AmInvest Research retains neutral on glove sector

AmInvest Research said beyond the pandemic, it anticipates a structural change in the way gloves are used, forming a new normal where glove usage per capita will rise as hygiene measures become stricter.

KUALA LUMPUR: AmInvestment Research is maintaining its Neutral view on the glove sector as valuations for Top Glove, Kossan and Hartalega under its coverage are already fully reflected in the companies’ earnings outlook.

In its research note issued on Wednesday, it reckoned the average selling prices (ASP) will begin to ease after 1H2021 following the strong increase over the past nine months, and are already priced in.