Top Glove - RHB Invest 2024-03-21: Progressing Towards A Meaningful Recovery

Top Glove - Progressing Towards A Meaningful Recovery

Top Glove (SGX:BVA) | SGinvestors.ioTop Glove (SGX:BVA)
  • 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 -
  • 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.
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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.


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Oong Chun Sung RHB Securities Research | 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


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