SGX Market Updates

SGX Listed Rubber Glove Makers Constructive on Long Term Outlook Amidst Moderating Demand


17 March 2022

  • SGX listed rubber glove plays averaged +16.3% total returns in the past 5 trading sessions, outperforming the STI (+3.0%) amidst potential disruption to supply chain from Chinese manufacturers and identification of a new hybrid COVID variant.

  • In recently concluded earnings, SGX listed rubber glove maker trio - Top Glove, Riverstone and UG Healthcare pointed to a challenging environment and moderating near-term demand which is leading to ASPs decline. However, they are still constructive on longer-term outlook with some still continuing previously planned capacity expansion.

  • The trio has a combined market cap of more than S$6 billion, with a combined capacity of over 110 billion pieces of gloves per annum.

Rubber glove makers have seen increased investors focus in past 2 years, as the COVID-19 pandemic has led to a rapid rise in global demand for disposable glove in these unprecedented times. Specifically, over the past two years, the 3 most traded SGX rubber glove manufacturers and distributors posted an average total return of 185.5%, as compared to STI’s +44.5%.

As the pandemic stabilizes, demand for gloves has retreated from the peak seen in 2021. Entrants of new players (e.g. from China) have also led to intensifying competition and adds to pressure on average selling prices (ASPs). According to a media report (The Malaysian Reserve), Malaysian glove manufacturers contribute up to 67% of global supply, with China about 10%.

In the past 5 trading sessions, SGX’s rubber glove makers trio averaged +16.3%* total returns and outperforming STI’s +3.0%. Market reports suggested COVID-19 lockdowns in some parts of China may potentially lead to delayed delivery of gloves from Chinese manufacturers. During their last earnings reports, the companies pointed to a challenging environment and moderating demand as near-term headwinds but are constructive on longer-term industry outlook.

* returns skewed by Riverstone with a total return of 40.6%. Riverstone announced dividends of MYR0.38 per share in CY2022, representing > 10% of current traded price.

SGX Listed Rubber Glove Makers Trio Total Returns

Outlook commentaries from latest earnings from SGX’s rubber glove makers trio

Top Glove (SGX:BVA)
  • Business environment anticipated to be challenging and competitive in the immediate term as pandemic gradually comes under control.
  • Additional glove supply and ensuing pricing/margin pressure may in turn result in industry consolidation, as part of business cycle.
  • Glove demand will continue to grow steadily, albeit not at the accelerated but unsustainable pace during the pandemic.
  • Long-term industry outlook promising with opportunity still abound.
  • Remains cautious and will scale back on its expansion plans for the interim, ready to reinstate expansion plans as required when demand eventually picks up.

Riverstone (SGX:AP4)
  • As previously announced, add additional capacity of up to 1.5 billion pieces of gloves by end 2022, bringing annual production capacity to up to 12.0 billion pieces of glove.
  • Macroeconomic headwinds (e.g. USD fluctuations, volatile raw material prices, rise in overall production costs) remain challenges.
  • Restrictions in Malaysia caused by pandemic and possible reimposition of movement control restrictions in Malaysia could pose an additional challenge.
  • Competition from newcomers and Chinese manufacturers a recent challenge.

UG Healthcare (SGX:8K7)
  • 1H FY22 (end Dec ’21) revenue mainly impacted due to ASPs decline, shipment delays to key markets, customers’ preference to hold lower inventory in view of ASP downtrend, lower production volumes.
  • New factory to increase production capacity by an additional 1.2 billion pieces of gloves annually delayed due to temporary shutdown of construction in Malaysia.
  • Competition in disposable gloves sector continues to intensify, particularly in upstream manufacturing.
  • Placing more emphasis on strengthening proprietary “Unigloves” market position, expanding customer base and broadening product portfolio at downstream distribution operations.
  • Continues to seek diversification in non-glove investment opportunities in the healthcare related sectors to complement glove products that could leverage on its entrenched downstream distribution network.

This article is provided by SGX My Gateway.

SGX My Gateway

SGX's investor education portal with market, product and investment information and events. Sign up now at to receive our investment updates and economic calendar.

This document is not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Singapore Exchange Limited (“SGX”) to any registration or licensing requirement. This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document is for general circulation only. It does not address the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a financial adviser regarding the suitability of any investment product before investing or adopting any investment strategies. Use of and/or reliance on this document is entirely at the reader’s own risk. Further information on this investment product may be obtained from Investment products are subject to significant investment risks, including the possible loss of the principal amount invested. Past performance of investment products is not indicative of their future performance. Examples provided are for illustrative purposes only. While each of SGX and its affiliates (collectively, the SGX Group Companies) have taken reasonable care to ensure the accuracy and completeness of the information provided, each of the SGX Group Companies disclaims any and all guarantees, representations and warranties, expressed or implied, in relation to this document and shall not be responsible or liable (whether under contract, tort (including negligence) or otherwise) for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind, including without limitation loss of profit, loss of reputation and loss of opportunity) suffered or incurred by any person due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information, or arising from and/or in connection with this document. The information in this document may have been obtained via third party sources and which have not been independently verified by any SGX Group Company. No SGX Group Company endorses or shall be liable for the content of information provided by third parties. The SGX Group Companies may deal in investment products in the usual course of their business, and may be on the opposite side of any trades. SGX is an exempt financial adviser under the Financial Advisers Act (Cap. 110) of Singapore. The information in this document is subject to change without notice. This document shall not be reproduced, republished, uploaded, linked, posted, transmitted, adapted, copied, translated, modified, edited or otherwise displayed or distributed in any manner without SGX’s prior written consent.

SGX Stock / REIT Search


Trust Bank Referral Code