(Kuala Lumpur, 15th news) Despite the rising demand and the tariff policies of figures like Trump, which are expected to boost Malaysia's glove sector, analysts indicate that the positive outlook has already been factored into the stock prices, leading to a downgrade in glove stock rating to 'Neutral.'
An analyst at Funglun Investment Bank pointed out that in fact, in a market strategy report dated December 17 last year, the glove rating was already downgraded to 'Neutral,' mainly due to the sector's strong stock performance since mid-September.
Analysts mentioned that although they remain optimistic about the operational status of glove manufacturers, the recovery sentiment for 2025 has long been factored into current stock prices.
In terms of company coverage, analysts have given a "Buy" rating on Kossan Industries (KOSSAN, 7153, Main Board Healthcare Stocks), mainly driven by the upward revision of the price-to-earnings ratio.
Analysts point out that by 2025, there are several key milestones to pay attention to, but the pros and cons have both been somewhat diminished.
In this, the global glove market will achieve supply-demand balance, mainly due to customer return to fill inventory, and regional participants will not make significant moves in capacity expansion.
Furthermore, there are issues regarding the quality of gloves in China, as well as the gradual increase in U.S. tariffs over the next two years. However, analysts still maintain their earlier view that the journey of volume and average selling price recovery is not average.
Furthermore, whether the 'China +1' strategy will bring about the issue of oversupply, analysts say it is too early to consider because there are still many uncertainties, as well as...