- Top Glove (SGX:BVA) is set to announce its 4QFY25 quarterly results on 9 Oct. We expect its profit to improve slightly from 3QFY25, premised on the recovery of sales volume and easing of raw material prices.
- - Read this at SGinvestors.io -
Results preview.
- We expect Top Glove’s profitability to improve from 3QFY25, premised on the recovery of sales volume and easing of raw material prices. However, ASP should remain under pressure for 4QFY25, given that the export volume increase was directed mainly towards non-US market (based on Malaysia’s July export volumes), while the sector pricing power remains weak.
- All in, we expect Top Glove to report a 4QFY25 core net profit of MYR3.4m, bringing its FY25F core net profit to MYR2.6m.
Competition set to intensify.
- - Read this at SGinvestors.io -
- We expect ASPs for generic gloves produced at these new plants to be US$1-2 (per 1,000 pieces) cheaper than the US$18-19 currently offered by Malaysian manufacturers.
- Overall, the commissioning of Chinese facilities in Indonesia and Vietnam, with an estimated annual capacity of 10bn pieces (~6% of Malaysia’s Big-5 capacity), poses a growing threat to Malaysia’s export share in the US market.
Earnings forecast.
- Read more at SGinvestors.io.
