Shandong Intco Medical Products Co Ltd

INTCO Medical, a leading global manufacturer of disposable gloves, reported revenue of RMB 6.91 billion for the first half of 2026, up 40.61% year over year, with net profit attributable to shareholders rising 17.86% to RMB 837.3 million. Adjusted net profit, excluding nonrecurring gains, surged 165.00% to RMB 1.06 billion. By the end of the period, the company's annualized production capacity for disposable gloves reached 107 billion pieces, comprising 74 billion nitrile gloves and 33 billion vinyl gloves, reinforcing its position as the world's largest producer. The company highlighted its integrated value chain, including controlling interests in nitrile latex manufacturers, to secure raw materials and mitigate crude oil price fluctuations. R&D expenses increased 20.62% to RMB 245.9 million, supporting new products like Syntex™ Synthetic Latex Gloves and Synmax Pro Exam Gloves, while smart manufacturing maintained a product yield above 99%.

Tiantong Corporation plans to invest 434 million yuan through a wholly-owned subsidiary to build an intelligent manufacturing project with an annual output of 14,600 tonnes of high-end soft magnetic new materials, with a construction period of about 36 months. Zhonghong Medical's net profit attributable to the parent company in the first half of the year surged 2662.38% year-on-year to 159 million yuan. In addition, several companies released half-year reports, with Hangzhou Cable, Yahua Group, and Yongtai Technology all posting substantial net profit growth. Jingsheng Co.'s self-developed large-size CVD SiC chemical vapour deposition coating complete equipment has passed factory inspection and been delivered to customers. Sino Medical's H-share issuance is being filed with the China Securities Regulatory Commission and is expected to be completed in the first quarter of next year; its HT Supreme drug-eluting stent system has been approved in Paraguay. Institutional seats made net purchases of 656 million yuan in Hengtong Optic-Electric and 168 million yuan in Yangtze Optical Fibre and Cable. Wanxun Automation has made progress in its domestic and overseas semiconductor business layout, and Shandong Haode and Anhui Kaize, controlled by Intco Medical, delivered excellent second-quarter profits.

Intco Medical stated during its semi-annual report conference call that customers currently show a strong willingness to place orders. In the second quarter, affected by the situation in the Middle East and fluctuations in crude oil prices, the price of disposable gloves rose significantly. Coupled with rising international shipping costs, customers slowed down procurement and consumed inventory, resulting in customer inventories currently being almost all at low levels, with obvious restocking demand. After August, the peak purchasing season for customers will begin and is expected to last until around Christmas.

Intco Medical disclosed its 2026 semi-annual report. In the first half of the year, it achieved operating revenue of 6.909 billion yuan, up 40.61% year on year. Net profit attributable to shareholders of the listed company was 837 million yuan, up 17.86% year on year. Basic earnings per share were 1.31 yuan. The company also plans to distribute a cash dividend of 1.0 yuan per 10 shares before tax. Since the second quarter, international oil prices have fluctuated upward, compounded by the impact of the Middle East situation. Prices of upstream raw materials such as nitrile latex have risen sharply, significantly lifting industry costs. However, benefiting from improved supply-demand dynamics and cost-side support, selling prices of disposable gloves orders have risen in tandem, and the industry's profit margin has continued to widen. The overall picture shows both volume and price rising, with thicker profits. As of the end of the reporting period, the company's annualized production capacity for disposable non-latex gloves reached 107 billion gloves, including annualized capacity of 74 billion for disposable nitrile gloves and 33 billion for disposable PVC gloves.

On July 29, shares of disposable glove producers Zhonghong Medical, Intco Medical, and Blue Sail Medical rose across the board, with Zhonghong Medical hitting its daily limit up. The previous evening, Zhonghong Medical issued a profit forecast, estimating net profit attributable to shareholders of the listed company at 140 million to 210 million yuan for the first half of this year, a year-on-year increase of 23.38 to 35.57 times, mainly driven by higher selling prices for health protection gloves, improved product gross margins, and stronger cost control. Blue Sail Medical had earlier forecast first-half net profit of approximately 90 million to 110 million yuan, swinging from a loss to a profit year-on-year, with its health protection division achieving net profit of 250 million to 300 million yuan and operating revenue up about 36 percent year-on-year. This year, rising international oil prices have pushed up raw material costs for nitrile gloves, but Chinese manufacturers, with their complete petrochemical supply chains, have achieved raw material self-sufficiency and a significant cost advantage, allowing them to capture excess profits during the industry's price hike cycle.