Enviro-Hub maintains optimism on glove business despite weakened sentiment

GLOVE making has lost its allure, as demand tapers with the Covid-19 pandemic and the market struggles to absorb excess manufacturing capacity. The management of Enviro-Hub Holdings , however, is confident that its decision to diversify into the healthcare sector will serve its shareholders well over the medium term.

Enviro-Hub is among the Singapore Exchange-listed companies that announced a diversification into glove making last year – through the acquisition of Malaysian glove manufacturer Pastel Glove for S$46.8 million.

The company’s share price hit an all-time high of S$0.102 on Jan 13, 2021, a day after first announcing the diversification. The stock has since fallen some 52 per cent from that high, to S$0.049 as at Nov 15. At that level, Enviro-Hub has a market capitalisation of S$81.5 million and trades at 23 times its FY2021 earnings.