ONE cannot be blamed from feeling a bit apprehensive of budding Malaysian glove makers who are able to secure lucrative orders even prior to getting their production line fully set up.
This is not to undermine their business commitment, just that such business model or dealing is tantamount to putting the cart before the horse.
With no intention to undermine their business prowess, hopefully they know how to deliver their end of the bargain to customers who have signed up with them.
Regardless, congratulations are in order for the property developer-cum-personal protective equipment (PPE) Iconic Worldwide Bhd as it sealed an order of 1.2 billion pieces of gloves over a 12-month period from Hong Kong-based Limmas Corporation Ltd for a supply of its Iconic Powder Free Nitrile Examination Gloves.
The value of the project is estimated at US$108 mil based on a price assumption of US$9 per 100 pieces of gloves (12 million boxes).
According to Iconic Worldwide, its PPE manufacturing facility for gloves and face masks has reached 70% completion after only 100 days of construction – which is way ahead of schedule – and that the group has already started installation of its glove production machinery.
Based on current average selling prices, the group estimates that the output of gloves and face masks could translate into a revenue of RM1 bil and RM100 mil each for its financial year ending March 31, 2023 (FY2023).
On April 2, Iconic Worldwide announced that Iconic Medicare has successfully registered its polymer patient examination glove – the Iconic Nitrile Glove and Latex Patient Examination Glove – with the US Food & Drug Administration (FDA).
Iconic Worldwide had previously already obtained the CE and ISO certifications for its three-ply face mask and nitrile gloves, all of which will enable the group to export its products overseas.
Its managing director Datuk Tan Kean Tet further revealed that all the 12 production lines at its production plant which have a capacity to produce 3.5 billion gloves per annum “have been fully taken up”.
“The MOU will also provide valuable data for the manufacturing and financial planning processes,” he pointed out.
“This will also enable Iconic group to offer new business opportunities that will expand its revenue base and enhance shareholders’ value, as well as reduce the reliance on existing business segments.”
At 11.22am, Iconic Worldwide was up 2 sen or 4.08% to 51 sen with 17.46 million shares traded, thus valuing the company at RM215 mil. – April 9, 2021