Malaysia Rubber-Product Sector Faces Persistent Headwinds -- Market Talk

Dow Jones
09/18

0238 GMT - Malaysia's rubber-product sector may remain under pressure, with June production hit by a 10-day natural gas supply disruption and global shipping delays, RHB analyst Eddy Do and team say in a note. July exports rebounded 64% on month, but mostly to non-U.S. markets with lower prices, they note. Competition is set to intensify as new Chinese plants in Indonesia and Vietnam add expected annual capacity of 10 billion pieces, which poses a growing threat to domestic export share in the U.S. market, they add. Despite attractive valuation at 0.76X 12-month forward price-to-book value, the sector faces structural challenges, leading RHB to maintain an underweight sector rating. Riverstone Holdings remains RHB's sole top pick for the sector. (yingxian.wong@wsj.com)

 

(END) Dow Jones Newswires

September 17, 2025 22:38 ET (02:38 GMT)

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