Top Glove returns to the black in 2Q

KUALA LUMPUR: Price competition is seen to rise further for Top Glove Corp Bhd as it seeks to maintain market share amid heightened competition with China-based players.

However, other tailwinds for the group might come from further market share gains in the United States if the trade war steps up further and expectations of a gradual decrease in raw material prices.

The biggest rubber glove manufacturer in the world also noted an improved economies of scale which would help reduce total costs and keep it competitive.

The competition is currently “very intense” outside of the US market as China-based companies which were affected by reduced sales from the trade war try to sustain volumes through selling in other regions, said its director of marketing Lim Jin Feng.

“We do see competitive prices quoted by the Chinese but we will do our best to get close or match these prices. Our cost structures have improved in the past few months and we have improved our factory efficiencies.

“Going forward, we will be aggressive and competitive especially in the Europe and Middle Eastern market so that we won’t lose too much of market share to these players,” Jin Feng said at a press briefing in conjunction with its second quarter financial year 2025 results yesterday.

“Besides lower raw material costs, all the others such as utility, gas, electricity and water or upkeep we are controlling. All these contribute to glove production – we are monitoring and improving this every month,” its executive director Ng Yong Lin said.

Its executive chairman Tan Sri Lim Wee Chai said the company is confident of putting up a strong competition with China players due to the better cost structure today.

“Things have improved for us and we were able to save on labour costs – it is cost efficient since we don’t recruit so many now and we save a lot here. We are very fit now and can compete with China, Malaysian or even Thai glove manufacturers,” Lim said.

The glove maker posted a net profit of RM30.28mil in its second quarter, a swing back to the black from a net loss of RM51.2mil in the same quarter a year ago.

Revenue was at RM883.65mil, up from RM550.33mil before. The group said its improved performance was a sustained uptrend in glove orders on the back of recovering global demand, as well as trade diversions resulting from US tariffs on China glove exports, which spurred continued growth in sales revenue.