- Top Glove (SGX:BVA)'s 2Q/1HFY26 results were in line with our expectation but below consensus. Short-term disruption from the war could offer business opportunities for Top Glove given its exposure to both nitrile and natural rubber (NR) gloves, providing an alternative for price-sensitive customers.
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2QFY26: Higher sales volume offset FX impact
- Excluding MYR1.4m in one-off items, Top Glove’s 2QFY26 core net profit came in at MYR32.2m (+6.4% y-o-y, -7% q-o-q), lifting 6MFY26 core net earnings to MYR66.7m (+1.7x y-o-y). This accounted for 43%/39% of our/consensus FY26E forecasts.
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- The improvement in 2QFY26 earnings was driven by higher sales volume (+23% q-o-q, +57% y-o-y), lower raw material costs and a higher utilisation rate of 89% (vs 73% in 1QFY26).
Key takeaways from results concall
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