- Top Glove reported narrowing core losses in 3QFY24. This reflects volume sales growth (+13% q-o-q) amid a sequential demand recovery and rising ASP trends, offsetting surging raw material costs (+16-20% q-o-q).
- - Read this at SGinvestors.io -
3QFY24 results within expectations.
- Top Glove (SGX:BVA) reported a narrowing 3QFY24 core net loss of RM53.5m (-31.3% q-o-q, -50.4% y-o-y) on the back of higher revenue of RM636.9m (+15.7% q-o-q). Headline net profit was in the black in the quarter, mainly reflecting multiple non-core gains such as reversal for inventories written down, gains from land disposal, unrealised forex gains and others amounting to RM104m.
- - Read this at SGinvestors.io -
Volume sales expanded q-o-q, lifting margins despite higher input costs.
- 3QFY24 volume sales strengthened about 13% q-o-q, reflecting better demand as customers ramped up inventories replenishment. Meanwhile, ASP expanded 3% q-o-q to about US$19/’000 pcs to pass through higher input costs such as nitrile and latex prices which have surged 16- 20% q-o-q.
- Positively, utilisation rate for the quarter saw better improvement to around 44% based on current effective capacity of about 60b pieces annually (2QFY24: Around 39%).
Accelerating sales recovery momentum.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Jack Goh UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-06-20
Previous report by UOB:
2024-03-21 Top Glove - A Setback In 2QFY24 With Silver Linings .
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 Dividends & Corporate Actions,
Top Glove News Articles
