Malaysia Gloves Maker - UOB Kay Hian 2024-05-15: Plot Twist From Escalating US-China Trade Tension

Malaysia Gloves Maker - Plot Twist From Escalating US-China Trade Tension

Top Glove (SGX:BVA) | SGinvestors.ioTop Glove (SGX:BVA)
  • The precipitous tariff hike announced by US authorities on China’s medical-grade gloves beginning 2026 is poised to revitalise investors’ sentiment on the Malaysian glove sector.
  • While the sector’s recovery plot continues to thicken beyond post-pandemic eclipsing earnings and demand moderation, we anticipate domestic glovemakers to progressively reclaim market share from China, sustaining concrete ASP trajectories and future margin upticks.
  • - Read this at -

US increasing tariff on China medical-grade gloves in 2026 amid escalating trade tension.

  • Yesterday, US President Joe Biden unveiled steep tariff increases on an array of Chinese imports under Section 301 of the Trade Act of 1974. This includes a higher tariff of 25% (from current 7.5%) on China’s rubber medical and surgical gloves’ exports into the US beginning 2026.

Structural change likely altering nitrile gloves’ demand landscapes.

  • - Read this at -
  • While China players predominantly produces PVC vinyl and nitrile gloves (>85% of total sales in 2023), we see meaningful nitrile gloves demand flowing back to Malaysian manufacturers after the tariff hike is imposed.

US tariffs hike a cherry on the cake.

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Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @

Jack Goh UOB Kay Hian Research | 2024-05-15

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

Read also UOB's most recent report:
2024-03-21 Top Glove - A Setback In 2QFY24 With Silver Linings .

Previous report by UOB:
2024-01-12 Malaysia Gloves Maker - Overhyped Market Expectations Pose Short-term Downside Risk.

Price targets by 3 other brokers at Top Glove Target Prices.

Listing of research reports at Top Glove Analyst Reports.

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