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

Top Glove - Results Below Expectations; Not Out Of The Woods Yet

Published:
TOP GLOVE CORPORATION BHD (SGX:BVA) | SGinvestors.ioTOP GLOVE CORPORATION BHD (SGX:BVA)
  • 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.maybanktrade.com.sg/.




Wong Wei Sum CFA Maybank Research | https://www.maybank-ke.com.sg/ 2023-03-17



Read also Maybank's most recent report:
2024-03-21 Top Glove - Remained In The Red; Looking To Breakeven By 4QFY24.

Previous report by Maybank:
2023-12-21 Top Glove - Positives More Than Priced In.

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





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