Latest news with #Hartalega
Focus Malaysia
21-07-2025
- Business
- Focus Malaysia
Glove sector plunges down to 59% amid weak demand, tariff fears
Glove makers under Hong Leong Investment Bank (HLIB)'s coverage have declined significantly in the first half of 2025 (1H2025), with share prices down between -47% to -59%. The sector was first weighed down by growing investor risk aversion towards export-oriented sectors in early-2025 in view of the potential unfavourable reciprocal tariffs to be imposed on Malaysia imports by US President Trump post his inauguration. Sentiment was further dampened by earnings disappointments from Hartalega and Kossan in Feb 2025, which missed both our and consensus estimates. This was accompanied by a weak forward guidance from Hartalega, which flagged the possibility of returning to losses in upcoming quarters and raised concerns over Chinese peers' expansion into Southeast Asia (SEA). 'Based on our checks, sales orders for generic medical examination rubber gloves remain subdued since Feb 2025, with the US replenishment cycle guidance continuing to be pushed back,' said HLIB. According to the glove makers, the softness was primarily attributed to US distributors still sitting on the front-loaded inventories, while ex-US markets are facing fierce competition from Chinese players. We believe that the muted US demand faced by Malaysian manufacturers may also be linked to transhipment activities by Chinese peers, who rerouted shipments through Thailand, Indonesia, and Vietnam, before exporting to the US. This is evidenced by the rising market share and imported customs values from these countries, even as total US customs values for imported medical and surgical rubber gloves during March-April 2025 remained comparable to the front-loading period in October-November 2024. For pricing, glove makers have indicated the average selling point (ASP) for generic medical examination rubber gloves will remain in a downtrend due to lower raw material prices and ongoing fierce competition domestically and regionally. Based on our channel checks, there will be about 5-8 bil pcs/annum coming online in Vietnam and c.5bn pcs/annum in Indonesia by end-2025. In addition, we estimated that Intco will add 10 bil pcs/annum from China itself in 2025. On a positive note, there remains potential for a gradual demand shift among US buyers from vinyl gloves to nitrile rubber gloves should the ongoing 90-day tariff negotiations between the US and China end unfavourably. This substitution effect, estimated at an additional 28-38 bil pcs/annum, could help absorb the incoming supply from Intco's expanded capacity, thereby supporting the path toward restoring supply-demand equilibrium by 2026, based on our view. —July 21, 2025 Main image: Reuters
New Straits Times
21-07-2025
- Business
- New Straits Times
Kossan stands out as HLIB's sole 'Buy' in glove sector
KUALA LUMPUR: Hong Leong Investment Bank Bhd (HLIB) has maintained its "Neutral" stance on the glove sector for the second half of 2025 (2H25), with Kossan Rubber Industries Bhd as its sole "Buy"-rated stock. The firm set a target price of RM2.30 for Kossan, and issued a "Hold" rating on Hartalega Holdings Bhd at RM1.48, and a "Sell" call on Top Glove Corp Bhd with a target price of 60 sen. "Kossan distinguishes itself through its differentiated strategies and robust financial footing, against a challenging industry backdrop," HLIB said in a research note today. HLIB said concerns over a supply-demand imbalance in the glove sector remain elevated, driven mainly by the aggressive expansion of Chinese, Vietnamese and Indonesian peers. "Chinese Intco Medical's cost advantages, driven by automation and favourable input economics, continue to underpin its relatively aggressive pricing strategy. "Transhipment flows from China via Thailand, Vietnam, and Indonesia are also displacing Malaysian exports and delaying volume recovery in the US market," it said. HLIB noted that share prices for glove makers fell between 47 per cent and 59 per cent in 1H25, weighed by earnings misses and weak investor sentiment. "Hartalega and Kossan missed both quarterly and consensus expectations in February, while Top Glove also reported below-par results in March. "Investor confidence was further undermined by another round of earnings misses from Hartalega, coupled with a more bearish industry outlook guidance. "We believe that the muted US demand faced by Malaysian manufacturers may also be linked to transhipment activities by Chinese peers," the firm said. Meanwhile, HLIB expects average selling prices (ASPs) to stay subdued due to raw material prices and intense regional competition, as ASPs peaked in December 2024. On global supply, HLIB projects an additional five to eight billion pieces per annum in capacity from Vietnam and 0.5 billion from Indonesia by the end of 2025. "We estimated that Intco will add approximately 10 billion pieces per annum of glove production capacity from its operations in China alone in 2025," it added.
