Thursday, December 16, 2010

Top Glove slips after weak 1Q results

KUALA LUMPUR: Shares of Top Glove Bhd fell on Thursday, Dec 16 after it reported a set of disappointing financial results while the fair value for the stock was lowered.

At 3pm, Top Glove had fallen 17 sen to RM5.28. The FBM KLCI lost 11.31 points to 1,497.8.

AmResearch trimmed the fair value to RM4.70 from RM5.40 on the weak results.

'We maintain our HOLD rating on Top Glove, but have trimmed our fair value to RM4.70/share from RM5.40/share previously. Our target PE of 13x CY11F earnings is unchanged, but we have cut our FY11F and FY12F earnings forecasts by -25% and -24%, respectively, to reflect the weaker-than-expected 1QFY11 performance, which missed both our expectations and street estimates.

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