[Dow Jones] STOCK CALL: OSK keeps Buy rating on Top Glove (7113.KU) with MYR9.27 target price based on 15X FY11 earnings; analyst Jason Yap notes global demand for rubber gloves outpacing supply; in 2009 estimated at 140 billion pieces/year, expected to grow about 7% per year. In 2008 demand was about 130 billion pieces but there was minimal capacity expansion by rubber glove manufacturers due to the global economic slowdown. Currently, Top Glove has total capacity of 355 production lines, capable of producing 31.5 billion pieces of gloves/year. By end-2010, total annual capacity would expand by 10%, or 3.0 billion pieces, expected to help drive earnings. Shares +0.6% at MYR8.45. (VGB)
Dow Jones Newswires
October 14, 2009 21:52 ET (01:52 GMT)
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