Free Malaysia Today
08-07-2025
- Free Malaysia Today
Salesman charged with fraud over sale of gloves worth RM5.1mil
P Dinesh allegedly deceived a person into believing 150,000 non-existent boxes of gloves were already in stock at Hartalega Sdn Bhd's warehouse. (Bernama pic) PETALING JAYA : A salesman pleaded not guilty in the Kuala Lumpur sessions court today to a charge of fraud involving the sale and purchase of gloves worth a total of RM5.1 million five years ago. P Dinesh, 36, together with Aspen Broadway Sdn Bhd director R Gopinatan Pillai, allegedly deceived a person into believing 150,000 non-existent boxes of Coats Nitrile Examination gloves were already in stock at Hartalega Sdn Bhd's warehouse. The victim transferred RM5.1 million into a bank account belonging to a law firm appointed by Aspen Broadway. The offence was allegedly committed at a condominium in Jalan Tun Ismail, Kuala Lumpur, on Nov 9, 2020, under Section 420 of the Penal Code, which provides up to 10 years' imprisonment, whipping and a fine if convicted. Judge Azrul Darus allowed Dinesh bail of RM100,000 with one surety and also ordered him to surrender his passport to the court and to report to a nearby police station once a month. Deputy public prosecutor Chow Siang Kong appeared for the prosecution while lawyer Akmal Taufik represented Dinesh. The court set July 28 for mention. On Feb 10, Gopinatan was charged with one count of fraud and seven counts of money laundering involving the sale and purchase of gloves.
The Sun
08-07-2025
- The Sun
Salesman pleads not guilty to RM5.1m glove fraud in Kuala Lumpur
KUALA LUMPUR: A salesman has denied allegations of cheating in a RM5.1 million glove sale fraud case dating back five years. P. Dinesh, 36, was charged alongside the director of Aspen Broadway Sdn Bhd for deceiving a buyer into believing 150,000 boxes of Hartalega gloves were available in stock. The victim transferred RM5.1 million through a law firm after being told the gloves were stored at Hartalega's warehouse. However, the stock never existed. The transaction was processed via a bank account linked to a law firm appointed by Aspen Broadway. The alleged offence took place at a condominium in Jalan Tun Ismail on November 9, 2020. Dinesh was charged under Section 420 of the Penal Code, which carries a maximum penalty of 10 years' jail, whipping, or a fine if convicted. Sessions Court Judge Azrul Darus granted Dinesh bail at RM100,000 with one surety. He must surrender his passport and report monthly to the police. The next mention is set for July 28. Deputy Public Prosecutor Chow Siang Kong led the prosecution, while lawyer Mohd Akmal Mohd Taufik represented Dinesh. Earlier this year, Aspen Broadway's director, R. Gopinatan Pillai, faced similar fraud and money laundering charges. - Bernama
New Straits Times
08-07-2025
- New Straits Times
Assistant to company director charged with cheating over RM5.1 million glove deal
KUALA LUMPUR: An assistant to a company director claimed trial at the Sessions Court today (July 7) to a charge of cheating a businesswoman out of RM5.1 million from purported sales of non-existent nitrile examination gloves five years ago. P. Dinesh, 36, entered his plea after the charge was read out to him before judge Azrul Darus. He was accused of committing the offence with company director R. Gopinathan Pillai, who had been charged at another Sessions Court in February. The victim, who owns Atlas Holdings, was allegedly deceived by Dinesh into believing that 150,000 boxes of Coats Nitrile Examination Gloves under the Hartalega brand were stored at the Hartalega Sdn Bhd warehouse, ready for sale and delivery by Gopinathan's company, Aspen Broadway. However, the gloves did not exist, and he allegedly induced the victim to transfer RM5.1 million through a law firm to a bank account of another law firm appointed by Aspen Broadway — a transaction the victim would not have made had he known he was being deceived. The offence allegedly occurred at about 11am at a condominium in Jalan Tun Ismail on Nov 9, 2020. The offence under Section 420 of the Penal Code read with Section 34 carries a jail term of not less than one year and not exceeding 10 years, whipping and a fine upon conviction. Deputy public prosecutor Chow Siang Kong proposed a RM500,000 bail with two sureties bail. He also applied for the accused to surrender his passport to the court and report to the police station monthly as additional conditions. However, lawyer Mohd Akmal Mohd Taufik argued for a lower bail, describing the prosecution's suggested sum as excessive and punitive. He said his client, who earns RM1,500 as a salesman, was supporting his wife, a school-going child and a sickly mother. "My client has been cooperative throughout the investigation. He has also promised to attend all court proceedings," he said. The judge granted bail at RM100,000 with one surety and allowed the additional conditions. July 28 was set for document submission. In February this year, Gopinathan, a company director, claimed trial to one charge of cheating and seven counts of money laundering involving RM5.1 million in connection with the purported sale of non-existent nitrile examination gloves five years ago. The 60-year-old was granted a RM280,000 bail with two sureties.
