KUALA LUMPUR: Shares of glove makers Latexx and Adventa extended their declines in late afternoon on Wednesday, Dec 29 on concerns about the outlook for the industry.
At 4.03pm, Latexx-WA fell 12 sen to RM2.03 and the shares eight sen to RM2.55. Adventa lost eight sen to RM2.39.
The FBM KLCI rose 5.19 points to 1,522.63. Turnover was 686.82 million shares valued at RM1.06 billion. There were 394 gainers, 316 losers and 334 stocks unchanged.
CIMB Equities Research said in a research note on Adventa's earnings that its FY10/10 core net profit was at 82% of its forecast and 83% of consensus numbers.
Adventa's FY10/10 core net profit, which excluded a RM7.6 million one-off tax writeback was below expectations due to higher raw material costs and a weak US dollar.
'After accounting for higher latex cost and a weaker US$, we lower our FY11-12 EPS forecasts by 10%-11%. This reduces our target price from RM3.79 to RM3.14, pegged to an unchanged 10.2 times CY11 P/E or a 30% discount to Top Glove's target price-to-earnings of 14.5 times,' said CIMB Research.
At 4.03pm, Latexx-WA fell 12 sen to RM2.03 and the shares eight sen to RM2.55. Adventa lost eight sen to RM2.39.
The FBM KLCI rose 5.19 points to 1,522.63. Turnover was 686.82 million shares valued at RM1.06 billion. There were 394 gainers, 316 losers and 334 stocks unchanged.
CIMB Equities Research said in a research note on Adventa's earnings that its FY10/10 core net profit was at 82% of its forecast and 83% of consensus numbers.
Adventa's FY10/10 core net profit, which excluded a RM7.6 million one-off tax writeback was below expectations due to higher raw material costs and a weak US dollar.
'After accounting for higher latex cost and a weaker US$, we lower our FY11-12 EPS forecasts by 10%-11%. This reduces our target price from RM3.79 to RM3.14, pegged to an unchanged 10.2 times CY11 P/E or a 30% discount to Top Glove's target price-to-earnings of 14.5 times,' said CIMB Research.
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