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Stock Focus Top Glove falls 1.9% on weaker 1Q results
by Cals Thu 19 Dec 2013, 01:31
Stock Focus Top Glove falls 1.9% on weaker 1Q results
Business & Markets 2013
Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com
Wednesday, 18 December 2013 15:57
KUALA LUMPUR (Dec 18): Top Glove Corp Bhd fell as much as 1.9% after releasing weaker first quarter results.
At 3.23 pm, Top Glove was traded at RM5.70, down 10 sen with some 280,000 shares done. It had earlier declined as much as 11 sen to RM5.69 and was one of the top decliners on the bourse.
Top Glove shares have gained 1% so far this year, underperforming the KLCI's 9% rise, Bloomberg data show.
Yesterday, the rubber glove manufacturer reported a net profit of RM50.28 million in the first quarter ended November 30, 2013 (1QFY14), a 13% fall from RM57.49 million a year earlier.
Revenue was also lower at RM573.99 million from RM584.58 million.
Despite the top and bottom line decline, analysts said Top Glove's results were within expectations.
They have also maintained their ratings on Top Glove shares.
In a note, JF Apex said it has maintained its “hold” rating on Top Glove with a target price (TP) of RM6.14.
According to JF Apex, after stripping off Top Glove's foreign exchange (forex) losses, the latter recorded a core net profit of RM57 million.
This is a 25.8% year-on-year growth. JF Apex said the core figure was in line with Top Glove's sales volume growth.
“1QFY14 figures were distorted by forex loss amounting to RM6.7 million while the 1QFY13 net earnings was aided by forex gain of RM12.2 million,” said the research house.
For comparison, Hong Leong Investment Bank Bhd (HLIB) also maintained its “hold” rating on Top Glove with a TP of RM6.09.
HLIB said Top Glove's results are largely in line as more production lines will commence in the coming quarters. This will be supported by sustainable demand for gloves.
“With the completion of Factory 25, Top Glove expects to bolster its nitrile glove quality and production capacity, in line with growing demand,” said the research house.
HLIB said the expansion of Factory 27 in Lukut, Negeri Sembilan will also boost Top Glove's output.
Business & Markets 2013
Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com
Wednesday, 18 December 2013 15:57
KUALA LUMPUR (Dec 18): Top Glove Corp Bhd fell as much as 1.9% after releasing weaker first quarter results.
At 3.23 pm, Top Glove was traded at RM5.70, down 10 sen with some 280,000 shares done. It had earlier declined as much as 11 sen to RM5.69 and was one of the top decliners on the bourse.
Top Glove shares have gained 1% so far this year, underperforming the KLCI's 9% rise, Bloomberg data show.
Yesterday, the rubber glove manufacturer reported a net profit of RM50.28 million in the first quarter ended November 30, 2013 (1QFY14), a 13% fall from RM57.49 million a year earlier.
Revenue was also lower at RM573.99 million from RM584.58 million.
Despite the top and bottom line decline, analysts said Top Glove's results were within expectations.
They have also maintained their ratings on Top Glove shares.
In a note, JF Apex said it has maintained its “hold” rating on Top Glove with a target price (TP) of RM6.14.
According to JF Apex, after stripping off Top Glove's foreign exchange (forex) losses, the latter recorded a core net profit of RM57 million.
This is a 25.8% year-on-year growth. JF Apex said the core figure was in line with Top Glove's sales volume growth.
“1QFY14 figures were distorted by forex loss amounting to RM6.7 million while the 1QFY13 net earnings was aided by forex gain of RM12.2 million,” said the research house.
For comparison, Hong Leong Investment Bank Bhd (HLIB) also maintained its “hold” rating on Top Glove with a TP of RM6.09.
HLIB said Top Glove's results are largely in line as more production lines will commence in the coming quarters. This will be supported by sustainable demand for gloves.
“With the completion of Factory 25, Top Glove expects to bolster its nitrile glove quality and production capacity, in line with growing demand,” said the research house.
HLIB said the expansion of Factory 27 in Lukut, Negeri Sembilan will also boost Top Glove's output.
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