- Additional 100% US tariffs on China exports from the current high base have limited incremental impacts on Malaysian glovemakers’ earnings.
- Oversupply and sub-optimal utilisation rates are likely to continue to weigh on earnings recovery prospects.
The US raised China’s tariffs by 100%, but limited impact to Malaysian glovemakers’ earnings.
- - Read this at SGinvestors.io -
- Nevertheless, we assess that China’s medical gloves export volume within the US market in 2Q25-3Q25 has dropped significantly since earlier reciprocal tariffs. This is mainly because ASPs are no longer competitive vs competitors even at the previous 80% tariff rate.
Finding grounds from China’s red ocean strategy, industry oversupply remains challenging.
- - Read this at SGinvestors.io -
- Furthermore, some China players are exploring capacity expansion in other ASEAN countries such as Indonesia, Vietnam and Thailand, adding pressure to the current oversupply dynamics.
Anticipating modest earnings recovery in 2H25-2026, lifted by US customers’ restocking cycle.
- Read more at SGinvestors.io.
Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
Jack Goh UOB Kay Hian Research | https://research.uobkayhian.com/ 2025-10-14
More views on outlook of manufacturing / technology sector:
Analyst Reports on Singapore Manufacturing & Technology Sector
Read also UOB's most recent report:
2026-05-13 Glove Sector - Frontloaded Optimism.
Previous report by UOB:
2026-03-19 Top Glove 2QFY26 - Propelling Forward Despite Challenges Ahead.
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
