Top Glove stock enters earnings normalization phase in FY27
Published on 11/13/2026 at 03:30 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSTop Glove outlook enters normalization phase
- CGS International expects earnings to normalize in FY27 after unusually strong recent results.
- Foreign-worker constraints could shift future capacity investment toward Thailand.
- Improving supply-demand conditions and tighter pricing discipline support a healthier industry outlook.
Top Glove Corporation Bhd is entering a normalization phase after exceptionally strong recent earnings, but profitability should remain structurally healthier than in fiscal years 2022 to 2024, according to a November 4, 2026 report by The Star, citing CGS International Research.
Margins face a tougher comparison
CGS International expects Top Glove's gross profit spread to normalize toward US$3.50 per thousand pieces in FY27, compared with an unusually strong US$6 in the fourth quarter of FY26. Glove average selling prices stood at about US$22 per thousand pieces at the end of October, up US$3 from September.
The research house expects normalized net profit to increase from RM377.3 million in FY26 to RM525.3 million in FY27 and RM549.4 million in FY28. It reiterated an Add rating and an unchanged target price of RM1.14.
Thailand gains strategic importance
Malaysia's foreign-worker constraints could steer more future investment toward Thailand. Top Glove operates two Thai factories with combined annual capacity of eight billion pieces and is targeting another six billion pieces of annual production capacity by the end of FY27.
The group also has about 23 billion pieces of dormant annual capacity that could be reactivated with relatively modest upgrades. CGS International said restarting inactive capacity across the industry would involve greater costs and operational hurdles, which could limit the return of excess supply.
Efficiency supports the investment case
Top Glove manufactures and sells gloves across Malaysia, Thailand, China and international markets. The company is working to align its environmental, social and governance disclosures with peers Hartalega Holdings Bhd and Kossan Rubber Industries Bhd as it seeks re-entry into the FTSE4Good Bursa Malaysia Index.
Top Glove competes with Hartalega and Kossan in the Malaysian glove industry, while Chinese producers remain an important competitive factor. CGS International highlighted the group's leaner labor structure and broad product offering, but identified stronger Chinese competition and higher labor costs as key risks.
Top Glove Corporation Bhd
- Company: Top Glove Corporation Bhd
- ISIN: MYL7113OO003
- Business: Glove manufacturing and sales
- Key markets: Malaysia, Thailand, China and international markets
- Analyst view: Add rating with RM1.14 target price
Malaysia's equity market remains the broader setting for glove-sector investors; see Current market reports.
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