- Top Glove (SGX:BVA)'s 2QFY24 core loss widened q-o-q to MYR65.7m, bringing 1HFY24 core losses to MYR123.6m, below our and Street’s expectations.
- Top Glove’s weaker-than-expected results were on product mix changes (resulting in lower ASPs recognised) and escalating raw material prices. Still NEUTRAL with MYR0.93 target price, 8% upside from the current Top Glove's share price.
Top Glove's 2QFY24 results overview.
- - Read this at SGinvestors.io -
- During the quarter, sales volumes expanded 18% q-o-q, offset by lower ASPs (US$17/1k pieces vs 1QFY24’s US$20/1k pieces – a result of product mix changes). Plant utilisation rate improved to 40% vs 1QFY24’s 30-33%, resulting in positive EBITDA margins recorded for two consecutive quarters.
- - Read this at SGinvestors.io -
ASP trends.
- The sequentially lower ASPs were attributed to shifts in the product mix as volumes sold for light-weighted products exceeded sales of heavy-weighted ones.
- Having said that, Top Glove intends to implement a 10% ASP hike to pass on the higher costs to customers – natural gas tariffs had increase 4% q-o-q starting March – by 3QFY24.
Outlook.
- Read more at SGinvestors.io.
Oong Chun Sung RHB Securities Research | https://www.rhbgroup.com/ 2024-03-21
Read also RHB's most recent report:
2024-04-02 Top Glove - More Time Required For Turnaround.
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
