Top Glove Corp Bhd, the world’s largest glove maker by volume, reported a net profit of RM50.67 million for Q3 FY2024, a turnaround from a net loss of RM130.59 million in the same period last year.
This recovery was aided by gains from property disposal and unrealized foreign exchange gains. However, the company still faced a net loss of RM58.24 million for the first nine months of FY2024, an improvement from the previous year’s loss. Revenue fell by 5.6% to RM1.68 billion.
Top Glove Profitable
Analysts remain cautious about the sustainability of this recovery. Kenanga Research and Phillip Capital both maintain “sell” ratings due to overcapacity in the glove sector and ongoing challenges, predicting a meaningful recovery only by 2025.
Conversely, RHB Investment Bank has a “buy” rating, optimistic about future demand recovery and favorable operating dynamics in the second half of the year.
Despite the positive quarterly results, Top Glove and the broader glove sector face significant challenges ahead.
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