KUALA LUMPUR: Glove manufacturer Top Glove Corp Bhd has no plans to carry out its third share buyback programme at the moment, unless the share price drops to the “right” level, says Chairman Tan Sri Lim Wee Chai.
“We have obtained the approval from the shareholders and are on standby for the share buyback programme any time, as we have sufficient net cash of RM360 million on standby.
“However, making a profit out of share buyback is not our main focus as we are not in the business of buying back shares,” he said when chairing the company’s presentation at the two-day 12th Invest Malaysia Kuala Lumpur (IMKL 2016) here yesterday.
Lim said the company had carried out a share buyback twice previously from which it had gained a profit, but currently will continue to concentrate on the main focus areas of quality improvement, cost efficiency and business expansion.
Meanwhile, he said the company will have its secondary listing on the Singapore Stock Exchange on June 28.
“The additional listing will improve the company’s image, improve the liquidity, create value to investors and shareholders, as well as increase the shareholders’ confidence in the company,” he said.
He also said the company, which currently has 27 factories (22 in Malaysia, four in Thailand and one in China), will add about seven factories in five years’ time.
On the implementation of the minimum wage in Malaysia beginning July 1, 2016, which will see about an 11 per cent increase in salary to RM1,000, Managing Director Lee KM said the move would only result in about a one per cent rise in the company’s labour cost.
Currently, labour cost constitutes about 10 per cent of Top Glove’s total cost.
Lee said the company will absorb the cost and would not increase glove prices. — Bernama