Stock Name: TOPGLOV
Company Name: TOP GLOVE CORPORATION BHD
Maintain Sell. Top Glove's upcoming 2QFY12 core net profit is likely to overshoot our forecasts but be in line with consensus estimates. Despite our earnings upgrade (+9-11%), the stock is still trading at a pricey CY13 PER of 16x. We think rising latex costs, a weakening USD, minimum wage hikes and a high foreign shareholding of 35% will impinge on the stock's performance. Maintain Sell, but our TP is raised to RM4.20 (+24%) post our earnings upgrade and as we peg the stock at 14x CY13 PER (DCF previously).
Maybank Research 14 March 2012
Click here for full report
Company Name: TOP GLOVE CORPORATION BHD
| Research House: MAYBANK | Price Call: SELL | Target Price: 4.20 |
Maintain Sell. Top Glove's upcoming 2QFY12 core net profit is likely to overshoot our forecasts but be in line with consensus estimates. Despite our earnings upgrade (+9-11%), the stock is still trading at a pricey CY13 PER of 16x. We think rising latex costs, a weakening USD, minimum wage hikes and a high foreign shareholding of 35% will impinge on the stock's performance. Maintain Sell, but our TP is raised to RM4.20 (+24%) post our earnings upgrade and as we peg the stock at 14x CY13 PER (DCF previously).
Maybank Research 14 March 2012
Click here for full report
No comments:
Post a Comment