0215 GMT - Top Glove's earnings could strengthen in fiscal 2H as glove demand improves, Maybank IB analyst Wong Wei Sum writes in a note. The glove maker expects sales to pick up from March-April as front-loaded inventories deplete and restocking resumes, she says. Top Glove prioritizes pricing strategy and cost-cutting to stay competitive with Chinese rivals, protecting its non-U.S. market share, she adds. Management also indicated that capacity expansion to 70 billion pieces annually, up from 64 billion pieces currently, will depend on utilization rising to 65%-70% from 58%, she notes. Maybank raises Top Glove's rating to hold from sell but trims the target price to MYR0.92 from MYR1.08, citing potential supply risks from Chinese competitors. Shares are 0.6% lower at MYR0.89. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
March 20, 2025 22:15 ET (02:15 GMT)
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