Top Glove

Re: Top Glove

Postby behappyalways » Wed Aug 12, 2020 12:54 pm

Top Glove Says Demand Very Strong During Pandemic
https://www.youtube.com/watch?v=PY2WwTAPqL4
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Re: Top Glove

Postby winston » Thu Aug 13, 2020 2:19 pm

vested

Top Glove could touch RM77.60 per share in bull scenario — Citi

by Ahmad Naqib Idris

KUALA LUMPUR (Aug 13): Top Glove Corp Bhd’s share price could reach RM77.60 in a bull scenario, according to Citi Research, as the group is poised to raise prices and capitalise on strong demand for gloves, given the group’s large manufacturing capacity.

In a note on Tuesday, the research house reiterated that Top Glove is “a clear winner” by virtue of it having the largest capacity, allowing the group to lead the pack in raising glove prices.

“Capacity-wise, the group also has the most near- to medium-term capacity coming to absorb pandemic-driven demand; our bull-case valuation of Top Glove is RM77.60,” said Citi, which has a target price (TP) of RM48.10 and "buy" rating for the glove manufacturer.

It said Top Glove’s inexpensive but effective products are benefiting from a surge in demand, putting it in a good position to absorb additional orders.

The demand-supply imbalance has enabled the group to aggressively raise its average selling prices (ASPs), which it said could drive “an unprecedented margin and earnings upcycle”.

On the other hand, the group’s share price could fall to RM16.50 in a bear scenario, with key risks including a sharper-than-expected decline in ASPs when Covid-19 de-escalates along with sharp volatility in raw material costs and the ringgit.

Oversupply is also a risk as industry players may decide to accelerate capacity roll-outs amid strong demand, followed by the entry of new players, said Citi.

Source: The Edge

https://www.theedgemarkets.com/article/ ... 80%94-citi
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Re: Top Glove

Postby winston » Sat Sep 12, 2020 8:36 pm

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Time to take off the gloves

Key points

FY21 peak earnings unlikely to repeat; tech boom 99/00 says walk away

We believe post results upgrades provides an excellent opportunity to lock in gains

FY20/21/22 earnings +8/121/138%; TP -47% to RM5.40; Downgrade to UP

While we maintain that long-run PER multiples should mimic those of the consumer staples at 40-50x, we believe investors should be ascribing these multiples on long-run earnings, rather than peak earnings.

At current levels, TOPG’s shares are trading at a lofty 70x FY23E PER.

Source: Macquarie
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Re: Top Glove

Postby winston » Sun Sep 13, 2020 8:39 am

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Much verbal sparring over glove makers

By M. Shanmugam

IN a space of just 15 days Macquarie Research, a well-respected research outfit, has done something quite unexpected. It drastically changed its outlook on Top Glove Corporation Bhd, sparking a huge debate.

The debate wasn’t just about the value of the major glove manufacturer’s stocks. The crux of the debate, in fact, was about the quality of research reports on the company and whether it is compromised by the interest of investment banks issuing structured warrants that are based on the stock.

Just recently, on Aug 24, Macquarie issued a report setting the 12-month target price for the Top Glove at RM30.40. Taking into account Top Glove’s two-for-one bonus issue that took effect on Sept 4, the target price should be adjusted down to just above RM10.

However, last Wednesday, Macquarie downgraded Top Glove to RM5.40, more than 45% of the adjusted price post the bonus issue. In just 15 days, Macquaries changed its call on the stock from an out-perform to an under-perform.

The rule of thumb is that when there are too many structured warrants being issued, the stock will see heavy price volatility.

Source: The Star

https://www.thestar.com.my/business/bus ... ove-makers
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Re: Top Glove

Postby winston » Mon Sep 14, 2020 8:57 am

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Top Glove (TOPG MK)
Share Price: MYR7.76
Target Price: MYR9.53
Recommendation: Buy

Many rabbits in the hat

For Nov 2020, Top Glove’s nitrile glove ASP would be 4.1x that of Feb 2020’s level and we understand that there is still another 30-50% upside.

Additionally, the ASP hike for latex powder free gloves has reaccelerated for Nov 2020 and there is still room to raise the ASP further.

We raise FY20/21/22E EPS by 6%/63%/224% on higher ASPs but retain our TP at MYR9.53 (ex-bonus) on a lower CY21E P/E target of 9x, about -1SD of 5Y mean (vs. 16x), on consideration for earnings to taper post CY21E. BUY.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... c406e6.pdf
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Re: Top Glove

Postby winston » Thu Sep 17, 2020 2:35 pm

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Six questions for Top Glove’s boss as he announces over RM1b quarterly net profit today

by Syahirah Syed Jaafar & Kathy Fong

Global demand for gloves is growing steadily at 10% to 12% per annum driven by strong market fundamentals.


1. Vaccine, a curb on glove demand?
2. Stockpile on gloves
3. New entrants, a cause of oversupply
4. Will US Customs detention order be revoked by year-end?
5. Migrant workers issues
6. Share buyback scheme


Source: The Edge

https://www.theedgemarkets.com/node/532025
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Re: Top Glove

Postby winston » Thu Sep 17, 2020 3:43 pm

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Re: Top Glove

Postby winston » Thu Sep 17, 2020 3:54 pm

Top Glove ends FY20 with RM1.29b net profit, strongest-ever set of results

by Justin Lim

Most robust was demand for nitrile gloves which grew by 31% year-on-year, while natural rubber examination gloves also saw growth of 7% versus the corresponding period in FY19.

Factory F41, which is the group’s first factory in Vietnam, is expected to come onstream in October 2020, the initial production capacity for which is approximately 2.4 billion pieces of gloves from its 10 production lines.

On the capex front, the group has earmarked RM8 billion for the next six years, from FY21 to FY26, which will increase an additional capacity of 100 billion pieces of gloves.


Source: The Edge

https://www.theedgemarkets.com/article/ ... ar-earlier
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Re: Top Glove

Postby winston » Fri Sep 18, 2020 9:16 am

Top Glove (TOPG MK)
4QFY20: Only A Sneak Preview To Upcoming Quarters


4QFY20 earnings soundly beat expectations amid higher ASPs and spot sales kicking in.

The CBP withhold order was well navigated with little impact.

Demand remains visible with lengthening delivery lead times and robust demand from COVID-19
contained countries.

Robust nitrile ASPs, expected narrowing price gap between latex ASPs and nitrile ASPs, and resolving of the CBP withhold order would well justify the surge in valuations.

Maintain BUY and target price of RM12.30.

Source: UOBKH

https://research.uobkayhian.com/content ... 925532138b
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Re: Top Glove

Postby winston » Fri Sep 18, 2020 9:18 am

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Supported by industry-wide
ASP hikes


Trading at 6x 12M forward P/E; maintain BUY

Strong 4QFY20 results were above expectations on higher-than-expected ASPs.

Earnings could still be stronger ahead on our estimated ASP hikes of 48%/40% QoQ in 1Q/2QFY21E.

Maintain our FY21-22E EPS forecasts and introduce FY23E, which assumed for demand-supply to balance.

Maintain BUY and TP of MYR9.53 (9x CY21E P/E; -1SD of 5Y mean).

Stock trades at undemanding 12M fwd P/E of 6x and offers DY of 9% in FY21E.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 3d80eb.pdf
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