KUALA LUMPUR, July 13 — Top Glove Corporation Bhd has emerged as the third biggest company on Bursa Malaysia, overtaking Tenaga Nasional Bhd (TNB), as the glove maker’s market capitalisation increased to RM64.73 billion as of the close of trading today.

As at 5pm, Top Glove ended 9.5 per cent or RM2.08 higher at RM24 with 32.6 million shares traded.

The counter hit its all-time high of RM24.50 today, and is now behind the top two biggest stocks in terms of market capitalisation — Maybank (RM88.7 billion) and Public Bank (RM71.9 billion).

Meanwhile, TNB’s market value was RM64.58 billion at the close of trading today.

Top Glove chairman Tan Sri Lim Wee Chai said the world’s largest glove maker is aiming to build two factories every year to keep pace with the global demand for rubber gloves amidst increased usage in the medical industry and heightened hygiene awareness among people due to Covid-19.

He said the company currently has 45 factories, of which 34 are glove factories with 700 production lines that have the capacity to make a total of 78.7 billion pieces of gloves per annum.

Top Glove also remains open to mergers and acquisitions, joint-ventures and diversification opportunities.

In a note today, Kenanga Research said it has raised Top Glove’s target price (TP) to RM32, taking into account the management’s guide that August  gloves average selling price is set to be 30 per cent higher month-on-month instead of earlier guidance of +10 per cent.

MIDF Research said it expects Top Glove’s production to grow by 36 per cent from 73.8 billion pieces in the third quarter of 2020 to 100.4 billion pieces in the fourth quarter of 2021.

Hence, it upgraded Top Glove to a "Buy” from a "Neutral” with a revised TP of RM26.12 per share from RM17.30 previously.

AmBank Research meanwhile believes that the bullish momentum in Top Glove’s shares will continue to ascend toward the next technical TP of RM24.82 and RM26.62 as the stock has surged above the resistance level of RM20.16, with high trading volume. — Bernama