Top Glove (TPGC.KL): 3Q26: A Great Quarter on ASP Boost, but Moderation Likely from Here

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Top Glove (TPGC.KL): 3Q26: A Great Quarter on ASP Boost, but Moderation Likely from Here

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18 Jun 2026 11:20:33 ET │ 12 pages

Top Glove (TPGC.KL)

3Q26: A Great Quarter on ASP Boost, but Moderation Likely from Here

CITI’S TAKE

Stripping out one-offs (PPE impairment, write-off, loss on disposal), Top

Buy Glove reported a great 3Q26 (May quarter) with core PATMI of RM118.7mn

Price (18 Jun 26 17:00) RM0.72 (10x YoY, almost 4x QoQ); 9M26 core PATMI was RM187.4mn (>4x YoY),

104%/108% of Citi/cons despite with another quarter left. Sequentially, Target price RM0.90↑

despite a flattish volume (+1% QoQ), a higher US$ ASP (+17% QoQ) from RM0.82

significantly boosted revenue/profitability amid a favourable timing Expected share price return 25.0%

mismatch vs feedstock price increase. As such, the majority of Expected dividend yield 1.9%

incremental revenue from ASP effectively flowed straight to the bottom Expected total return 26.9%

line. The outlook, however, is more mixed; ASPs are now trending lower in-

Market Cap RM5,917M tandem with feedstock; June NBR latex ASP now hovers at US$24 vs

US$1,454M US$27 in May, with further moderation likely. This points to a sequential

margin moderation, with several cost line items (e.g. natural gas) expected

to grind higher later into 2HCY26. Our new TP is RM0.90 (+10%); maintain

Buy. Megat Fais, CFAAC

+60-3-2383-2940

Muted sequential volume growth, profitability significantly boosted by ASP — megat.fais@citi.com

3Q26 volume strong YoY (+41%), but flattish QoQ (+1%). YoY growth was broad

based, with Asia (+64% YoY) and Western/Eastern Europe (+58%/+45% YoY)

standing out. The flattish QoQ momentum was softer than guided amid rising ASPs;

NBR glove segment in particular, saw a 5% QoQ volume decline, mitigated by the NR

segment.