KUAN KAM HON @ KWAN KAM ONN
Flagship: Hartalega Holdings Bhd
Net worth: RM4.4bil
KUAN derives his wealth from flagship Hartalega Holdings Bhd where he is executive chairman.
He controls 49.3% of the company.
A self-made tycoon, Kuan founded the company in the early 1980s and was instrumental in growing it to become the world’s largest manufacturer and distributor of nitrile gloves.
It has infrastructure built to support the production of 22 billion gloves per year and exports to 40 countries.
Glove makers, including Hartalega, staged multiple rallies in 2015 on the back of the strengthening of the US dollar against the ringgit.
However, a sharp reversal in the exchange rate ensued last year, resulting in the easing of their share prices.
Shares of Hartalega were down by 19% to RM4.83 as at the end of last year from RM5.94 a year before, giving the stock a market cap of RM7.93bil.
Correspondingly, Kuan’s estimated wealth comes in lower at RM4.44bil from RM5.37bil a year before – moving him one notch lower to No. 11 on the list.
At 70, Kuan still plays an integral role in the company, but has passed some day-to-day running of the business to his two sons.
Hartalega is ramming up its capacity, albeit at a moderate pace, via its next-generation integrated glove manufacturing complex at Sepang.
According to analysts, Hartalega is expected to see volume output at a 17% compounded annual growth rate in FY17-FY19 at an assumed 85% utilisation rate based on management’s capacity guidance.
The plan is to increase capacity to 42 billion gloves yearly by 2020. Even so, the company’s net gearing has remained relatively low at around 10%, underlining its prudence in maintaining a strong balance sheet whilst in the midst of its expansion plans.
Source: The Star