Kenanga Research kept its 2025 and 2026 forecasts for Top Glove unchanged.
KUALA LUMPUR: Top Glove Corporation Bhd
is on track to achieve its sales volume target of 43 billion pieces of gloves by the end of the financial year ending Aug 31, 2025 (FY2025), driven by increasing orders and improved operational efficiency.
Its executive chairman, Tan Sri Dr Lim Wee Chai, said the target is achievable supported by rising demand and better management.
"We are confident of reaching a sales volume of 43 billion gloves for FY2025, as more orders are expected, particularly in March and April.
"Our cost efficiency and quality management have also improved compared to one or two years ago, strengthening our competitiveness and ability to meet this target,” he said in a virtual briefing today.
Meanwhile, Top Glove managing director Lim Cheong Guan said strong glove demand is expected to continue, particularly as sales in the United States (US) are anticipated to recover in the coming months once frontloaded stocks are depleted.
"While competition remains strong in other regions, the group’s diverse product portfolio allows it to adapt by offering different glove types that align with customer preferences and pricing requirements,” he said.
On average selling prices (ASPs), Lim noted that stronger pricing control in certain regions would enhance profit margins.
"No new expansion is expected in China due to the tariff issues. While some expansion outside of China may occur, it is expected to be limited in scale due to uncertainties regarding potential US actions on expansion beyond China,” he said.
Additionally, Lim stated that the group will continue reopening temporarily closed factories once the utilisation rate reaches around 70 per cent.
"As of the second quarter of FY2025 (2Q FY2025), our utilisation rate stands at 58 per cent. We will continue to monitor the supply and demand ratio,” he added.
Earlier, Top Glove returned to the black, posting a net profit of RM30.28 million in 2Q FY2025 compared with a net loss of RM51.20 million in the same period a year ago.
The group’s revenue for the quarter under review rose to RM883.65 million from RM550.33 million previously, mainly driven by a sustained uptrend in glove orders amid recovering global demand. - Bernama
