Company Name: TOP GLOVE CORPORATION BHD
Research House: AMMB
KUALA LUMPUR: Shares of Top Glove Corp Bhd fell in afternoon trade on Friday, June 10 on concerns about weaker earnings when it releases it third-quarter results next week.
At 3.04pm, it was down 11 sen to RM5.29 with 1.04 million shares done.
The FBM KLCI was up 6.75 points to 1,557.64. Turnover was 495.26 million shares valued at RM723.16 million. Advancing counters beat decliners 333 to 284 while 320 stocks were unchanged.
At the midday break, the company announced it would release the''third quarter financial results for the period ended''May 31, on June 17.
AmResearch said in recent report it was maintaining its Sell rating on the glove maker and cut its fair value from RM4.30 share to RM3.90, based on a price-to-earnings of 15 times CY12F earnings ' at parity to the stock's 10-year mean.
'We are again slashing our FY11F-13F earnings forecasts, by 13%-14% this time around. This represents our third earnings downgrade in the past nine months, underpinning our view that earnings have yet to hit the trough,' it said.
AmResearch said it anticipated Top Glove's 3Q results would again undershoot market expectations.