United States

Analyst Research Report Snapshot


Company Update – Top Glove (ADD, maintain) - Low-to-mid-teens growth with 4% yield




Affin Hwang Investment Bank Bhd


16 Oct 2012





Companies referenced:


Available for Immediate Download

Healthy 10-15% volume growth in FY13 Following Top Glove’s (TOPG) analyst briefing yesterday, we reaffirm our ADD recommendation and lifted up our TP to RM6.28 from RM6.20 previously, based on 16x CY13 EPS as we tweak up our FY13-15 sales growth assumption by 1-3% after nudging up demand growth for surgical gloves which typically fetch lucrative margins by 3-5%. This resulted in a 1-5% increase in FY13-15 core net profit. The group recorded its strongest sales ever of RM2.3bn in FY12, and management is confident of sustaining a healthy 10-15% sales growth in FY13. We think this target is achievable, due to the resilient demand for rubber gloves from the healthcare sector of both developed and emerging markets, in view of the growing health awareness coupled with more stringent healthcare regulations. To cater to the increased volume sales, TOPG’s production capacity expansion plan will be on track, targeting a 12% production increase to 44.8bn pieces a year. Notwithstanding the capacity ramp-up, plant utilization will be sustained at 75% in FY08/13.

Why buy analyst research?

  • Institutional quality research
  • Available for Immediate Download
  • Detailed company or industry insight
  • Print or save
  • 24 hour customer support
Return to previous page without adding this item to your cart.
Email Customer Support.

About Analyst Research

Analyst research reports are available for immediate download after purchase. You will have unlimited access to the report for 24 hours after purchase, to download, print or save it as many times as you wish. Analyst Research provided by Reuters does not constitute investment advice, and is not endorsed by Reuters Research. This information is protected by copyright and intellectual property laws. More information on Analyst Research.