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

• 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.
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• 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.
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• increase in social compliance costs and
• higher labour costs.

Improved efforts in solving social compliance issues

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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/.

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 2 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 Dividend Payout Dates & Corporate Actions,
Top Glove News