Stock Name: TOPGLOV
Company Name: TOP GLOVE CORPORATION BHD
Results in line. 6MFY12 core net profit of RM85m (+37% YoY) was 53-54% of our and consensus' full-year forecasts. The earnings rebound has been priced-in given the 23% run-up in share price over the past 6 months. With the stock trading at its historical mean of 16x forward earnings, we see no compelling reason to upgrade, especially in view of the environment risks (rising latex cost, weaker USD, energy/ minimum wage hikes). Maintain Sell and RM4.20 TP (14x CY13 PER).
Maybank Research 16 March 2012
Click here for full report
Company Name: TOP GLOVE CORPORATION BHD
| Research House: MAYBANK | Price Call: SELL | Target Price: 4.20 |
Results in line. 6MFY12 core net profit of RM85m (+37% YoY) was 53-54% of our and consensus' full-year forecasts. The earnings rebound has been priced-in given the 23% run-up in share price over the past 6 months. With the stock trading at its historical mean of 16x forward earnings, we see no compelling reason to upgrade, especially in view of the environment risks (rising latex cost, weaker USD, energy/ minimum wage hikes). Maintain Sell and RM4.20 TP (14x CY13 PER).
Maybank Research 16 March 2012
Click here for full report
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