Top Glove Corporation – In glowing health. At
yesterday's FY09 results briefing, Top Glove dwelt on
its strongest earnings ever, its plans and the industry
outlook. Management’s comments were in line with our
expectations. The 54% yoy jump in the company’s
bottomline resulted from an 11% rise in revenue from
strong demand, better cost control as well as favourable
latex and US$ movements compared to the previous year.
Top Glove is confident that the global demand for rubber
gloves will continue to grow at an average 8-10% per
annum. Management indicated that it is prepared to
expand further should the need arise. We continue to
give the thumbs-up to this volume player which also
boasts strong finances. We retain our earnings
forecasts, BUY call and end-CY10 target price of
RM10.55, which we continue to peg to our target market
P/E of 15x. Potential re-rating catalysts include the
continuing uptick in demand and ongoing capacity
expansion
compliments of CIMB Berhad
No comments:
Post a Comment