Global demand for gloves still on uptrend

Top Glove HQ“While our top picks in the sector are currently Hartalega and Top Glove Corp Bhd, we also have added calls on Supermax Corp Bhd and Kossan. We continue to like the sector given its strong earnings prospects, as it is a key beneficiary of the robust global glove demand owing to Covid-19," CGS-CIMB said.

PETALING JAYA: Global glove supplies are expected to grow between 15% and 25% annually over the next two to three years, on the back of higher usage and increased healthcare awareness.

Despite glovemakers’ aggressive expansion plans to capture the demand growth, CGS-CIMB Research said global supply growth over the next two-to-three years would likely still not catch up with the increase in demand.