Top Glove - RHB Invest 2024-06-18: Operating Dynamics Turned Favourable; Upgrade To BUY

• Top Glove (SGX:BVA) is scheduled to report its 3QFY24 (Mar-May 2024) results on 19 Jun. We expect core loss to narrow q-o-q to MYR40-45m (vs a core loss of MYR66m in 2QFY24), on the back of a recovery in sales volume and ASP.
• - Read this at SGinvestors.io -
• Our BUY call is premised on improving investor sentiment (from favourable operating dynamics) – we think Top Glove (being a high-beta) is poised for a meaningful share price recovery in 2024.

Top Glove's results preview.

• We expect Top Glove to deliver a core loss of MYR40-45m from a core loss of MYR66m in 2QFY24 on the back of:
  1. - Read this at SGinvestors.io -
  2. recovery in ASP.
• These catalysts should be offset by the recent 5-6% uptick in natural gas tariff and escalation of raw material prices (i.e. natural latex: +12%; acrylonitrile: +3.6%).

Industry dynamics turning favourable.

• Read more at SGinvestors.io.

Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.

Read also RHB's most recent report:
2025-05-13 Top Glove - Casualty Of US-China Trade Truce; Downgrade To SELL.

Previous report by RHB:
2025-03-21 Top Glove - A Commendable Performance; Upgrade To BUY.

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