- Keep BUY rating on Top Glove with new DCF-derived Top Glove's target price of MYR1.28 from MYR1.26, 25% upside from the current Top Glove's share price.
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- Despite the weaker-than-expected results, we take cognisant of the notable improvement in operating dynamics and management’s ongoing commitment to streamline operating efficiency that have enabled the group to be in a better position for a turnaround.
Results overview.
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- Realised ASP was only up by 3% q-o-q to US$19.7 bringing its full year FY24 ASP to US$19.3 (-11% y-o-y). Sales volume spiked by 32% q-o-q (+91% y-o-y) to 8.8bn pieces mainly driven by strong growth in the US where sales volume soared 117% q-o-q in 4QFY24.
- Raw material prices were mixed, with natural latex at -1% q-o-q, offset by the 8% q-o-q increase in nitrile butadiene rubber (NBR) prices. Plant utilisation rate improved further to 59% (vs 49% in 3QFY24) which resulted in Top Glove’s core loss narrowing.
Key takeaways from briefings.
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