Share prices of Malaysian glove makers are expected to remain relatively supported through the August earnings season, driven by windfall earnings in April and May, CIMB Securities analyst Chun Sung Oong says in a note. However, the outlook for 2H is expected to become more challenging as average selling prices decline alongside easing raw-material costs and persistent industry overcapacity, he says. The glove sector could remain oversupplied through at least 2027, as supply growth from new Southeast Asian capacity is expected to outpace global demand, he adds. Margin pressure may intensify as fixed costs remain elevated, Oong says. CIMB maintains its neutral rating on Malaysia's glove-manufacturing sector, pegging Kossan Rubber Industries as its preferred pick. (yingxian.wong@wsj.com)
Malaysian Glove Stocks May Remain Supported Until August — Market Talk
Earlier from Kossan Rubber Industries Bhd
- Kossan Rubber's Glove Pricing May Reach Peak in 2Q — Market Talk
- Kossan Rubber Industries Posts Quarterly Profit Attributable Of 39.5 Million RGT
- Kossan Rubber's Earnings Outlook May Be Supported Despite Cost Pressures — Market Talk
- Malaysia's Glove Industry Might See Further Consolidation — Market Talk