GLOVE
[%mBZH%] [%YaRX%] [%IgOV%] [%auce%] 
Research by Kenanga
Underweight

“1QCY24 Report Card: Weak Earnings Undertone”

We reiterate our UNDERWEIGHT rating on the sector. Players either were in the red or reported tepid profits in 1QCY24, with only one meeting our expectation. The weak earnings undertone in 1QCY24 suggests the operating environment remains challenging, plagued by overcapacity, predatory pricing by certain overseas players, weak demand and the high cost of inputs. On a slightly brighter note, further decommissioning of older production facilities locally should help to ease supply pressure, at least bringing about more rational competition amongst local players.

Analyst(s):
Raymond Choo Ping Khoon 
[%VYEn%]

GLOVE
$KLSE-HARTA $KLSE-KOSSAN $KLSE-SUPERMX $KLSE-TOPGLOV 
Research by Kenanga
Underweight

“1QCY24 Report Card: Weak Earnings Undertone”

We reiterate our UNDERWEIGHT rating on the sector. Players either were in the red or reported tepid profits in 1QCY24, with only one meeting our expectation. The weak earnings undertone in 1QCY24 suggests the operating environment remains challenging, plagued by overcapacity, predatory pricing by certain overseas players, weak demand and the high cost of inputs. On a slightly brighter note, further decommissioning of older production facilities locally should help to ease supply pressure, at least bringing about more rational competition amongst local players.

Analyst(s):
Raymond Choo Ping Khoon 
pkchoo@kenanga.com.my

$SUPERMX / 7106 (SUPERMAX CORPORATION BERHAD)

$KOSSAN / 7153 (KOSSAN RUBBER INDUSTRIES BERHAD)

$TOPGLOV / 7113 (TOP GLOVE CORPORATION BHD)

$HARTA / 5168 (HARTALEGA HOLDINGS BERHAD)