Top Glove - Maybank Research 2023-03-17: Results Below Expectations; Not Out Of The Woods Yet

• 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 an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.

Read also Maybank's most recent report:
2025-03-21 Top Glove - Back To The Black, Upgrade To HOLD..

Previous report by Maybank:
2024-12-23 Top Glove - Turnaround Expected In FY25e.

Price targets by 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 Dividend Payout Dates & Corporate Actions,
Top Glove News