CIMB Research: Efficient glove makers to benefit from minimum wage policy
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CIMB Research: Efficient glove makers to benefit from minimum wage policy
KUALA LUMPUR: CIMB Equities Research said the expected implementation of a minimum wage policy by end-April would reduce its core earnings per share forecasts by 2.0%-8.9% assuming a floor monthly wage of RM1,000.
It said on Thursday this would be an opportunity for efficient glove makers to gain share when smaller competitors fail.
However, its earnings estimates and target prices are unchanged as details are unknown.
“Key variables include the wage level, treatment of foreign workers, classification of ex-gratia payments and timeline. We remain Neutral on the sector, with Hartalega being our top pick and Top Glove our top sell,” said CIMB Research.
It said on Thursday this would be an opportunity for efficient glove makers to gain share when smaller competitors fail.
However, its earnings estimates and target prices are unchanged as details are unknown.
“Key variables include the wage level, treatment of foreign workers, classification of ex-gratia payments and timeline. We remain Neutral on the sector, with Hartalega being our top pick and Top Glove our top sell,” said CIMB Research.
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