Last week in mid Jan22, Iconic officially launched its RM200mil gloves and face mask manufacturing facility in Batu Kawan.
This facility will house 12 double former gloves dipping lines (capacity 3.3bil per year) and 20 medical face mask production lines (capacity 220mil per year).
It has obtained CCC in early Nov21 and at the time of the official launch in Jan22, 6 nitrile gloves lines have already started running since Dec21.
The rest of the 6 gloves lines and 20 face mask lines are expected to start by Mac22.
Since the end of year 2020, share price of the 7 listed medical gloves companies in Malaysia dropped tremendously as their profits fell due to declining average selling price (ASP).
For new kids on the block who recently diversified into medical gloves manufacturing such as Iconic, their revenues (and probably profits) will grow as the contribution from gloves kicks in.
How will the market value the newcomers? Will their share price drop like the existing gloves counters, or rise due to increasing profit?
