- Top Picks: Riverstone, Hartalega, and Kossan Rubber.
- Industry demand and supply dynamics are showing recovery signs, as April-May order volumes look to have picked up sturdily. We think further gas tariff normalisation and ASP trend stabilisation could eventually propel profitability in 2024 and now expect a meaningful demand recovery trend by 2H24 before capacity expansions recommence by 2025/2026.
ASP.
- - Read this at SGinvestors.io -
- According to our channel checks, Chinese glove makers’ ASPs are expected to increase to US$16-17 from US$15-16. The continued narrowing of the ASP gap means the prolonged price war is approaching its tail-end, in our view, which ultimately allows Malaysian manufacturers to compete via product quality rather than price.
Demand.
- - Read this at SGinvestors.io -
- Meanwhile, China glove exports contracted by 15% m-o-m in February following a 4% m-o-m growth in January.
- All in, we maintain our 2024 global glove demand growth of 7%, which is premised on the recovery of glove restocking activities in 2H24.
Supply.
- Read more at SGinvestors.io.
Oong Chun Sung RHB Securities Research | Singapore Research RHB Invest | https://www.rhbgroup.com/ 2024-04-03
More views on outlook of manufacturing / technology sector:
Analyst Reports on Singapore Manufacturing & Technology Sector
