PETALING JAYA: Top Glove Corp Bhd
is expecting its profit margin in its second quarter of the financial year ending Aug 31,2020 (FY20) to rise by between 20%-40%.
“Our profits in the second half will definitely be much better than the first half of the year. The average selling price (ASP) has increased, especially from April to June 2020, so in the third quarter we would see a much better profit margin ranging from 20%-30% extra on the improvement of ASPs and increase in capacity which leads to a reduction in fixed costs, ” its founder and chairman Tan Sri Lim Wee Chai said during a conference call with reporters, analysts and fund managers yesterday.
The rise in profit margin is due to the spike in orders from the Covid-19 global pandemic, Lim said. “Every month we increase about 3-5% of the average selling price (ASP) for the next three months.
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