Malaysian glovemakers face delayed profit recovery until 2025, CGS-CIMB says
CGS-CIMB Securities maintained its “underweight” stance on Malaysia’s rubber-glove sector, warning that pricing pressure from regional rivals will delay a return to profitability until at least 2025.
Source: Free Malaysia Today · July 21, 2026 at 8:29 AM · AI-assisted report
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KUALA LUMPUR, 21 JULY 2026 —
CGS-CIMB Securities maintained its “underweight” stance on Malaysia’s rubber-glove sector, warning that pricing pressure from regional rivals will delay a return to profitability until at least 2025.
Market Impact
The brokerage projected the Big Four—Top Glove Corp Bhd, Kossan Rubber Industries Bhd, Supermax Corp Bhd and Hartalega Holdings Bhd—will swing from an aggregate net loss of RM456 million in calendar 2023 to a modest profit of RM21 million in 2024 and RM568 million in 2025. “The net profit outlook looks unexciting relative to current valuations,” it said in a 16 November note.
Malaysian producers remain at a cost disadvantage, with prices undercut by US$3–4 per 1,000 pieces by lower-cost rivals in China and Thailand, CGS-CIMB said. This pressure is expected to persist for the next 12–18 months, keeping earnings before interest, tax, depreciation and amortisation per 1,000 pieces at a structurally lower level.
The research house warned that pandemic-era stockpiles have swollen inventories, limiting near-term volume growth and capping utilisation gains across the sector.
Hartalega is expected to rebound fastest because it has reduced the most capacity. “Top Glove and Supermax may still have plenty of excess capacity to shed, hence their utilisation rates could recover more slowly,” CGS-CIMB said.
The brokerage maintained “hold” ratings on Supermax and Kossan but kept “reduce” calls on Hartalega and Top Glove, citing weaker margins and slower utilisation recovery.
Shares of the Big Four staged a rebound in November. Top Glove, Supermax, Hartalega and Kossan all ended the month higher than at 31 October. Bursa Malaysia’s Healthcare Index climbed 6.63% month-on-month to 1,780.63 on 30 November, after peaking at a six-month high of 1,867.02 on 23 November.
Malaysian investors have rotated into glove counters this month, lifting the index above its 200-day moving average. The move follows three consecutive years of losses for the sector, during which Top Glove alone wrote off billions of ringgit in asset impairments.
Related: CIMB