Top Glove Corp Bhd’s recent financial results exceeded most analysts’ expectations, mainly due to stronger-than-expected margins.
TA Research, in its note to clients, said that on a quarter-on-quarter (q-o-q) basis, higher net profit was underpinned by an adjustment in average selling prices (ASPs), which rose 17%, alongside a 1% increase in sales volume.
Coupled with cost optimisation initiatives, the glove maker’s profit before tax margin expanded by 5.4 percentage points to 9.2%, while plant utilisation decreased by three percentage points to 86%, despite higher production running capacity of 68 billion pieces.
Top Glove’s net profit more than doubled to RM81mil in the third quarter ended May 31, 2026 (3Q26), from RM34.75mil a year earlier, buoyed by higher sales, price adjustments and cost efficiencies.
Source : the star