Stock Name: TOPGLOV
Company Name: TOP GLOVE CORPORATION BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research said Top Glove Corp Bhd's 1H net profit exceeded its forecast by 4% and consensus by 9% and it expects an even stronger 2H given the additional capacity that is coming in.
"We are raising our FY10-12 forecasts by 8-13% after adjusting our capacity and utilisation figures as well as latex, average selling price and margin assumptions. This increases our target price from RM16.99 to RM17.90 which we continue to peg to a 10% premium over our target market P/E of 15x," it said on Thursday, March 18.
It reiterated its BUY call, with the earnings outperformance being a potential share price catalyst, along with the continuing uptick in glove demand and Top Glove's upcoming expansion.
Company Name: TOP GLOVE CORPORATION BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research said Top Glove Corp Bhd's 1H net profit exceeded its forecast by 4% and consensus by 9% and it expects an even stronger 2H given the additional capacity that is coming in.
"We are raising our FY10-12 forecasts by 8-13% after adjusting our capacity and utilisation figures as well as latex, average selling price and margin assumptions. This increases our target price from RM16.99 to RM17.90 which we continue to peg to a 10% premium over our target market P/E of 15x," it said on Thursday, March 18.
It reiterated its BUY call, with the earnings outperformance being a potential share price catalyst, along with the continuing uptick in glove demand and Top Glove's upcoming expansion.
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