KUALA LUMPUR (June 18): Top Glove Corp Bhd (KL:TOPGLOV) expects average selling prices (ASPs) for gloves to ease in the coming months after hitting a peak in May, as raw material costs decline.
According to joint managing director Lim Jin Feng, who was speaking at its post-results briefing, blended ASPs rose to US$27-US$28 (RM111.18-RM115.30) per 1,000 pieces in May, but prices for July deliveries have already eased to US$21-US$22, close to an estimated US$20 in the third quarter, signalling a moderation in pricing momentum.
Its executive chairman Tan Sri Dr Lim Wee Chai said the decline in glove selling prices should be offset by lower raw material prices, allowing the group to maintain an earnings before interest, tax, depreciation and amortisation (Ebitda) margin of around 15%.
Top Glove booked an Ebitda of RM439 million for the nine months ended May 31, 2026, on the back of a revenue of RM2.98 billion.
Wee Chai added that nitrile glove raw material prices are easing to around US$900 to US$1,000 per tonne in the coming months.
The projection marks a significant decline from the US$1,500 per tonne earlier cited by the group during its previous briefing, when supply disruptions due to the Middle East crisis drove up nitrile latex prices and prompted glove manufacturers to raise selling prices.
Top Glove’s net profit more than doubled to RM80.99 million in the third quarter ended May 31, 2026 (3QFY2026) from RM34.75 million a year earlier, driven by higher sales volume, selling price adjustments and cost efficiencies.
Quarterly revenue rose 31.9% year-on-year to RM1.1 billion in 3QFY2026 from RM830.25 million.
On Thursday, Top Glove's share price closed down 2.5 sen or 3.36% at 72 sen, giving the group a market capitalisation of RM5.92 billion. Year to date, the stock has gained 12%.