KUALA LUMPUR, Oct 7 (Bernama) -- Top Glove Corporation Bhd’s share price rose in the early trading session after the company posted higher net profit and revenue in its financial year ended Aug 31, 2026 (FY2026).
At 10.44 pm, Top Glove added two sen to 89.5 sen, with 162.49 million shares traded.
The rubber glove manufacturer announced in a stock exchange filing that its net profit jumped to RM307.96 million in FY2026 compared with RM105.33 million registered in FY2025, and higher revenue of RM4.23 billion versus RM3.49 billion previously.
For the fourth quarter of FY2026, Top Glove recorded a higher net profit of RM157.63 million from RM34.83 million, while revenue leapt to RM1.25 billion from RM893.56 million in the same period last year.
MBSB Investment Bank Bhd (MBSB IB) said Top Glove’s FY2026 core earnings came in above its expectation by 22 per cent and consensus by 23 per cent.
“We are optimistic on the glove sector and Top Glove’s strategies to mitigate the internal risks of manpower shortages and gas tariff hikes and improve its overall operations. As such, we revise our earnings forecast for the group and maintain a ‘buy’ call with a revised target price (TP) of RM1.13 per share,” it said in a note.
Top Glove will remain focused on cost containment and maintaining elevated average selling price (ASPs) in FY2027, while improving product quality to support premium pricing. ASPs are expected to increase by US$2-US$4 per 1,000 pcs in the near-to-midterm; the geopolitical situation would determine if the cost pass-through would hold up in FY2027.
Kenanga Investment Bank Bhd said Top Glove’s FY2026 results beat expectations.
“Looking ahead, we believe the pre-pandemic fourth quarter of 2026 (4Q 2026) earnings before interest, taxes, depreciation and amortisation margin of 17 per cent would be unsustainable due to a challenging operating environment driven by rising cost pressures from higher gas tariffs, potential minimum wage increases, and ongoing industry oversupply,” it said.
Kenanga IB has raised the company’s FY2027 net profit forecast by 50 per cent to reflect better-than-expected margin improvements, “lifting our ASP assumption from US$20 to US$23 per 1,000 pieces.”
“Consequently, we increase our target price to 82 sen per share and reiterate our ‘market perform’ call,” it said.
-- BERNAMA