KUALA LUMPUR: CIMB Equities Research is maintaining its Outperform call on Top Glove, along with its target price of RM16.99, pegged to a 10% premium over its target market P/E of 15 times.
It said on Thursday, March 11 factors that could extend the re-rating of the stock include another potential round of strong results, the continuing uptick in glove demand and Top Glove's upcoming capacity expansion. The report was issued ahead of Top Glove's release of its 2QFY8/10 results on March 17.
“Given the full utilisation of its latest factory and potential higher contribution from its Mediflex subsidiary, we believe that Top Glove could report 2Q earnings that are almost double the year-ago level and at least 5% higher than 1QFY10's earnings,” it said.
Annualised 1H net profit is expected to exceed CIMB Research’s estimate of RM260 million as it expects stronger earnings in the remaining quarters given the additional capacity coming in during 2H.
Factors that could extend the re-rating of the stock include another potential round of strong results, the continuing uptick in glove demand and Top Glove's upcoming capacity expansion, it said.
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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