Top Glove

[behappyalways]

Top Glove reports $16.3 mil loss in 4QFY2022 amid slowdown in orders, lower ASPs
https://www.theedgesingapore.com/capita ... lower-asps

[behappyalways]

Top Glove’s chairman says return to profit may take up to a year amid headwinds
https://www.businesstimes.com.sg/compan ... -headwinds

[behappyalways]

Top Glove plans to raise ASPs
https://www.thestar.com.my/business/bus ... raise-asps

[behappyalways]

Top Glove posts third quarterly loss as headwinds persist
https://www.theedgemarkets.com/node/659416

[winston]

not vested

Top Glove expects utilisation rate to stabilise in the next quarter

by Justin Lim

Top Glove’s factories’ average utilisation rate is running at 35% as at end-Feb this year, a slight improvement over the 30% utilisation rate posted in the previous quarter ended Nov 30, 2022 (1QFY2023) as sales volume increased by 6% quarter-on-quarter in 2QFY2023.

Conducted a cost-pass-through mechanism in February this year by increasing its glove's average selling prices as well as consolidating operations.

Electricity tariff which increases about 43%, effective Jan 1 this year.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/659492

[winston]

not vested

Average selling price of gloves returning to pre-pandemic level, says Top Glove

by Justin Lim

Malaysian glove manufacturers have increased the glove ASP to US$21 (RM94.58) per 1,000 pieces from US$17.

In comparison, Chinese glove players also revised their ASP to US$17, from US$14 previously.

Before [the Covid-19] pandemic, nitrile glove prices averaged about US$20 to US$22 [per 1,000 pieces]. The selling price is almost back to the pre-pandemic [level].

He anticipates that the price hike will continue for March to May delivery, with a monthly price increment of 5% to 10%.

“However, our costs have increased a lot, easily 20%.

Source: theedgemarkets.com

[winston]

not vested

Top Glove (TOPG MK)
2QFY23: Worst Is Over

Earnings disappointed as operational earnings fell into losses.

Off softened ASPs, input costs were generally higher.

Positively, ASPs across the industry are expected to pick up considerably in the subsequent quarter.

The bottoming of operating margins should elevate sentiment and downside risk.

With this and the gradual recovery in earnings beyond FY23, we believe the reward-to-risk is now favourable for Top Glove.

Upgrade to BUY with a higher target price of RM0.95.

Source: UOBKH

https://research.uobkayhian.com/content ... 5bf71247bb

[winston]

not vested

Top Glove Corporation
Worst is likely over on a quarterly basis

1HFY8/23 core net loss of RM316.8m was wider than expected, due to weaker-than-expected sales volume and further decline in ASPs.

We gather that ASPs likely bottomed in 2QFY23, with further ASP hikes on the cards. This is positive, indicating better supply-demand dynamics.

Upgrade to Hold from Reduce as we believe the worst is over. We raise our TP to RM0.82 (1.3x CY24F P/BV).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 04AF74324E

[winston]

not vested

Not out of the woods yet
Results below expectations

TOPG’s 2QFY23 core net loss of MYR177.9m (+8.6% QoQ; MYR87.5m net profit in 2QFY22) were below expectations.

Plant utilisation rate remained low at 32% no thanks to stiff competition especially from China.

Management intends to raise ASP by another USD1-2/k pcs.

We expect TOPG to report losses in FY23 and FY24 and will only turnaround in FY25.

We now value TOPG at MYR0.57 on 0.8x FY24E PBV (vs. MYR0.35, on 13x CY24E PER) with the change in valuation methodology due to anticipated losses in the medium-term.

Reiterate SELL.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/309146.pdf

[winston]

not vested

Top Glove (TPGC.KL) - 2QFY23 a Miss, More Constructive Tone on ASP

Top Glove reported a 2QFY23 (Feb '23 quarter) net loss after tax and MI of RM164.7mn (vs PATMI of RM87.5mn in 2QFY22, and broadly flat QoQ);

1HFY23 net loss at RM332.9mn, which tracks behind our previous/Street's full-year net loss
forecasts of RM271.4mn/RM212.3mn respectively.

Volume showed a +ve momentum sequentially (+6%) largely driven by the NBR segment, although overall 1H volume was still down sharply by 50% YoY and tracking behind.

ASP moderated to c.US$20-21/1'000, 4% lower QoQ (mainly NR driven) amid the ongoing
oversupply.

The Group has begun raising prices as flagged in our preview; we however expect the Group to remain loss-making throughout the rest of FY23E.

We cut our FY23E forecast further, with a slight upward revisions for FY24/25E.

Maintain Sell, with a slightly higher TP of RM0.69 (+8%).

Source: Citi