Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
The Glove Industry: A Roller Coaster We've All Ridden
I've been watching this sector for years, and what a ride it's been.
Phase 1: The Demand Shock (2020–2021)
COVID hit. Gloves became gold. ASPs skyrocketed, plant utilisation hit 100%, and every player was printing money. Hartalega's FY21 net profit hit RM2.4b, FY22 RM2.6b. Dividends hit 50–57 sen. Everyone thought it would last forever.
Phase 2: The Supply Flood (2022–2023)
It didn't. Everyone expanded. China's Intco and Bluesail ramped up aggressively, dumping supply into the market. ASPs collapsed. Hartalega swung to a RM218m net loss in FY23. Top Glove bled for two years. The red ocean was brutal — overcapacity, price wars, and margin destruction.
Phase 3: The Slow Grind Back (2024–2026)
The survivors didn't sit still. Malaysian players — Top Glove, Hartalega, Kossan — went into overdrive on manpower, process, plant, and equipment optimisation. Automation, workforce consolidation, cost-per-unit reduction. They couldn't control ASPs, so they controlled what they could.
Then came the tailwinds:
· Raw material shortages (NBR supply tightness)
· Geopolitical instability (Middle East tensions → oil spike → cost pass-through)
· Improved pricing discipline among Chinese makers
· Gradual demand recovery
Phase 4: Where Are We Now? (2026–2027)
The industry is normalising — but not to the astronomical profits of 2021. To something more... decent. Hartalega's FY27 forecasts show ~RM70m net profit. Top Glove's FY27F ranges from RM218m to RM525m depending on who you ask (yes, the analyst spread is that wide).
This is the new reality: a fragile oligopoly, not a gold rush.
The Key Insight:
This industry will kill everyone in a pure red ocean. But if it consolidates into a rational oligopoly — where the top players compete on cost, not price — everyone survives. Not with 50% margins, but with decent, sustainable profits.
And then you wait.
Because the next huge demand surge — whether from a new health hazard, a pandemic, or a structural shift in global hygiene standards — will come. And when it does, the players who survived the downcycle, optimised their cost base, and kept their balance sheets clean will be the ones who ride it hardest.
The Lesson:
Cyclical industries are not about timing the top. They're about surviving the bottom. The companies that cut fat, invested in efficiency, and didn't blow up their balance sheets during the boom are the ones still standing.
Top Glove and Hartalega are still standing. That's not nothing.
---
Not investment advice. DYODD. I'm just sharing my observations from watching this sector go through its full cycle.
Three concrete actions management should prioritize, ranked by potential impact:
1. Execute the Fleet Renewal with Precision: The market doesn't reward potential; it rewards execution. The new 60T AHTS vessels, scheduled for delivery in 2028, need to be delivered on time and on budget. These modern, more fuel-efficient vessels could significantly improve operational margins and contract rates, directly boosting future earnings.
2. Demonstrate Consistent Profitability: Investors need proof that the company can make money in any market, not just during oil price spikes. A key metric to watch is the Return on Equity (ROE). A sustained improvement in ROE, driven by higher vessel utilization and better cost management, would give investors a reason to buy, making the stock's low P/B ratio (0.4x) truly attractive.
3. Establish a Clear Capital Return Policy: A dividend is often a more credible signal of confidence than a buyback . The recent share capital reduction has cleared the path for future distributions . If Perdana can start paying a consistent, sustainable dividend, it would attract a whole new class of income-focused investors.
Six professionals, same facts, wildly different conclusions. This isn't a bug — it's the market's way of saying "we don't know."
Buffett and Munger don't read analyst reports for a reason: they're often backward-looking, constrained by career risk and can't replace primary research.
This is what you to do instead:
• Read the actual 4QFY26 financials and concall transcript
• Ask yourself: "Do I believe the ASP spike is durable? Can they pass through costs? Will China compete harder?"
