gloves

UOB Kay Hian is reiterating its “overweight” stance on the glove sector as the demand for the personal protective gear remains high.

“With its own branded gloves and distribution network, UG Healthcare should be able to monetize a larger share of supply-chain profits, starting from manufacturing to distribution,” says PhillipCapital's head of research Paul Chew.

We understand why brokers continue to promote glove maker stocks — they are big, liquid companies that can generate substantial business volumes. Will their share prices go higher? Probably.

“UG Healthcare remains our preferred pick among the Singapore-listed rubber glove sector, due to its undemanding valuation (a c.60% discount to the Malaysia-listed glove sector average CY21F P/E of 29.3x),” he says in a July 8 note. Specifically, h

“The glove companies’ earnings will be further boosted by expanded margins as raw material prices remain low, selling prices continue to grow, USD continues to strengthen over the RM and expansion plans remain intact for the glove producers,” AmBank says.

SINGAPORE (June 25): As the novel coronavirus (Covid-19) pandemic continues to infect and claim lives, there is no danger of an oversupply of gloves just yet.

Scoop up Top Glove, Riverstone and UG Healthcare - analysts say.

“We continue to like Riverstone for its attractive valuations (33% discount to Malaysia-listed glove sector average CY21F P/E of 24.7x),” says CGS-CIMB analyst Ong Khang Chuen

Top Glove has emerged among the top performers on both the Kuala Lumpur Composite Index (KLCI) and Straits Times Index (STI)

Earnings of Malaysia-based glove and face mask manufacturer Riverstone Holdings soared 54.3% to RM46.6 million ($15.2 million) in 1Q20, from RM30.2 million a year ago, reinforcing that protective health gear are now the hottest investment property.