The Q2 performance among the top four glovemakers remained relatively strong with revenue higher by 3.3% q-o-q to RM12.2bil, while net earnings expanded by 4.7% q-o-q to RM6.3bil.
FOR a start, the market is aware that earnings expectation for this year is extremely bullish, mainly driven by the low base effect from last year.
Hence, on a year-on-year (y-o-y) basis, earnings momentum for the year is expected to be strong based on the assumption that Malaysia will move away from lockdowns as the vaccination drive takes precedence, and Malaysia reaches the much-talked-about herd immunity by next month.
As we know, the Q2’2021 economic performance was much better than expected as the nation’s economic output expanded by 16.1% y-o-y, reversing the deep dive of 17.1% economic contraction a year ago.
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