Top Glove

[winston]

vested

2Q Results

Revenue: +60%; RM 884m
EPS: RM 30m;
Net Asset: Rm 0.58

https://www.bursamalaysia.com/market_in ... id=3536132

[winston]

vested

Top Glove targets stronger sales in 2HFY2025, fuelled by improved conditions in US market

By Izzul Ikram

On a quarter-on-quarter basis (q-o-q), sales volume to Europe declined 23% in the second quarter ended Feb 28, 2025 (2QFY2025) but was flat on a year-on-year (y-o-y) basis.

Sales to North America rose 13% q-o-q.

March onwards the Chinese are no longer competitive [in the US].

Europe constituted 40% of Top Glove’s sales volume in 2QFY2025, followed by North America with 23%, Asia (22%), Latin America (8%), the Middle East (4%) and Africa (3%).

The stronger earnings were on the back of a surge in sales and a higher utilisation rate of 58% versus 40% in 2QFY2024, enabling cost efficiencies.

Maintained its target utilisation rate of 70% for FY2025, despite falling short in 2QFY2025. Utilisation rate was 58% for the quarter.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/748671

[winston]

vested

Top Glove faces rising risks from Chinese rivals, analysts flag after weaker-than-expected 2Q

Will likely turn in smaller-than-expected profits for fiscal 2025, analysts said while flagging rising risk from Chinese rivals.

Most US customers have completed their frontloading activities. “Additionally, Chinese manufacturers have started to capture market share in the non-US market.”

Most research houses are cautious, with 13 ‘hold’, three ‘sell’ and only five ‘buy’ calls while the average target price has fallen to RM1.08,

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/748753