Rubber Gloves Sector - CGS-CIMB Research 2022-04-01: Malaysia To Stay At Forefront Of Glove Industry

Rubber Gloves Sector - Malaysia To Stay At Forefront Of Glove Industry

Published:
TOP GLOVE CORPORATION BHD (SGX:BVA) | SGinvestors.ioTOP GLOVE CORPORATION BHD (SGX:BVA)
  • The Malaysia Rubber Glove Manufacturers Association (MARGMA) expects global glove demand (volume) to reach 452bn pieces in 2022F, growing by 12-15% y-o-y. In addition to higher demand for medical usage (better healthcare awareness post COVID-19), this will be driven by demand from non-medical sectors (F&B, electronics, etc.) as they benefit from the lifting of global lockdown measures.
  • - Read this at SGinvestors.io -
  • MARGMA is confident that Malaysia will retain its leadership position given its:
    1. strong R&D efforts,
    2. proven track record over the years and
    3. competitive pricing.

ASP will normalise but higher than pre-pandemic levels

  • MARGMA expects average selling prices (ASPs) to head towards a more normalised level in 1H22F (but higher than pre-pandemic levels in 2019 of US$21-23 per 1k pieces). This is on the back of slower buying patterns from glove customers (due to stocking up activities during peak of COVID-19) and more supply-led dynamics in the industry.
  • - Read this at SGinvestors.io -
  • increase in social compliance costs and
  • higher labour costs.

Improved efforts in solving social compliance issues

  • Read more at SGinvestors.io.




Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.




Walter AW CGS-CIMB Research | https://www.cgs-cimb.com 2022-04-01



More views on outlook of manufacturing / technology sector:
Analyst Reports on Singapore Manufacturing & Technology Sector

Read also CGS-CIMB's most recent report:
2023-12-05 Top Glove - Need To Shed Excess Capacity.

Previous report by CGS-CIMB:
2023-04-03 Rubber Glove Makers - Not Completely Out Of The Woods Yet.

Price targets by other brokers at Top Glove Target Prices.

Listing of research reports at Top Glove Analyst Reports.

Relevant links:
Top Glove Share Price History,
Top Glove Announcements,
Top Glove Dividends & Corporate Actions,
Top Glove News Articles





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