PETALING JAYA: Top Glove Corp Bhd
is expected to post improved financial results for its final quarter of the financial year ended Aug 31, 2026 (4Q26), helped by improved sale and pricing power.
Phillip Capital Research noted the company likely expanded its installed capacity to 72 billion pieces in 4Q26 (up from 64 billion in financial year 2025 or FY25), with plans to add an additional six billion pieces of capacity in FY27.
“We expect 4Q26 earnings to improve quarter-on-quarter (q-o-q) to RM95mil to RM100mil (4Q25: RM31mil; 3Q26: RM89mil), supported by a modest recovery in plant utilisation to about 82% (from 81% in 3Q26) and 2% q-o-q growth in sales volume.
“Average selling prices (ASPs) should increase about 1% q-o-q, reflecting the lagged benefit of price increases implemented in May to June 2026, while a stronger US dollar should provide additional earnings tailwind,” the research house stated in its latest report on rubber glove maker.
The production capacity growth in FY27 will be executed by progressively reactivating three idle plants on a line-by-line basis at a capital expenditure of RM17mil with the pace of reactivation contingent on foreign worker availability as well as broader market conditions.
The higher ASP forecast is due to the company facing cost pressures.
Raw material inputs account for 46% of total production costs, with nitrile and natural latex prices projected to rise by sound 30% and 4%, respectively, in October compared to August levels, Phillip Capital noted.
Additionally, natural gas prices, which make up 13% of production costs, are expected to jump by around 30% q-o-q in the final quarter of the year.
In response, Top Glove is expected to raise nitrile ASPs by U$2 to US$2.5 per 1,000 pieces in October and a further US$1.5 to US$2 per 1,000 pieces in November.
Other local glovemakers are also expected to follow with similar price increases.
The research house added Top Glove’s management expects full-year FY26 blended ASP to reach around US$19 per 1,000 pieces.
It noted that the market environment is seeing improved pricing discipline, particularly among Chinese manufacturers who are curtailing aggressive price cuts.
And with the ASP increases planned, the research house forecast Top Glove’s ASP premium over Chinese competitors has narrowed to about US$0.50 per 1,000 pieces, down from US$1 to US$1.50 in FY25.
In terms of market share, Malaysia’s share of the US glove market has contracted to about 50% (from 60% in 2025) as Chinese players expand production in regional hubs like Vietnam (15% to 20% US share) and Thailand (10% to 15%).
Top Glove is focusing on expanding its presence in Europe, which offers higher profit margins.
