The anticipated normalisation of earnings for the rubber products sector has begun as the supernormal earnings are in their final legs, says RHB Group Research analysts.
In a Sept 28 note, analyst Sean Chew maintains “neutral” on the rubber products sector, with a “neutral” recommendation on six out of the eight regional stocks covered as the expectation of average selling price (ASP) moderation has been largely priced in.
The selling prices of rubber gloves have fallen from the highs, with current ASPs of nitrile and latex gloves ranging between US$40 to US$45 and US$30 to US$35 respectively per 1,000 pieces.
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