Latest news with #LimCheongGuan
The Star
2 hours ago
- Business
- The Star
Top Glove expects more orders after tariffs clarity
Top Glove managing director Lim Cheong Guan. PETALING JAYA: Top Glove Corp Bhd is banking on clearer US tariff policies and improving plant utilisation rates to support its earnings recovery, even as average selling prices (ASPs) remain under pressure amid stiff market competition and volatility in raw material cost. Top Glove managing director Lim Cheong Guan said market uncertainties and increased competition led to a downward adjustment in ASPs for nitrile and natural rubber gloves by 5% and 3%, respectively, in the third quarter of financial year ended May 31, 2025 (3Q25). The price adjustments were made in response to declining raw material costs to enable cost past-through and maintain price competitiveness. 'The third quarter was marked by uncertainty and competition stemming from the tariff developments. On April 1 when the tariff was announced, it resulted in temporary order deferrals and cancellations by some US customers who had not anticipated the added cost. This negatively impacted sales volume in the month of April. 'However, following the tariff revision to 10%, strong order inflows from the United States resumed, driving a strong 24% quarter-on-quarter sales volume growth to the United States market. 'On the other hand, competition intensified in Europe as Chinese manufacturers facing restricted access to the United States market shifted their focus there,' he said in a virtual result briefing for 3Q25 yesterday. For 3Q25, Top Glove saw a 31% drop in net profit year-on-year (y-o-y) to RM34.7mil or earnings per share of 0.43 sen. Revenue on the other hand rose by 30% y-o-y to RM830.3mil. For the nine month period of financial year ended May 31, 2025 (9M25), the group's net profit was up y-o-y to RM70.5mil from a loss of RM58.2mil previously. The company recorded a 55% increase y-o-y in revenue for 9M25 to RM2.6bil. On a quarter-on-quarter basis, sales volume increased by 4% despite a 6% decline in revenue due to lower ASPs and a weaker US dollar. Cheong Guan added the slight decline in ASPs also reflects falling raw material costs where nitrile and natural rubber prices are expected to decline by close to 14%. He also anticipates more orders to flow in once there is more clarity of the tariff policy. 'During this period, we do share some of these cost savings with our customers as well. 'However, we also believe that once the tariff policies are finalised, our customers will be able to place orders with more certainty, without worrying that the tariff rate might go up to say 20%, which would result in higher import costs compared with 10% right now,' he said.
The Sun
10 hours ago
- Business
- The Sun
Top Glove optimistic on growing demand for gloves, additional sales from US
KUALA LUMPUR: Top Glove Corporation Bhd expects demand for gloves to grow with opportunities to capture additional sales from the United States when there is more clarity on issues surrounding US tariffs. It also said the tariff imposed by the US on China products is unlikely to be lower than Malaysia's. Managing director Lim Cheong Guan said the group's diverse portfolio is an advantage. It can offer a range to meet customers' preferences and pricing requirements while acknowledging competition in other regions. 'The final tariff decision by the US government will provide much-needed visibility for both manufacturers and customers,' he said in the group's virtual results briefing for the third quarter ended May 31, 2025 (Q3'25) today. 'Meanwhile, to mitigate the impact of US dollar volatility on profitability, we will maintain a consistent hedging policy on a month-to-month basis,' he said. Lim also said quarterly fluctuations in average selling prices (ASP) are to be expected, influenced by raw material cost volatility, among other issues. Nonetheless, market conditions are expected to stabilise over time, he said. Overall, Lim said the group has a positive outlook for the glove industry and is confident of delivering stronger results in the coming quarters. On the cost front, Lim said if raw material prices decline gradually, this would help ease some of the pressure from price competition. At the same time, improvement in utilisation – 65% in June – is expected to rise in the coming months. This will help to optimise cost and boost competitiveness in the challenging market environment. The 2% mandatory Employees' Provident Fund contribution for foreign workers would cost the group RM200,000 a month, he said. 