We left the recent 5th International Rubber Glove Conference & Exhibition (IRCGE) feeling
positive about the sector. Despite considerable headwinds encountered by the sector this
year, demand for rubber gloves continues to grow at a healthy clip. With continued
technological advancement of glove products and facilities, we believe Malaysian rubber
glove manufacturers will maintain its leadership in the global market. In light of the positive
long term prospects of the industry, we maintain our OVERWEIGHT call. All the glove
stocks under our coverage remain as Outperforms. Potential re-rating catalysts include the
continuing uptick in demand from the healthcare industry, ongoing capacity expansion and
strong earnings growth. The recent sharp pullback in share prices has made the sector
even more attractive with undemanding average P/Es of 7-8x. Supermax and Latexx