtors prayer time has also slight more efficient compared to 2011 it was 47 long time in 2012 it is 46 old age meanwhile creditor payment is facing more delays compared to previous year which was 39days in 2011 turn into 44days in 2012 (Emilio Colombo, 2006)EFFICIENCY20122011Fixed asset turnoverDebtors collectionCreditor payment declination Turnover5.6 CAPITAL STRUCTURECapital social structure is a mix of a companys long term debt, specific short-term debt, and common fairness and preferred equity. The capital Structure is how afirm finances its overall operations and growth by using diverse sources of funds. The stakes do byage ratio indicates the extent of which dough are available to meet interest payments. A interest cover ratio intend less earnings are available to meet interest payments and that the business is more vulnerable to increases in interest rates.Capital Structure20122011 by-line CoverGearing ratioINVESTORS monetary ratios are apply to analyze company performance, Return of equities investors is much greater than that use to debentures may be because this investment class have a huge risk, and popular shareholder are the best group of investors for an organizations. The Price earning ratio for an organization is used to compare the financial position of a company compare to other organizations, this means the better financial position of a company is according to PE proportionalitys the lower risks is for its investors and shareholders. Organizations which want to expand their dividends will seek to over a large amount of their earnings whereas organizations which have high cash holdings are able to pay higher dividends if they appetency to, the relation between dividends and earnings are calculated by dividend cover (Woods, 1999).Investors2012RM0002011 RM000ROCE roeEPS0,32770,1829Earning YieldDividend PayoutDividend Retention1 0,478 = 0,521 0,59 = 0,416.0 FINANCIAL ANALYSIS FOR HARTALEGA HOLDINGS BERHAD6.1 PROFITABLITYThese figures shows that Hartalegas gross profit margin was 37.15% In 2011and it is fall in 2012 to 31.85%, simoleons profit margin is also rock-bottom in 27.9% 2012 which was 33.4% in 2011 it tell that company is underperforming compared to last years performance. But expenses are reduced from 4.75% to 3.95%Profitability20122011Gross profitNet Profit MarginExpenses Margin31,85 27,9 = 3.95%37,15 32.4 = 4.75%6.2 liquid stateThis Table shows Liquidity of Hartalega Company their ability to pay their debts is Increased compared to 2011 which was 3.631 at one time increased to 4.421 in current ratio. If we measure that in quick ratio it also shows anIncrease from 2.811 to 328Liquidity20122011Current ratioQuick Ratio6.3 EFFICIENCYThis table shows The Figures how Efficiently hartalega corporation is using their re sources in 2011 their fixed asset turnover was 2.11 which is increased to 2.45% it tells us that and debtors collection period is decreased from 50 days to 46 days so they are collecting their debts former compared to previous year and creditor period in also decreased from 45 days to 35 days they are able to pay back their Creditors earlier than 2011 and extend turnover is also increased from 51 days to 56 days. This table tells us that hartalega is using their resources very efficientlyEfficiency20122011Fixed asset turnoverDebtors collection periodCreditor paymentStock turnover6.4 CAPITAL STRUCTURECapital Structure20122011Interest CoverGearing RatioINVESTORSInvestors20122011ROCEROEEPS0,2765 pence0,2618 penceEarning YieldDividend PayoutDividend Retention1 0,43 = 0,571 0,29 = 0,717.0 RECOMMENDATIONS AND CONCLUSIONSRubber Glove industry has huge demand in market and in future it will be demanded even more Developed Countries and developing countries are very concerned to use Hyge nic products in their medical sectors and so their medical care expenditures will be increasing the demand for Gloves will also be increasing. As For Under developed Countries If there is a hope for them to Increase their miserliness and they will also be concerned to use hygienic products like other Developed Countries demand for the Rubber Gloves will go even higher. Malaysia has dominated the Rubber Glove Industry and Is the King of rubber gloves. Top Rubber and latex gloves manufacturing companies are In Malaysia So there is a lot more competition with in Malaysia on this Business and all the companies are trying to improve their capacity top Glove Manufacturing companies In Malaysia are Top Glove and Hartalega which are performing super well in this business and their products are demanding all over the world.Malaysian Organizations are the largest world exports of rubber gloves industry where as other countries like Thailand have no Competition with Malaysian Industries the Biggest Strength of Malaysian industries are their labor production each worker in the rubber glove industry are three propagation more productive than Thailand and Indonesian workers. So there is Nothing to worry about at the moment that some farming Might take over their market. in that location are few things Which has to be considered are political relations with other countries, Thailand supplies 50% of Raw Material to make gloves to Malaysia. any(prenominal) Political Issue can cause a lot of problems to the Rubber Glove manufactures.BibliographyBusinessweek, 2013. http//investing.businessweek.com. Online Available at http//investing.businessweek.com/research/stocks/ shot/snapshot.asp?ticker=HARTMK Accessed 7 July 2013. Emilio Colombo, L.S., 2006. character to economics. In M.B. Werner A Muller, ed. Financial Market Imperfections and Corporate Decisions. New york Physica-Verlag. p.174. EMIS, 2013. http//www.securities.com. Online Available at http//www.securities.com/Pub lic/company-profile/MY/Top_Glove_Corporation_Bhd_en_1663501.html Accessed 7 July 2013. Haralega, 2012. Unlocking Potential. Annual Report. Kuala Lumpur Haralega Holdings Berhad. Hartalega Holding Berhad, 2012. Unlocking Potential. Annual report. Kuala Lumpur Hartalega Holdings Hartalega Holdings. Hartalega, 2013. Hartalega.com. Online Available at http//hartalega.com.my. Accessed 7 July 2013. Koncept Analysis, 2012. http//www.researchandmarkets.com/reports/2097332/global_rubber_gloves_market_an_analysis_2012. Online Koncept Analsysis Available at http//www.researchandmarkets.com/reports/2097332/global_rubber_gloves_market_an_analysis_2012 Accessed 8 July 2013. lee, J., 2012. Malaysia Equity. Investment research daily, 1, p.23. Michelle Foong, 2012. Rubber Gloves Gloving the world. Research. Global Market Research Companies. Thukaram, R.M., 2007. forethought Accounting. In Management Accounting. 1st ed. New Delhi New climb on International(P) Limited Publishers. p.588. Top Glove