What is the projected profit impact for Top Glove and Kossan due to EMCO?

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Projected Profit Impact for Top Glove and Kossan Due to EMCO

Maybank Investment Bank (Maybank IB) projects that a two-week suspension of glove factories in Selangor under the Enhanced Movement Control Order (EMCO) could lead to a 7.4 per cent decline in Top Glove's FY21 core net profit and a 16 per cent decline in Kossan's FY21 core net profit. These projections highlight the significant financial implications of operational halts for major glove manufacturers in Malaysia.
Impact on Top Glove's FY21 Core Net Profit

A two-week EMCO-induced shutdown of Selangor-based glove factories is expected to reduce Maybank IB's FY21 core net profit forecast for Top Glove by 7.4 per cent. This projection is based on the assumption that operations will be suspended for this specific period.
Impact on Kossan's FY21 Core Net Profit

Similarly, Maybank IB anticipates that Kossan's FY21 core net profit forecast will see a 16 per cent decrease, contingent upon a two-week suspension of its glove manufacturing facilities in Selangor due to the EMCO. This indicates a more substantial proportional impact on Kossan compared to Top Glove under the same hypothetical scenario.
Production Capacity Affected

The suspension of glove factories in Selangor under EMCO is anticipated to affect a considerable portion of the companies' total production capacity. Specifically, approximately 55 per cent of Top Glove's production capacity and 100 per cent of both Hartalega's and Kossan's production capacity are expected to be impacted by these operational halts.

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What is the projected profit impact for Top Glove and Kossan due to EMCO?

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