Gas price hike to have little impact on earnings of glove producers

PETALING JAYA: The upcoming revision in gas prices is not expected to cause a major dent to the earnings prospects of the rubber glove industry, as the gas price hike is deemed insignificant, say analysts.

MIDF Research, for one, noted that all four glove producers under its coverage – namely Top Glove Corp Bhd, Hartalega Holdings Bhd, Kossan Rubber Industries Bhd and Supermax Corp Bhd – would experience negligible impact on earnings of less 1% arising from the latest revision in natural gas tariff, as the increase in effective gas tariff was only 0.7% compared to the previous period.