- Top Glove (SGX:BVA)’s 2QFY23 (Dec 2022 to Feb 2023) core net loss of MYR177.9m (+8.6% q-o-q; MYR87.5m net profit in 2QFY22) were below expectations. Plant utilisation rate remained low at 32% no thanks to stiff competition especially from China. Management intends to raise ASP by another US$1-2/k pcs.
- - Read this at SGinvestors.io -
- We now value Top Glove at MYR0.57 on 0.8x FY24E PBV (vs. MYR0.35, on 13x CY24E PER) with the change in valuation methodology due to anticipated losses in the medium-term. Reiterate SELL.
Losses deepens; hit by lower ASP and utilization rate
- Excluding MYR8.9m fair value gain from investment securities, Top Glove’s core net loss expanded to MYR342m in 1HFY23, exceeding MIBG/consensus FY23E (full-year) net loss forecasts of MYR323m/271m. See Top Glove's announcement dated 16 Mar 2023.
- - Read this at SGinvestors.io -
Key takeaways from Top Glove's 2QFY23 conference call
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.ketrade.com.sg/.
Wong Wei Sum CFA Maybank Research | https://www.maybank-ke.com.sg/ 2023-03-17
Previous report by Maybank:
2022-12-15 Top Glove - Losses Deepen.
Price targets by 3 other brokers at Top Glove Target Prices.
Listing of research reports at Top Glove Analyst Reports.
Relevant links:
Top Glove Share Price History,
Top Glove Announcements,
Top Glove Dividends & Corporate Actions,
Top Glove News Articles
