KUALA LUMPUR: Hartalega Holdings Bhd
is reiterating optimism over demand recovery in the glove industry, as well as the likelihood of local manufacturers benefiting from US tariffs on Chinese glove imports.
Coming into 2025, the glove maker said global oversupply pressures have eased amid capacity optimisation by key domestic producers and the exit of newer players.
"An improving demand trend can be seen with the commencement of restocking activities across key consumption markets," it added in comments accompanying a results filing with Bursa Malaysia.
Meanwhile, it said the higher US tariffs on rubber medical glove imports from China, which came into effect in January 2025, is likely to provide further impetus for Malaysianmanufacturers to regain their footing in the US.
For the third quarter of its 2025 financial year, Hartalega reported a net profit of RM19.51mil, which was down from RM22.38mil in the year-ago quarter, owing to higher operating expenses and a higher tax on profit. Earnings per share retreated to 0.57 sen from 0.66 sen previously.
This was despite revenue coming in at RM738.19mil, a jump up from RM415.64mil in the comparative quarter, as sales volume surged 73% year-on-year (y-o-y).
For the nine months period to Dec 31, 2024, Hartalega recorded a net profit of RM60.06mil as compared to a net loss of RM2.39mil. Revenue climbed to RM1.97bil from RM1.31bil in the year-ago period.
Despite the improving prospects, the group maintained the sector will face ongoing headwinds, including persistent global oversupply as market adjustment continues.
"Strong competition among domestic and regional producers continues to put pressure on average selling prices.
"Additionally, global shipping constraints driven by geopolitical unrests in the Middle East continue to affectglobal trade routes and caused shipment delays.
"Furthermore, front-loading by U.S. customers at the end of 2024 in anticipation of higher tariffs is expected to moderate short-term demand," it said.
