The glove maker rose as much as 4.5% or three sen to 70 sen today, adding to the 16% surge yesterday after it posted its financial results via a bourse filing.
At the time of writing, the stock had eased to 68 sen, a half sen or 0.75% gain, giving it a market capitalisation of RM5.59 billion. It was the fourth most actively traded stock with 113 million shares changing hands.
Despite the rebound over the past two days, its share price is still down 47% year-to-date.
Top Glove recorded a net profit of RM38.56 million in the fourth quarter ended Aug 31 (Q4 FY2025) from a net loss of RM6.64 million a year ago.
For the full-year, net profit rose to RM109.07 million from a net loss of RM64.88 million the previous year while revenue jumped 39% to RM3.49 billion.
The company declared a final dividend of 0.48 sen per share for FY2025, amounting to RM38.5 million.
The improved performance was primarily attributed to stronger glove demand, which continued to gain momentum throughout FY2025.
“Enhanced cost management also enabled more competitive pricing, lifting sales volume, which in turn boosted the utilisation rate to approximately 75% of running capacity in August 2025. Raw material prices were on the decline quarter-on-quarter,” the company said in a statement.
Research houses are now more bullish on Top Glove following its turnaround, lifting their target price and earnings forecast.
RHB Research said the results came in ahead of its expectations though it missed consensus.
“While the stock rallied 16% post results, we believe valuations are fair following our earnings reassessment.
“While we expect industry headwinds to persist into 2026 amid intensified competition, we acknowledge Top Glove’s improving cost structure and operating leverage, which should support a gradual earnings recovery,” it said in a note today.
It lifted its FY2026-2027 earnings forecast to RM160 million and RM192 million, from RM32 million and RM70 million previously.
RHB upgraded its recommendation to “hold” from “sell” with a target price (TP) of 61 sen from 54 sen previously.
Meanwhile, Phillip Capital maintained its “hold” call with a higher TP of 67 sen while TA Research kept its “sell” recommendation with a TP of 59 sen.