Top Glove, Riverstone & UG Healthcare Positive on Rubber Glove Prospects
Global rubber glove industry to post 8%-10% annual growth in the next few years, mainly driven by increasing emerging market demand. Malaysia continues to be the top rubber glove manufacturer globally with c.63.0% market share. While near-term headwinds (competition, raw material prices, and currencies) remain, glove manufacturers are positive on structural growth trends of the industry and remain committed to their respective capacity expansion plans. SGX lists three rubber glove plays with a combined market capitalisation of S$3 billion. Top Glove Corporation is the largest stock in this segment at S$2 billion.