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Hot Stock Top Glove top decliner, falls 4%
by Cals Mon 10 Jun 2013, 16:38
Hot Stock Top Glove top decliner, falls 4%
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Monday, 10 June 2013 16:00
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KUALA LUMPUR (June 10): Top Glove Corp Bhd fell as much as 4% to become the bourse's top decliner. The decline came ahead of the rubber glove manufacturer's announcement of its third quarter results this Thursday.
Analysts said the export-based company's financials for the third quarter ended May 31, 2013 (3QFY13) might have seen a negative impact from a stronger ringgit versus the US dollar.
At 3.29pm today, Top Glove was traded at RM6.36 with some 185,000 shares done. The stock had earlier fallen as much as 26 sen to RM6.32.
During 2QFY13, the firm's net profit fell to RM50.32 million from RM53.46 million a year earlier.
In a note today, TA Securities Holdings Bhd said the ringgit which strengthened to RM2.96 recently, could "have a slight negative impact on (Top Glove's) revenue in the coming quarter (3QFY13)".
"In response to fluctuations in currency, Top Glove passes on cost increases to customers when the USD weakens sharply. They also employ hedging techniques such as the usage of forward contracts to secure their FX position.
"Nevertheless, currency fluctuations will still have an impact on results, as time lags of approximately one month applies," TA said.
TA which maintained its earnings forecast for Top Glove, has also retained its target price of RM7.10 and "buy" call for the latter.
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Monday, 10 June 2013 16:00
A + / A - / Reset
KUALA LUMPUR (June 10): Top Glove Corp Bhd fell as much as 4% to become the bourse's top decliner. The decline came ahead of the rubber glove manufacturer's announcement of its third quarter results this Thursday.
Analysts said the export-based company's financials for the third quarter ended May 31, 2013 (3QFY13) might have seen a negative impact from a stronger ringgit versus the US dollar.
At 3.29pm today, Top Glove was traded at RM6.36 with some 185,000 shares done. The stock had earlier fallen as much as 26 sen to RM6.32.
During 2QFY13, the firm's net profit fell to RM50.32 million from RM53.46 million a year earlier.
In a note today, TA Securities Holdings Bhd said the ringgit which strengthened to RM2.96 recently, could "have a slight negative impact on (Top Glove's) revenue in the coming quarter (3QFY13)".
"In response to fluctuations in currency, Top Glove passes on cost increases to customers when the USD weakens sharply. They also employ hedging techniques such as the usage of forward contracts to secure their FX position.
"Nevertheless, currency fluctuations will still have an impact on results, as time lags of approximately one month applies," TA said.
TA which maintained its earnings forecast for Top Glove, has also retained its target price of RM7.10 and "buy" call for the latter.
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