Glove Sector Recovery in Motion: Top Glove Leads Renewed Optimism into 2026
Kuala Lumpur, 18 November 2025 — The outlook for Malaysia’s glove industry is turning brighter as Top Glove Corporation Bhd reported a strong fourth quarter ended Aug 31, 2025 (4QFY2025) of RM38.6m compared with a net loss of RM6.6m Year-on-Year (YoY). This makes up the company’s full year net profit of RM109.1m for FY2025 compared with a loss of RM64.9m YoY, driven by improving demand from the United States and early signs of price stabilisation.
Top Glove’s exports to the United States have continued to rise, now making up 38 percent of total sales compared with only 18 percent three quarters ago. The company expects double-digit sales volume growth in FY2026, supported by steady order replenishment and healthier pricing.
Top Glove was also recently upgraded to an AA rating by MSCI for ESG performance, reflecting progress in governance, labour practices, and sustainability. The upgrade reinforces Malaysia’s growing reputation as a trusted source for ethical and high-quality glove manufacturing.
Other local producers such as Hartalega Holdings Bhd and Kossan Rubber Industries Bhd have also 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 (ASPs) are gradually improving.
After several years of price pressure and oversupply, more disciplined competition among Chinese players, some of whom have begun raising ASPs slightly, suggests that the market is moving toward a more sustainable balance between demand and supply.
“The glove sector is gradually regaining stability as U.S. demand picks up and excess capacity continues to ease,” said Kenny Yee, Head of Research at Rakuten Trade. “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.”
“The recovery of the glove sector underscores Malaysia’s resilience in export-driven manufacturing and presents renewed opportunities for investors,” said Kazumasa Mise, CEO of Rakuten Trade Sdn Bhd. “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 (QoQ), are expected to further support profitability over the coming quarters.
Analyst forecasts Top Glove’s net profit to grow by 24% YoY to RM135m in FY2026, with utilisation rates expected to exceed 70%. They have also maintained an Outperform rating on the counter.
