The glove-making business is one of those sectors that does not call out for attention. The recent COVID-19 pandemic has brought the sector out of hiding and into the limelight. It is a simple business that is making many companies very profitable.
This is not a common business in Australia, in fact, apart from VIP Gloves Ltd (ASX:VIP) there is no other company on the Australian Stock Exchange that can call themselves glove makers.
Malaysia is the market leader in the glove-making industry. The big four major producers - Top Glove Corporation Berhad, Hartalega Holdings Berhad, Supermax Corporation Berhad and Kossan Rubber Industries Berhad - are world market leaders in this sector.
Story of gloves
In this episode of Coffee with Samso, Sebastian Chang, non-executive director of the company, shares with the story of VIP and the business of glove makers.
Sebastian shows us that the business is not about the COVID-19 pandemic, but it is all about Occupational Health and Safety factors that are driving the business.
Sebastian also highlights why he thinks the glove business will keep its course of high demand and growing sales. Profit margins will be sustained and the ASP (Average Selling Price) will continue to increase, but at a slower rate for the next 12 to 24 months.
About VIP Gloves Ltd
VIP Gloves Ltd (ASX:VIP) is a public company whose shares are traded on the Australian Securities Exchange (ASX).
Malaysia is the home to many of the world's largest rubber and nitrile glove producers. Over the past 10 years, Malaysia has grown to become the world's largest producer of rubber and nitrile gloves, accounting for over 60% of global glove production.
VIP Gloves was established in 2016 to manufacture nitrile disposable gloves from its plant located in Selangor, Malaysia.
Currently, its products are sold to local and overseas distributors under original equipment manufacturer (OEM) basis.
Holding strong to its core values, the company ensures continuous improvement efforts are undertaken beginning with research and development through to manufacturing and delivering the best quality gloves for customers - hence best quality and smart choice.
About How Weng (Sebastian) Chang
Non-executive director and member Executive Committee
How Weng (Sebastian) Chang has over 25 years’ experience in the regional investment environment in Malaysia, in the areas of stockbroking, corporate finance, fund management and venture capital investments in Malaysia as well as in the Asian region. He also served as chief operating officer and held directorships in several public listed companies and their subsidiaries.
Sebastian is currently the principal and chief executive officer of a boutique financial consulting firm which provides services to clients in the areas of public flotation, mergers and acquisitions, and corporate restructuring exercises.
He was educated in Malaysia and USA and holds a Bachelor of Business Administration (cum laude) degree majoring in Finance & Banking, and Management.
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