Hot Stock Top Glove’s counter hits five-year high

by **Cals** Mon 20 Jul 2015, 17:48

Hot Stock
Top Glove’s counter hits five-year high

KUALA LUMPUR (July 20): The share price of Top Glove Corporation Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) reached a five-year high at RM7.90 today after gaining 4.64% or 35 sen.
As at 4:13pm, Top Glove (fundamental: 2.50; valuation: 1.10) pared some gains and was trading at RM7.74, up 19 sen or 2.52% , after some 2.66 million shares were traded.
Its current price gives it a market capitalisation of RM4.66 billion.
TA Securities analyst Paul Yap told theedgemarkets.com that the glove maker’s rise in share price has a lot to do with its good results in the last quarter.
“For the nine-month period of financial year 2015 (9MFY15), Top Glove announced a net profit of RM177.0 million (up 28.9% quarter-on-quarter, and up 31.9% year-on-year), which exceeded ours and consensus expectations at 83.6% and 83.4% respectively,” he said.
Paul added that the group’s performance was aided by a favourable exchange rate between US dollar and ringgit, as well as better than expected demand for gloves.
“Top Glove definitely benefited from the forex (foreign exchange) exposure,” he said in reference to the weakening of the ringgit.
JF Apex Securities analyst Jessica Low said the depreciating ringgit “further provides a catalyst for the company’s share price, which has a positive sentiment in the market”.
The research house maintains a buy call on Top Glove, with a target price of RM7.75.
Competitors such as SuperMax is trading at RM2.11, up 1 sen or 0.48%, while Hartalega is trading at RM8.56, down 4 sen or 0.47%.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)