PETALING JAYA: The European Union’s (EU) ban on Chinese firms from medical device tenders last week may be positive for Malaysian rubber glove makers in the near term, but the sector itself is facing headwinds, analysts say.
CIMB Research said the development could result in stronger demand from EU buyers seeking alternatives to China-sourced gloves.
The EU was Malaysia’s second-largest glove export market by region in 2023, accounting for an estimated 28% to 30% of Malaysia’s total glove exports.
The research house said of the companies under its coverage, Top Glove Corp Bhd
and Supermax Corp Bhd, stand to benefit the most, given their relatively larger exposure to the EU market.
Top Glove’s total sales volume to Europe was about 40% as of its second quarter (2Q25), while Supermax’s was about 25% to 30% for its 3Q25.
Among the glove makers, Kossan Rubber Industries Bhd remains CIMB Research’s preferred pick in the sector.
It has a “buy” call for the stock with a target price of RM2.10 a share,
It also maintained “hold” calls for Top Glove with a target price of 95 sen per share, Hartalega Holdings Bhd at RM2.40 and Supermax at 80 sen.
However, CIMB Research said it expects any uptick in EU demand for gloves from other countries including Malaysia to be short term.