• Your answer — not the analysts' — should drive your decision
Consensus analyst expectations project Top Glove’s Profit After Tax (PAT) to land in the range of RM95 million to RM100 million. If above will create momentary interest but if below will negate the interest for past few days. Let see how it unfolds. May the market forces be with everyone.
OS Capital Sdn Bhd is a licensed community credit provider and a wholly-owned subsidiary of OSK Holdings Berhad, a major Malaysian conglomerate.
🏢 About OS Capital
· Core Business: As a subsidiary of OSK Holdings, it specialises in providing non-bank financial solutions, such as financing and lending, to businesses and individuals.
· Key Personnel: The company recently posted a job opening for a "Manager, Debt Recovery & Remedial Management," indicating it operates with significant funds and credit resources.
🔗 Parent Company Context
· OSK Holdings: This is a diversified group with core businesses spanning Property, Financial Services, Industries, and Hospitality across Malaysia and Australia.
· Financial Strength: The Group manages total assets exceeding RM12 billion and shareholders' funds of RM8.8 billion, indicating strong financial backing for its subsidiaries.
In summary, the entry of OS Capital into FPI appears to be a strategic move by a larger Malaysian financial group. It is distinct from the other major shareholders like Formosa Prosonic Holdings or Denka Company (who are in the manufacturing sector).
INTCO Medical Technology Co., Ltd.
Global INTCO Global Health
Notice on Product Price Adjustment in INTCO Medical's Greater China Region
Dear Partners,
Greetings!
We sincerely thank you for your long-term trust in and support for INTCO Medical.
Affected by the sharp rise in global crude oil and bulk chemical prices, the overall cost of the industry has increased significantly. The core raw material for disposable nitrile gloves has soared and continues to show an upward trend. Our production costs have risen significantly, and the pressure on operating performance continues to increase. In the face of this situation, our company has made every effort to absorb cost pressures through internal controls. However, given the surge in core raw material costs, in order to ensure product quality, stabilize supply capacity, and maintain long-term stable cooperation, our company has decided after careful study:
Starting from September 9, 2026, based on differences in product specifications and gram weights, the prices of INTCO Medical's disposable nitrile gloves will increase by 15-40 RMB/carton. For specific matters, please consult with our business team, and we will answer your questions as soon as possible.
Once again, thank you for your understanding and strong support! INTCO Medical will, as always, adhere to quality and service, and work hand in hand with you to move forward steadily and develop together.
Wishing you prosperous business!
INTCO Medical Technology Co., Ltd.
September 8, 2026
The capital reduction is officially 100% complete.
The "Effective Date" has passed
· Date of completion: 14 August 2026 (the date it was lodged with the Registrar of Companies).
· The proposed reduction is now legally finalized and cannot be reversed.
The New Share Capital Structure
As stated in the announcement, the company's issued share capital is now reduced to RM282,286,743.36.
· Total ordinary shares: 2,227,909,141 (unchanged from before—your share count is the same).
· Total RCPS: 14,191,007 (down slightly from Q1 2026 as more RCPS converted).
· Important note: Since the share count didn't change, the share capital reduction was purely a book-keeping entry.
What happens to the Retained Earnings now?
· Before reduction (Q1 2026): Accumulated Losses of -RM205.6 million.
· Capital Reduction amount: The company wiped out RM600 million from the Share Capital account.
· New Retained Earnings: RM600m (wiped) – RM205.6m (previous losses) = approx. +RM394.4 million.
Perdana's balance sheet now officially has positive retained earnings for the first time in years.
What this means for you?
· Your shares: Exactly the same number. No dilution.
· No cash for you today: This is purely a balance sheet clean-up.
· The real payoff: Future dividends are now legally possible. Because they wiped out the negative retained earnings, Perdana can now pay dividends from future profits.
· Caveat: They can pay dividends, but they are still losing money operationally (Q1 2026 net loss of RM12.1M). Dividends won't happen until they return to consistent profitability.
Bottom line: The "financial engineering" is now fully done. The ball is now entirely on management to turn their operational cash flow into actual net profits with their new vessels.
