KUALA LUMPUR: There could be a further narrrowing of losses for Mah Sing Group Bhd's manufacturing division as the average selling price (ASP) of gloves trends higher while raw material prices decline.
In a results review, RHB Research said the ASP of gloves has improved to US$20-21 per 1,000 pieces.
At the same time, raw material prices have eased to about US$860 a tonne while gas prices have been revised lower by about 25% from June.
"Assuming sales volume continues to grow, we expect the gloves manufacturing segment to reach its breakeven level sooner," said the research firm.
This comes following the announcement of Mah Sing's first quarter results, which showed a narrowing of losses in the manufacturing division due to effective cost management and better plant utilisation.
"Revenue for the manufacturing segment stayed largely unchanged from last quarter, but operating losses narrowed quite significantly.
"1Q23 loss before interest and tax was only at MYR3.68mil compared with MYR9.05mil in 4Q22 and MYR7.77mil in 1Q22," said RHB.