Top Glove

Top Glove

Postby winston » Mon Jun 20, 2011 9:57 am

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Valuation/Recommendation

• We reduce our target price from RM4.02 to RM3.78, based on 12x forward PE.

There could be more downside to our earnings estimates and target price as we have assumed latex prices to correct to RM7/kg for the year, vs the current RM9.40/kg.


Source: UOBKH
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Re: Top Glove

Postby winston » Wed Oct 12, 2011 1:55 pm

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Top Glove Corp (TOPG MK, Reduce)

In-line flat 4Q11; valuations not attractive ( MYR4.15 / PT: MYR3.42 )
Jacinda Loh; Raashi Gupta

In-line FY11 results

Top Glove’s FY11 earnings came in-line at RM113mn forming 98% of our and 95.5% of the street’s full-year estimates.

Its net earnings of RM26.1mn in 4Q11 were down 42% y-y, however they saw a slight improvement of 2% q-q due to stabilizing latex prices in 4Q.

Source: Nomura
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Re: Top Glove

Postby winston » Wed Jan 09, 2013 8:53 am

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CIMB Research keeps Top Glove as Neutral

KUALA LUMPUR: CIMB Equities Research is maintaining its Neutral outlook for Top Glove, as it believes strong demand for gloves is balanced by uncertainties of higher regulated costs (labour and energy) and volatile natural-rubber prices.

"Our target price (RM5.97) is unchanged, still based on 13.05 times forward P/E, its two-year average. We prefer Hartalega in the glove sector," it said on Wednesday.

CIMB Research said during Top Glove's Q1, 2013 analysts' briefing on Tuesday, the company shared that it was pushing ahead with plans to automate and computerise its manufacturing facilities.

By mid-2013, all its glove making plants should have the latest technology, attenuating higher labour costs.

"Investors should hold on to Top Glove but not build any more positions. The stock has the highest operating leverage in the sector, in our opinion, and is therefore the most susceptible to cost inflation (such as wages, energy, natural rubber)," said the research house.


Source: The Star
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Re: Top Glove

Postby winston » Wed Jun 18, 2014 8:25 am

Weaker 9M results

Top Glove’s 9MFY14 net profit came in below expectations, at 69.2% of our and 66% of consensus full-year forecasts.

9MFY14 revenue dropped 3.9% yoy due to lower selling prices while core net profit declined 4.6% due to poorer performance from China and a higher effective tax rate.

Given the lower than-expected results, we reduce our FY14-16 net profit forecasts by 5-8%.

This trims our target price, still based on 14.5x P/E (~20% discount to Hartalega).

We maintain Hold on Top Glove but prefer Kossan. Top Glove declared its first dividend for FY14, a single-tier DPS of 7 sen, in line with our forecast.

Source: CIMB
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Re: Top Glove

Postby winston » Thu Jun 19, 2014 6:14 pm

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MIDF reaffirms a ‘buy’ call on Top Glove

KUALA LUMPUR: MIDF Research has reaffirmed a “buy” call on Top Glove Holdings Bhd and fairly valued the glovemaker's share price at RM5.70, based on 5 per cent improved profits to RM42.2 million in its third quarter ended May 2014.

The research house's RM5.70 valuation is based on a multiple of 16 times Top Glove’s earnings per share of next financial year's estimate of 35.4 sen. This is equivalent to the rolling four-quarter historical price to earning ratio of the company.

The firm noted that Top Glove’s operations in China have narrowed its losses to RM1 million loss in its third quarter results ended May 2014 from a RM4 million loss posted in the second quarter. This improvement was attributable to the closure of the Zhangjiagang factory.

MIDF Research noted that Top Glove's RM20 million gain from the sale of this factory to new owners will be included in its last quarter earnings.

The firm has also reduced its estimates of Top Glove's revenue and earnings for the current year ending August 2014 as the average glove selling price is settling from lower raw material prices and increasing cutthroat competition, especially from nitrile glove players.

For its next financial year ending August 2015, MIDF Research expects the world's biggest glovemaker to rake in better profits because four more factories will come onstream to bump up its annual capacity to 47.4 billion pieces.

Source: NST
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Re: Top Glove

Postby winston » Thu Mar 19, 2015 5:20 am

Top Glove Q2 earnings up 33.3% to RM56m

KUALA LUMPUR: Top Glove Corporation Bhd’s earnings climbed 33.3% to RM56.07mil in the second quarter ended Feb 28, 2015 from RM41.55mil a year ago, boosted by strong demand, firmer US dollar and lower cost of materials.

The world’s biggest glove maker reported on Wednesday its pre-tax profit rose 17.8% to RM69.58mil from RM50.11mil. Its revenue increased by 4.3% to RM572.25mil from RM548.27mil. Earnings per share were 9.09 sen compared with 6.7 sen.

In the first half, its earnings rose 14% to RM104.75mil from RM91.83mil in the previous corresponding period. Its revenue increased by just 1.5% to RM1.139bil from RM1.122bil.

“Contributing to more robust revenue figures was growth in sales quantity of 5.3% vis-à-vis 2QFY14 and 4.5% against 1HFY14, attributable to higher sales volume stemming from more natural rubber and nitrile glove sales,” it said.

