Top Glove is apparently the world’s largest rubber glove maker. They are based in Malaysia and produce over 30 billion gloves that they sell to over 850 customers in 180 countries. I would imagine that “world’s largest anything” might have a sizeable moat as they are most likely able to have higher margins due to efficiencies of scale. Another reason why I might look more deeply into Top Glove is because I feel their product is pretty recession-proof. Sterile, rubber and latex gloves are mandatory for medical professionals around the world. If you’re handling dangerous or fragile materials, you must have protection.
Taking a cursory look at the financials, their net income (I assume that what they call “profit attributable to equity holders” is the same as net income) has steadily increased from 2002. I also would think that their production costs have decreased substantially along with the price of oil. This could be an interesting investment and might merit further research. The ticker symbol is TGLVY.
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