Top Glove

[behappyalways]

Top Glove's 3Q net loss narrows q-o-q on higher selling prices, cost optimisation
https://theedgemalaysia.com/node/671455

[behappyalways]

Kenanga Research analyst Raymond Choo Ping Khoon said the 3QFY2023 net loss miss marked a nine-month (9MFY2023) net loss of RM464 million, which already exceeded both the research house's full-year net loss estimate of RM450 million and consensus forecast of RM461 million.


Top Glove bled heavier than analysts expected in 3QFY2023
https://theedgemalaysia.com/node/671657

[behappyalways]

Top Glove reports RM926.6 mil loss in FY2023
https://www.theedgesingapore.com/capita ... oss-fy2023

[behappyalways]

Top Glove remains in the red, with narrower losses of RM57.7 mil for 1QFY202
https://www.theedgesingapore.com/capita ... il-1qfy202

[winston]

not vested

Top Glove benefiting from returning demand

Replenishment activity picks up among customers, with the key US market continue to chart growth.

Company’s sales volume continues to rise month-on-month and the trend is expected to pick up in subsequent quarters, underpinned by inventory rebuilding by distributors.

Sales volume had strengthened 25% to 30% month-on-month, bringing utilisation rate to 65% to 70% versus our assumption of 55%.

Management is optimistic that average selling prices (ASPs) would rise by 5% to 15% or US$0.80 to US$1.50 per 1,000 pieces due to the uptick in demand and mitigation against the appreciating ringgit against the US dollar.

Exports to the United States, which account for 28% to 30% of the group’s geographical sales mix.

Weakening of predatory pricing by Chinese glovemakers as their capacity utilisation rises above 90% while revised US trade measures on gloves from China would see tariffs rising 50% in 2025 and 100% in 2026.

Head towards equilibrium in 2026 when there is no more net new capacity coming onstream while the global demand for gloves continues to rise by 15% per year.

Source: The Star

https://www.thestar.com.my/business/bus ... ing-demand

[winston]

not vested

Top Glove Corporation recorded a RM3.6 million (S$1.1 million) net loss for its fourth quarter ended Aug 31, narrowing losses from the RM461.7 million net loss clocked in Q4 of the previous year.

The glove manufacturer on Thursday (Oct 10) said losses shrank year on year on higher sales volume as customers continued to replenish their glove inventories, which improved utilisation rates and cost efficiency.

This translated to a loss per share of 0.04 sen compared with last year’s loss of 5.76 sen per share.

Source: Phillips

[winston]

not vested

Top Glove (TOPG MK) 4QFY24: Hours Before Dawn

TOPG’s core losses narrowed in 4QFY24.

Despite results being below our expectations due to unprecedented forex movement, several silver linings such as rising volume sales (+31% qoq) and ASP trends reinforced recovering industry dynamics.

Meanwhile, recent deterioration of US-China trade tension is catalysing meaningful demand flowback, allowing TOPG to progressively restore its pre-pandemic’s profitability in FY25-26.

Maintain BUY with a lower target price of RM1.31.

Source: UOBKH

https://39646150.fs1.hubspotusercontent ... (TOPG%20MK)%20241011.pdf?utm_medium=email&_hsenc=p2ANqtz-8Bu-Bo3Cbbko_ReXX2HVMB8aQ2m2185FuzW4jo04pD43gGeYqZWUgsvlbuILklzC42ohxeMX_H8M2UGBMzUJ4GLySPCA&_hsmi=328640942&utm_content=328640942&utm_source=hs_email

[winston]

not vested

Aims to be profitable in FY25E

Below expectations;

D/G to HOLD TOPG’s 4QFY24 core net loss of MYR26.2m (vs. MYR88m/MYR29m net loss in 4QFY23/3QFY24) was wider than expected.

4QFY24 plant utilisation rate (UR) improved to 60% (from 50% in 3QFY24), while blended ASP increased by +3% QoQ.

TOPG expects to turnaround in FY25 with a better plant UR and ASP.

We lower our FY25-26 net profit forecasts by 13-38%.

Our new TP is MYR1.08 (-2sen) based on unchanged 1.8x CY26E P/B. D/G to HOLD (from tactical BUY) given the limited upside to our TP.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/410258.pdf

[winston]

not vested

Top Glove faces ongoing headwinds from rising costs and currency woes — analysts

By Sankita Jayanandan

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/729834

[winston]

not vested

Top Glove, industry set to benefit from US tariffs

Tariffs being imposed on Chinese gloves may lead to US distributors shifting their purchase to Malaysian glovemakers

From February 2025, Chinese medical gloves face 60% tariffs from 50% and 110% tariffs in 2026 from 100%.

Such tailwinds allowed Top Glove to raise the average selling price (ASP) for its US nitrile gloves export by about US$1 per thousand pieces since Nov 24 and eventually towards the pre-pandemic level of US$23 per thousand pieces in 2025,” it said. Top Glove’s nitrile glove ASP stands at US$20 currently.

Chinese glovemakers dump their excess supply in Europe, where Top Glove’s sales have declined 3% to 5% but this has been largely offset by a 5% month-on-month rise in January 2025 in US sales.

Moving forward, we foresee Top Glove’s US sales mix increasing to 25% to 30% of total sales in 2025 (first quarter ended Nov 30, 2024 (1Q25: 18%), with the Europe region’s sales mix easing off towards 35% to 40% (1Q25: 47%).

Source: The Star

https://www.thestar.com.my/business/bus ... us-tariffs