Top Glove said demand for natural rubber gloves from emerging markets, with exports to 200 countries worldwide, in particular continued to grow steadily.

“Also accounting for the improved performance were Top Glove’s on-going internal improvements in terms of quality, efficiency and cost control measures.

“Better margins arising from newer and more efficient glove machineries and factories, also served to bolster profitability. In addition, following a post-consolidation turnaround, its China operations delivered a positive contribution to total group profit.

“A stronger US dollar also positively impacted revenue and performance, and coupled with lower raw material prices, helped offset last year’s tariff increases, part of which Top Glove was unable to pass on to customers,” it said

Top Glove said raw material prices continued to trend downward compared with 2QFY14, with natural latex prices dropping by 24.8% to an average of RM3.63 a kg, and nitrile latex prices dropping by 5.3% to an average of US$1.03/kg.

Source: The Star
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Re: Top Glove

Postby winston » Thu Jan 07, 2016 6:35 am

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Top Glove eyes M&A by August

BY INTAN ZAINUL

Chairman Tan Sri Lim Wee Chai said that the company is already in talks with three parties in the rubber related industry for the planned acquisition.

"Merger and acquisition exercise would be part of our KPI for this year," he said at a media and analyst briefing on Wednesday.

The rubber glove manufacturer has RM366mil in net cash as at Nov 30, 2015.

"With our cash position we are looking at acquisition possibilities of at least RM100mil, and we are able to gear up to RM1bil," he said.

He highlighted that Top Glove is keen to acquire companies in the rubber gloves sector and could be extended to rubber-related industries.

"We prefer local companies because it would be easier to manage but we are open to any opportunities," Lim said.

He added that the company has also allocated about RM200mil in capital expenditure this year to expand its capacity.

The group currently has 25 glove factories located in Malaysia, Thailand and China with total capacity of 44.6 billion pieces of gloves annually.

Lim said Top Glove would be operating 27 glove factories with a total capacity of 52.4 billion pieces of gloves per year by February next year.

For the first quarter ended Nov 31, 2015, Top Glove posted a 163.6% surge in net profit to RM128.3mil from RM48.7mil a year ago, driven by a strong US dollar and efficiency improvements.

Revenue for the quarter rose 41%
to RM800mil from RM567.6mil previously due to higher sales volume for nitrile gloves.

Source: The Star
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Re: Top Glove

Postby winston » Thu Jan 07, 2016 6:35 am

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Top Glove eyes M&A by August

BY INTAN ZAINUL

Chairman Tan Sri Lim Wee Chai said that the company is already in talks with three parties in the rubber related industry for the planned acquisition.

"Merger and acquisition exercise would be part of our KPI for this year," he said at a media and analyst briefing on Wednesday.

The rubber glove manufacturer has RM366mil in net cash as at Nov 30, 2015.

"With our cash position we are looking at acquisition possibilities of at least RM100mil, and we are able to gear up to RM1bil," he said.

He highlighted that Top Glove is keen to acquire companies in the rubber gloves sector and could be extended to rubber-related industries.

"We prefer local companies because it would be easier to manage but we are open to any opportunities," Lim said.

He added that the company has also allocated about RM200mil in capital expenditure this year to expand its capacity.

The group currently has 25 glove factories located in Malaysia, Thailand and China with total capacity of 44.6 billion pieces of gloves annually.

Lim said Top Glove would be operating 27 glove factories with a total capacity of 52.4 billion pieces of gloves per year by February next year.

For the first quarter ended Nov 31, 2015, Top Glove posted a 163.6% surge in net profit to RM128.3mil from RM48.7mil a year ago, driven by a strong US dollar and efficiency improvements.

Revenue for the quarter rose 41%
to RM800mil from RM567.6mil previously due to higher sales volume for nitrile gloves.

Source: The Star
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Re: Top Glove

Postby winston » Sat May 07, 2016 6:39 am

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EPF picks up Top Glove shares

KUALA LUMPUR: The Employees Provident Fund (EPF) Board has been accumulating shares of Top Glove Corporation Bhd in recent days, increasing its shareholding to 5.26%, filings to Bursa Malaysia show.

The filings released on Friday showed the EPF emerged as a substantial shareholder after purchasing two million shares on April 28 which raised its stake to 5.10% or 63.96 million shares.

On April 29, it bought two million shares while on May 3, it purchased one million shares.

The recent purchases raised its direct shareholding in the glove maker to 5.26% or 65.96 million shares.

Source: The Star
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Re: Top Glove

Postby winston » Mon Jul 25, 2016 6:22 pm

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Rolling from the top

Given the less favourable US$/RM and more stable latex prices, the group’s earnings will no longer benefit from external tailwinds.

The group is most susceptible to intensified pricing pressures due to the multiplier effect from its larger capacity.

Current product mix and market segments are unfavourable in this environment.

Earnings peaked in 2015; projecting a 12.3% yoy earnings decline in FY17.

Maintain our non-consensus Reduce call and target price of RM4.05.

Source: CIMB

https://brokingrfs.cimb.com/3_3AvG8r2aC ... HUdPg2.pdf
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