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Glove sector

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just a little guide, hope its usefull

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Glove sector

  1. 1. TYPES OF GLOVE • Latex Gloves • Nitrile Gloves • Vinyl Gloves
  2. 2. COMPARISON TYPES OF GLOVE
  3. 3. SELECTED COMPANY • Supermax Corporation Berhad • Hartalega Holdings Berhad • Top Glove Corporation Berhad
  4. 4. -World class latex glove conglomerate. -Leading international manufacturer, distributor & marketer. -Export over 145 countries. -Produces up to 16 billions pieces gloves per year. -Has 9 manufacturing plants. -Have 6 distribution centres corporate offices.
  5. 5. -Establish in 1988. -One-Line-Operation---------43 Production Line= 8 billion gloves per year. -Tradition of Excellence-->>>>>>State-Of-TheArt Equipment, Efficient system & Dedicated people. -International recognized standard(ASTM,JIS,EN455 -Open & Honest approach.
  6. 6. -Establish in 1991, 1 factory & 3 production lines. -Emphasis R&D. -Collaborates closely to government agencies. -Now, One-Stop Glove sourcing centre. -Offer high-quality, high value-added & costeffective rubber gloves.
  7. 7. RATIO ANALYSIS
  8. 8. Hartalega Holding Berhad Quick ratio 2.5 2 -INCRESING -DISABILITIY TO PAY THEIR OBLIGATION WITHOUT SELLING THEIR INVENTORIES 2.29 1.97 1.5 1 0.95 Quick ratio 0.5 0 2008 2009 Debt Ratio 2010 40.00% 30.00% -DECREASING -HAVE A GOOD DEBT MANAGEMENT 33.34% 32.10% 25.99% 20.00% Debt Ratio 10.00% 0.00% 2008 2009 2010
  9. 9. Return On Asset 40.00% 30.00% 25.84% 20.00% -EFFECTIVELY GENERATE THE PROFIT 29.87% 22.55% Return On Asset 10.00% 0.00% 2008 2009 2010 Total Asset Turnover 1.5 -INCREASING -EFFECTIVE INVESTMENT ON ASSETS 1 1.18 1.19 0.96 Total Asset Turnover 0.5 0 2008 2009 2010
  10. 10. Supermax Corporation Berhad Quick Ratio 1.5 1.24 1.42 1 -INCRESING -DISABILITIY TO PAY THEIR OBLIGATION WITHOUT SELLING THEIR INVENTORIES 0.78 Quick Ratio 0.5 0 2008 2009 -DECREASING -HAVE A GOOD DEBT MANAGEMENT Debt Ratio 2010 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 56.02% 40.88% 35.09% Debt Ratio 2008 2009 2010
  11. 11. Return On Asset 20.00% 15.00% 13.39% -INCREASING -EFFECTIVELY GENERATE PROFIT 14.92% 10.00% 5.00% Return On Asset 4.96% 0.00% 2008 2009 2010 Total Asset Turnover 0.95 0.9 INCREASING -EFFECTIVE INVESTMENT 0.85 ON ASSETS 0.8 0.92 0.86 2008 Total Asset Turnover 0.85 2009 2010
  12. 12. Top Glove Corporation Berhad Quick Ratio 3 2.64 2 1 1.61 1.14 -INCREASING -HAS ABILITY TO PAY THEIR OBLIGATION WITOUT SELLING THEIR INVENTORIES Quick Ratio 0 2008 2009 2010 -DECREASING -HAS A GOOD DEBT MANAGEMENT Debt Ratio 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 38.10% 25.29% 18.63% 2008 2009 2010 Debt Ratio
  13. 13. Return on Asset 20.00% 18.25% 15.00% 10.00% -INCREASING -EFFECTIVELY GENERATE PROFIT 14.84% 9.74% Return on Asset 5.00% 0.00% 2008 2009 2010 Total asset Turnover 2 1.5 -INCREASING -EFFECTIVELY INVESTMENT ON ASSETS. 1 1.24 1.35 1.52 Total asset Turnover 0.5 0 2008 2009 2010
  14. 14. EXTERNAL ANALYSIS •Economic perspective •Government policy •Environmental effect
  15. 15. Economic growth • Not stable due to the global economic slowdown • The crisis give adversely affect on the related rubber industry in the world. • Malaysia's economic growth moves slowly over the previous few years, the country's economy in 2008 is said to suffer a decline.
  16. 16. Rate of change of money • During this period, the United States dollar (U.S.) has also declined against the Malaysian Ringgit in about 8%, while the major developed economies grapple with uncertainty. • The increasing in the RinggitMalaysia, Thai Baht, and the Chinese Renminbi against the dollar the United States cause the impact on the international trade.
