5 Things To Know About Enviro-Hub (SGX: L23), A New Player In The Gloves Industry
27 Jul 2021
As featured in Dollars and Sense
In the early days of the COVID-19 pandemic, stocks of glove companies (both the supplies and the shares) were in hot demand globally. As healthcare providers rushed to stock up sufficient supplies of personal protective equipment (PPE) including gloves, investors rushed to buy the stocks of glove suppliers. In fact, the top performing stock on SGX for 2020 was Medtecs International, a supplier of medical consumables and PPE, with a stock gain of 2600%. While it has been more than a year since the start of the pandemic, the continued surge of the virus (including the more infectious Delta variant) has ensured that the demand for medical PPE has remained high.
It is in this environment that Enviro-Hub (SGX: L23) has repositioned its business focus to recycling of e-waste and supply of medical supplies, especially specialty gloves. In June 2021, Enviro-Hub received FDA regulatory clearance for its nitrile medical-grade examination gloves, which means that the company will be able to export their medical-grade gloves to US, where they command a higher price. This allows Enviro-Hub to join the estimated 20% of glove production that has obtained the 510(k) FDA certification.
Additionally, the company has been streamlining their business operations and have been divesting business segments that are not line with their new business focus: the synergistic segments of recycling e-waste and supplying medical PPE. This includes the sale of their property investments which were used to generate rental income. With the divestments, the company expects to double down on sustainability through their e-waste recycling operations and enter the new business segment of medical supplies.
For interested investors who expect the glove industry to continue its strong performance, here are 5 things to know about Enviro-Hub’s business.
Read on here.