Top Glove - Back To Pre-COVID-19 Margins
TOP GLOVE CORPORATION BHD (SGX:BVA)
- Top Glove (SGX:BVA)'s 1QFY22 (Sep 2021 to Nov 2021) net profit of RM185m (-92.8% y-o-y) was short of expectations, due to lower-than-expected sales volume and sharper-than-expected dip in ASPs.
- We forecast weaker q-o-q performance in the coming quarters due to declining ASPs and lower sales volume (more balanced supply-demand dynamics).
- We cut our FY22-24F earnings per share forecast for Top Glove to account for a further decline in ASPs (US$27/US$26/US$26 from US$32/US$29/US$28 per 1k pieces previously).
- Downgrade Top Glove to REDUCE, with a lower target price of RM1.50 (19x CY23F P/E).
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
Walter AW CGS-CIMB Research | https://www.cgs-cimb.com 2021-12-13
SGX Stock
Analyst Report
0.49
DOWN
0.970
Read also CGS-CIMB's most recent report:
2022-09-20 Top Glove - Tough Times Remain Ahead
Target prices by 3 other brokers at Top Glove Target Prices.
Listing of broker reports at Top Glove Analyst Report.
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