'If you look at it in terms of average selling price, it will be 0.1% of the ASP,' said Lim. For Q3'25, Top Glove saw its net profit decline to RM34.75 million from RM50.67 million a year ago. Revenue was higher at RM830.25 million versus RM636.87 million in Q3'24, it said in a filing with Bursa Malaysia. Lim said the group's Q3'25 performance was impacted by pronounced headwinds, lower ASP, heightened competition, coupled with cost savings pass-through. For the nine months ended May 31, 2025 (9M25), Top Glove returned to the black with a net profit of RM70.5 million against a net loss of RM58.23 million a year ago. Revenue was RM2.59 billion against RM1.68 billion in the same period last year. In 9M25, sales revenue surged 55%, accompanied by a 65% increase in sales volume compared with 9M24. – Bernama
Malay Mail
12 hours ago
- Business
- Malay Mail
Top Glove sees room to grow in US market despite price pressures
KUALA LUMPUR, June 26 — Top Glove Corporation Bhd expects demand for gloves to grow with opportunities to capture additional sales from the United States (US) when there is more clarity on issues surrounding US tariffs. It also said the tariff imposed by the US on China products is unlikely to be lower than Malaysia's. Managing director Lim Cheong Guan said the group's diverse portfolio is an advantage. It can offer a range to meet customers' preferences and pricing requirements while acknowledging competition in other regions. 'The final tariff decision by the US government will provide much-needed visibility for both manufacturers and customers,' he said in the group's virtual results briefing for the third quarter ended May 31, 2025 (3Q FY2025) today. 'Meanwhile, to mitigate the impact of US dollar volatility on profitability, we will maintain a consistent hedging policy on a month-to-month basis,' he said. Lim also said quarterly fluctuations in average selling prices (ASPs) are to be expected, influenced by raw material cost volatility, among other issues. Nonetheless, market conditions are expected to stabilise over time, he said. Overall, Lim said the group has a positive outlook for the glove industry and is confident of delivering stronger results in the coming quarters. On the cost front, Lim said if raw material prices decline gradually, this would help ease some of the pressure from price competition. At the same time, improvement in utilisation — 65 per cent in June — is expected to rise in the coming months. This will help to optimise cost and boost competitiveness in the challenging market environment. The 2 per cent mandatory Employees' Provident Fund (EPF) contribution for foreign workers would cost the group RM200,000 a month, he said. 'If you look at it in terms of average selling price, it will be 0.1 per cent of the ASP,' said Lim. For the 3Q FY2025, Top Glove saw its net profit decline to RM34.75 million from RM50.67 million a year ago. Revenue was higher at RM830.25 million versus RM636.87 million in 3Q FY2024, it said in a filing with Bursa Malaysia. Lim said the group's 3Q FY2025 performance was impacted by pronounced headwinds, lower ASPs, heightened competition, coupled with cost savings pass-through. For the nine months ended May 31, 2025 (9MFY2025), Top Glove returned to the black with a net profit of RM70.50 million against a net loss of RM58.23 million a year ago. Revenue was RM2.59 billion against RM1.68 billion in the same period last year. In the same period, sales revenue surged 55 per cent, accompanied by a 65 per cent increase in sales volume compared with 9MFY2024. 'Our 9MFY2025 earnings before interest, taxes, depreciation, and amortisation have increased by a substantial 12 per cent from a year ago. It continues to track steadily towards pre-COVID levels, which is more reflective, as quarterly results can be more volatile due to the effects of headwinds and tailwinds. — Bernama
The Star
15 hours ago
- Business
- The Star
Top Glove's 3Q earnings slip amid headwinds
