GEORGE TOWN: Iconic Worldwide Bhd expects to close the 2022 financial year (FY22) with a double-digit percentage growth for its revenue and bottom line.

       Group executive director James Tan told StarBiz the group’s rubber glove and face-mask manufacturing and property businesses would each contribute 50% to its turnover and bottom line.

       “In the third and fourth quarters of the current financial year, we will ship out 500 million pieces of rubber gloves to the United States, Europe, Africa, Middle-East and South-East Asia.

       “The gloves will be shipped out on time for it to materialise in our financial year 2022 accounts,” he said.

       In the second quarter ended Sept 30, 2021, the group a posted net profit of RM3.87mil, an increase of 27.7% year-on-year, while revenue jumped 63.4% to RM19.06mil from RM11.66mil previously.

       For the first six months of the current financial year ending March 31, 2022, Iconic Worldwide net in a profit of RM7.14mil compared to RM4.3mil in the previous corresponding period. Revenue more than doubled to RM37.58mil from RM16.46mil previously.

       According to Tan, the group’s glove production plant on a 5.5-acre site in Batu Kawan started operation recently.

       Iconic Gloves display

       “The facility is equipped with 12 production lines, of which four are being utilised. We plan to use all 12 lines by February 2022,” he said.

       Tan said the plant would be able to produce three billion pieces of gloves per annum.

       “Based on the current selling price, the value of the three billion pieces is around RM500mil,” he added.

       The group’s face masks will also contribute to its FY22 revenue.

       “We are currently producing 80 million pieces of face mask per annum with a RM50mil value for the local market,” he added.

       Tan said the price of nitrile, an essential raw material of gloves, dropped from US$4,000 (RM16,850.00) per tonne to US$1,400 (RM5,897.50) per tonne, triggering the cost of production and the selling price of gloves to plunge correspondingly.

       The group’s RM130mil Iconic Point commercial project in Juru will generate the remaining 50% of its FY22 revenue.

       “The RM130mil gross development value (GDV) will be realised in early 2022. So far, about 80% of the GDV has materialised in the 2022 financial year accounts,” he added.

       Tan said the group owned 50 acres of land bank in Johor, Melaka, Port Dickson and Penang.

       “We are exploring residential and commercial projects for the land bank,” he said.

       Iconic Hotel Bukit Mertajam

       The group plans to launch 700 units of affordable housing and commercial shop lots with a RM250mil GDV in Bukit Mertajam in early 2022.

       “We will build high-rises priced between RM200,000 and RM400,000.

       “In the financial year 2023, the property division’s contribution will drop to 20%, while the glove and face mask manufacturing divisions will generate 80% of revenue,” he said.

       He said the group is looking for more land in Seberang Prai and on the Penang island for its property business.

       “Whenever the opportunity arises, we will launch affordable housing and commercial projects,” he added.

       According to the Malaysian Rubber Glove Manufacturers Association, global demand for gloves is projected to hit 420 billion pieces in 2022, from 330 billion pieces in 2020.

       “The projected annual growth is 20%. Malaysia is expected to ship out about US$5bil (RM21.06bil) worth of gloves in 2020.

       “This year, the export figure should be about 20% higher. In 2020, Malaysia is expected to produce 67% or 220 billion pieces of the total global glove demand.

       “Our target is to manufacture at least 5% of the total global glove demand,” Tan said.