Top Glove reported a 3QFY25 core net profit of MYR44.8m — below our expectation but above consensus.
Top Glove expects its utilisation rate (UR) to improve in 4QFY25, anticipating a resumption in restocking activities amid better clarity on the US tariff policy and declining inventories.
Earnings lag but volume is recovering
- Read this at SGinvestors.io -
- Read this at SGinvestors.io -
Key takeaways from results concall
Pricing strategy remains the key driver of sales. To stay competitive, Top Glove is implementing ongoing cost-cutting measures to ensure its products are priced attractively compared to China glove makers, especially in non-US markets.
Top Glove expects sales volume to pick up in 4QFY25, supported by improved clarity on the US tariff policy and depleting customer inventories. Utilisation rate stands at 65% in June 2025.
Top Glove’s exposure to the US market increased to 26% of 3QFY25 sales volume, up from 23% in 2QFY25. It has also put its Vietnam expansion plans on hold for now, depending on US tariff policy and market conditions.
Earnings adjustments
Read more at SGinvestors.io.
Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
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