KUALA LUMPUR: A volatile market and uncertain trade environment chipped away at Top Glove Corp Bhd 's earnings in the third quarter ended May 31, 2025, despite a jump in revenue on a year-on-year comparison. "Our 3QFY2025 performance was impacted by pronounced headwinds, chiefly lower average selling prices, heightened competition, coupled with cost savings pass through. "However, it is encouraging that we have remained profitable while successfully delivering volume growth," said managing director Lim Cheong Guan in a statement announcing the glovemaker's quarterly result. According to the stock exchange filing, Top Glove posted a net profit of RM34.75mil, which was down from RM50.67mil in the year-ago quarter, attributed to increased competition and the weakening of the US$ against the ringgit. Top Glove had also registered a higher gain from land disposals in the year-ago quarter, which was absent in the current quarter. In line with the lower bottomline, earnings per share dipped to 0.43 sen from 0.63 sen previously. Revenue, however, rose to RM830.25mil from RM636.88mil, driven by a 45% increase in sales volume. For the cumulative nine-month period, the group's net profit was RM70.5mil, which compared favourably to a net loss of RM58.24mil in the year-ago period, while revenue rose to RM2.6bil from RM1.68bil in the comparative period. 'We believe the long-term outlook is still promising as gloves are an essential item across multiple sectors, which will drive sustained global demand. "We are also committed to delivering value to our stakeholders, while staying true to our principles of responsible and sustainable growth. These will enable us to navigate a volatile landscape while capitalising on emerging opportunities," said Lim.
New Straits Times
16 hours ago
- Business
- New Straits Times
Top Glove's Q3 earnings dip 31pct despite surge in sales volume and revenue
KUALA LUMPUR: Top Glove Corp Bhd's net profit for the third quarter ended May 31, 2025, dropped 31 per cent year-on-year to RM34.7 million, mainly due to heightened competition and the weakening of the US dollar against the ringgit. In a filing with Bursa Malaysia, the glove maker noted that the corresponding quarter a year earlier had also benefited from a higher gain from land disposals. Despite the lower earnings, quarterly revenue rose 30 per cent to RM830.3 million from RM636.9 million, driven by a 45 per cent increase in sales volume, reflecting continued global demand recovery. Earnings per share for the quarter stood at 0.43 sen, down from 0.63 sen a year ago. No dividend was declared for the quarter under review. Top Glove said the average selling price (ASP) of gloves remained competitive, while raw material costs trended lower quarter-on-quarter. The average natural latex concentrate price fell nine per cent, while nitrile latex was down four per cent. For the cumulative nine-month period, net profit surged to RM70.5 million from a net loss of RM58.2 million in the same period last year, buoyed by a 55 per cent jump in revenue to RM2.6 billion and a 65 per cent rise in sales volume. Managing director Lim Cheong Guan said the third-quarter performance was impacted by pronounced headwinds, chiefly lower ASPs, heightened competition and cost savings being passed through to customers. "However, it is encouraging that we have remained profitable while successfully delivering volume growth," he said in a statement. "Moreover, our cumulative nine-month performance continues to track steadily towards pre-Covid levels, which is more reflective as quarterly results can be more volatile due to the effects of headwinds and tailwinds. "These speak to the effectiveness of our continuous focus on quality improvement and cost efficiency, as well as our agility in responding to shifting market dynamics," he added. Top Glove ended the quarter with RM305.2 million in cash and bank balances, down from RM351.2 million at the start of the financial year. Total liabilities rose to RM1.65 billion from RM1.12 billion as at end-August 2024, mainly due to the issuance of an RM800 million senior sukuk to refinance its perpetual sukuk. Despite global uncertainties, Lim remained optimistic about long-term prospects. "We believe the long-term outlook is still promising as gloves are an essential item across multiple sectors, which will drive sustained global demand. "We are also committed to delivering value to our stakeholders, while staying true to our principles of responsible and sustainable growth," he said. Top Glove also highlighted its environmental, social and governance (ESG) recognition, having achieved a score of 4.1 out of 5 in the FTSE ESG Ratings, placing it among the top 10 per cent of over 700 companies assessed in the global healthcare segment.
