PETALING JAYA: BIMB Securities Research remains “neutral” on the rubber glove sector despite expecting earnings recovery to be firmly underway now.

It explained that a broad valuation re-rating remains unlikely due to persistent industry oversupply and intense competition from China.

The brokerage said the Malaysian glove industry is entering the second half of 2026 in its strongest position since the post-pandemic downturn, supported by improving utilisation rates, stabilising average selling prices (ASPs) and widening tariff differentials between the United States and China.