Careplus posts strong Q1 results, says glove prices may have peaked

KUALA LUMPUR: Glove maker Careplus Group Bhd posted a net profit of RM123.5mil in the first quarter on increased sales volume and higher average selling prices (ASPs).

Revenue in the three-month ended March 31 more than doubled to RM241mil compared with RM104.7mil a year ago.

Earnings was 23 sen a share. Careplus has declared an interim dividend payout of 2 sen a share.

"We are now running 34 lines with an annual capacity of 5.82 billion pieces of gloves," Careplus said in a filing with Bursa Malaysia today.

"By mid of June 2021, we shall complete installation 6 lines and another 8 lines by end of 2021, with an addition of 9 lines in planning stage to be completed by end 2022," it added.

Careplus joined other glove makers across the region in ramping up their production, as demand for the protective gear soared due the global Covid-19 pandemic.

Medical gloves have been in short supply since March 2020, pushing prices higher.

"The prospects remain generally good," Careplus said.

"The average selling price should have reached its peak in current quarter and began to soften gradually," it added.

The more cautious outlook came as other big producers Hartalega Holdings Bhd and Supermax Corp Bhd earlier this week warned that glove prices are coming off.

"Production and sales quantity will continue to rise with the additional production lines provided there is no major disruption by Covid-19 or labour availability," Careplus said.