PETALING JAYA: The outlook for Malaysia’s glove industry is turning brighter as Top Glove Corporation Bhd reported a strong fourth quarter ended Aug 31, 2025 (Q4’25) with a net profit of RM38.6 million compared to a net loss of RM6.6 milliom year-on-ear (YoY).
This makes up the company’s full-year net profit of RM109.1 million for FY2025 compared to a loss of RM64.9 million YoY, driven by improving demand from the United States and early signs of price stabilisation.
In a statement today, Top Glove said its exports to the US have continued to rise, now making up 38% of total sales compared with only 18% three quarters ago. The company expects double-digit sales volume growth in FY2026, supported by steady order replenishment and healthier pricing.
Top Glove was recently upgraded to an ‘AA’ rating by MSCI for environmental, social and governance performance.
Other local producers such as Hartalega Holdings Bhd and Kossan Rubber Industries Bhd have also been showing better numbers given the higher utilisation rates and inventories have returned to normal levels.
Analysts maintain positive views on the sector’s leading names, pointing out that both sales volume and average selling prices (ASP) are gradually improving.
After several years of price pressure and oversupply, more disciplined competition among Chinese players, some of whom have begun raising their ASP slightly, suggests that the market is moving towards a more sustainable balance between demand and supply.
“The glove sector is gradually regaining stability as US demand picks up and excess capacity continues to ease. FY2026 is likely to mark the start of a more sustained recovery, supported by improving margins and better earnings visibility. Malaysian manufacturers remain competitively positioned through tighter cost control, enhanced ESG practices, and resilient global healthcare demand,” said Rakuten Trade Sdn Bhd research head Kenny Yee.
Rakuten Trade CEO Kazumasa Mise said the recovery of the glove sector underscores Malaysia’s resilience in export-driven manufacturing and presents renewed opportunities for investors. “As fundamentals gradually improve, investors may reassess exposure to leading sector names supported by stronger demand visibility and more disciplined industry dynamics.”
Despite near-term risks from potential price competition and tariff shifts, analysts view the medium-term outlook positively as the sector enters a consolidation phase. Lower input costs, with natural latex prices falling 14% and nitrile latex declining 10% quarter-on-quarter, are expected to further support profitability over the coming quarters.
Analysts forecast Top Glove’s net profit to grow by 24% YoY to RM135 million in FY2026, with utilisation rates expected to exceed 70%. They have maintained an “Outperform” rating on the counter.
