Top Glove commits to 20% special dividend on 'good profit performance'

MAINBOARD-LISTED Top Glove Corporation has committed to a special dividend of 20 per cent, in addition to its existing dividend policy of a 50 per cent payout ratio on profit after tax and minority interests (PATMI).

The total 70 per cent dividend payout ratio on PATMI will be applicable for the second quarter to the fourth quarter of FY2021, the Malaysia glove maker said in a bourse filing on Monday.

This is in consideration of its "good profit performance and strong cash flow", as well as to reward shareholders, Top Glove said.

Following its announcement at 1.14pm on Monday, Top Glove called for the lifting of a trading halt it requested shortly after the midday break.

Shares of the company hit an intraday low of S$1.75 in early trade, before rebounding to S$1.88 as at 2.51pm, after its announcement on the proposed special dividend. That said, the counter is down S$0.12 or 6 per cent from its Dec 31 close of S$2. Some 10.1 million shares changed hands, and no married deals were recorded by Monday afternoon, according to Shareinvestor data.

Meanwhile, other glove-maker counters gained in the first trading session of the new year. Riverstone rose S$0.06 or 5.4 per cent to S$1.17 as at 2.51pm, while UG Healthcare edged up one Singapore cent or 1.7 per cent to 59.5 cents.

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Last month, Top Glove - which is also listed on the Malaysia bourse - posted a net profit of RM2.38 billion (S$781.5 million) for the first quarter of fiscal year 2021 ended November, some 20 times higher than RM111.4 million in the year-ago period.

Accordingly, the group's earnings per share jumped to 29.64 sen from 1.5 sen in the corresponding quarter a year ago.

Revenue for the quarter more than trebled to a record RM4.76 billion, while sales volume surged 34 per cent from the previous year. The group attributed its robust sales figures to strong demand for gloves in both developed and emerging markets amid the coronavirus pandemic.

In light of its strong financials, Top Glove said then that it was looking to reward some 100,000 public shareholders with quarterly dividend payments for FY2021, with higher payments incorporating a special dividend of 6 per cent.