Friday, December 17, 2010

Some investors still wary of glove makers

KUALA LUMPUR: Shares of Supermax Corp Bhd and Top Glove Corp Bhd were among the top 10 losers in late afternoon trade on Friday, Dec 17 as investors worried about the outlook for the glove makers after the disappointing financial results from Top Glove recently.

At 3.46pm, Supermax was down 14 sen to RM4.19 with 1.15 million shares done while Top Glove fell 13 sen to RM4.99 with 8.28 million units transacted.

The 30-stock FBM KLCI was up 2.31 points to 1,499.83. Turnover was 821.5 million shares valued at RM1.14 billion. There were 346 gainers, 322 losers and 302 stocks unchanged.

Top Glove's earnings fell 44% to RM36.05 million for the first quarter ended Nov 30 from RM65.21 million a year ago as it was impacted by the high latex prices and a weak US dollar.

The decline in the earnings saw RHB Research cutting its FY11-13 net profit forecasts for Top Glove by 15.1%-28.6% as it reduced FY11-13 EBITDA margins by 2.2 percentage points and 4.3 percentage points respectively.

'Our fair value has been lowered to RM4.10 (from RM5.40) based on unchanged target CY11 PER of 12.5x. Underperform call on the stock remains unchanged,' RHB Research said.

No comments:

Post a Comment