leadf
logo-loader
viewVIP Gloves Ltd

VIP Gloves director makes on-market share purchase as new production lines come on-stream

Glove makers are now looking at more than 12 months lead time for forward orders, given the current sales backlog as against one to two months during pre-COVID levels.

VIP Gloves Ltd - VIP Gloves director makes on-market share purchase as new production lines come on-stream
Global inventory levels have also fallen drastically to less than 10 billion pieces (equivalent to 10 days of stockpile)

VIP Gloves Ltd (ASX:VIP) non-executive director David Chee Cheong Low has demonstrated his confidence in the company’s growth potential as four new production lines come on-stream progressively and demand for gloves continue in a post-COVID 19 setting.

Between September 9 and 11, Low purchased 180,000 shares for a total consideration of $14,300.

VIP has cleared all of its old orders and financial year 2021 will reflect higher average selling price, boosting margins.

Production lines three and four were fully commissioned in July 2020 and additional production lines will be commissioned in stages over the next 18 months, ensuring a continuous growth trend in financial years 2021 and 2022.

Lines five and six are targeted to be commissioned in the first quarter of 2021.

Global inventory levels have fallen drastically

There are unprecedented capacity roll-outs by global glovemakers as well as non-traditional glovemakers to meet demand.

Glove makers are now looking at more than 12 months lead time for forward orders, given the current sales backlog as against one to two months during pre-COVID levels

Global inventory levels have also fallen drastically to less than 10 billion pieces (equivalent to 10 days of stockpile) from 60 days previously.

VIP sees minimal risk of an over-supply situation as new capacities will only come onstream progressively and should be able to meet the rising global demand.

Quick facts: VIP Gloves Ltd

Price: 0.08 AUD

ASX:VIP
Market: ASX
Market Cap: $59.65 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of VIP Gloves Ltd named herein, including the promotion by the Company of VIP Gloves Ltd in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

VIP Gloves Ltd sees 'tremendous growth potential'

VIP Gloves Ltd's (ASX:VIP) Sebastian Chang tells Proactive's Andrew Scott he expects the increase in revenue from nitrile glove production to continue into the financial year 2021. He says the revenue growth is attributed to higher average selling prices (ASP) of gloves, which is expected to...

1 week, 1 day ago

2 min read