KUALA LUMPUR, March 20 ― Maybank Investment Bank Research has maintained its “buy” call on Top Glove Corporation Bhd as the company’s financial results for the second quarter of financial year 2020 (Q2 2020) was better quarter-on-quarter.
In a note, Maybank said Top Glove’s earnings in the second half could be substantially stronger with the confluence of all positives, such as solid demand, firmer ringgit against the US dollar as well as lower rubber costs.
“We raise our FY20-21 earnings per share (EPS) by nine per cent per annum and maintain our FY22 projection.
“However, our target price is lowered to RM6.32 in view of the present market volatility,” the research house said.
Top Glove's net profit rose 9.3 per cent year-on-year (y-o-y) to RM115.68 million in the Q2 ended Feb 29, 2020 on the back of steady volume growth.
Revenue improved to RM1.23 billion from RM1.16 billion previously, mainly due to a strong 14 per cent volume growth in the nitrile glove segment. ― Bernama