- Top Glove (SGX:BVA) plans to reactivate 6bn pieces of idle capacity across four factories.
- Sequential sales volume improvements in natural rubber products lifted utilisation to ~75%, offsetting the impact of a weaker US$/MYR and declining ASPs. Weekly order inflow has risen to ~1.4bn pieces, exceeding current production capacity and extending lead times to over 60 days, indicating improving demand visibility.
1QFY26 (Aug) results were in line with expectations.
- - Read this at SGinvestors.io -
- Revenue was largely flat (-0.7% q-o-q, -0.3% y-o-y) despite a 4% q-o-q increase in sales volume (+17% y-o-y), as blended ASP declined to US$17.3/1,000 pieces (-4% q-o-q, -11% y-o-y).
- - Read this at SGinvestors.io -
Sequential volume growth led by natural rubber gloves.
- Latex remained the primary growth driver (+7% q-o-q), supported by aggressive pricing strategy. Latex powdered and powder-free ASPs declined 12% and 9% vs 3QFY25 averages, while nitrile ASPs were more resilient (-4% vs 3QFY25) with flat q-o-q volumes. As a result, the sales mix shifted to 54% nitrile and 36% latex (from 56%:35% in 4QFY25).
- Meanwhile, sequential volume growth into Asia (+20% q-o-q) and Latin America (+9% q-o-q) were largely latex-driven, while the other regions saw a marginal decline q-o-q.
- That said, the higher utilisation across both latex and nitrile lines also drove a larger q-o-q decline in cost per carton than ASP, preserving cost savings.
Re-activating of idle capacity
- Read more at SGinvestors.io.