  17. 17. Decreasing in rubber prices. • Latex prices have corrected when the weather improves. • Latex price has declined by about 27% from a high of RM10.99 on 11 April 2011 to about RM7.98 on October 24, 2011.
  18. 18. Subsidies on the natural gas • The glove sector is mostly depends on natural gas on their production running. • In the recent year, the government tends to vanish the subsidies on the natural gas.( Almost 90% of the uses of the natural gas are needed in the production of gloves.)
  19. 19. • The glove sector reduces their cost of production through this subsidy. Therefore, most of the glove sectors will face the problem of increasing cost in the production of glove. • • As a result the price of the glove will be increase and the demand on the glove during the humid time will be decrease.
  20. 20. Curb on foreign workers • The government has made restrictions on the entry of foreign workers in the country. • The Malaysian Government intend to increase social welfare by opening up job opportunities for local people. • This is a problem to manufacturers to get the low-wage workers. ( For the glove sector, 2.8% or foreign workers absorbed becomes operators and laborers from 1.8 million foreign workers in the Malaysia.) • Therefore, this sector meet the challenges of insufficient local labor to work in the production. MARGMA urged the government to immediately approve the entry of foreign workers and discuss the urgent issue of minimum wage worker.
  21. 21. Rate of electric and water • The economy is not fully recovered when the government announced worsening petrol price increase of RM0.78 or 41%, effective June 5, 2008, • The increase in electricity tariff by 26% which is also effective from 1 July 2008 and gas prices by 71% to RM 22.06.
  22. 22. • Government is concern on the welfare of society, so they are going to implement this policy. Consequently, this will affect the industry sector related. For example, the uses of electricity in glove manufacturing as at the high level of consumption. Therefore, this will affect on the increasing in product cost per unit for each glove produced. Hence, this policy should not go drastically without concern on the effected industry that contribute to the growth of economic.
  23. 23. Pandemic • H1N1 factor also play a role in influencing the rate of production. • The companies take action to increase the production of their gloves, due to the high demand for rubber gloves. • Rubber gloves are used by the medical sector in treating patients that had infected by this dangerous virus. • The first wave of H1N1 has become benchmarks for companies of rubber gloves to further increase the production of rubber gloves . (they felt the possibility of a second wave of H1N1 may occur in the near future).
  24. 24. Tsunami • Japanese tsunami has caused the price of raw rubber declined. • The decline in rubber prices has provided an opportunity for these companies to earn higher returns on sales yield their gloves.
  25. 25. • These companies can buy raw rubber material with a low price but still sell it with the normal market price. • Moreover, the demand for gloves as an earthquake and tsunami had also increased. In conclusion, an earthquake and tsunami that struck Japan early in 2011 give positive impact on the rubber glove companies, which is the increase in production operations and gain on the sale of these gloves.
  26. 26. CONCLUSION We know that all the selected company face various kind of problems and obstacles during operation. The stability of the economy , government polict and environment factor sinfluences the rate of performance of the company.
  27. 27. • Glove factors are kindly lucked as although the world crushing them down, but demand for gloves still remain favorable. • Many changes and the successful progress shown by the company to remain competitive

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