KUALA LUMPUR: Glove makers advanced in late afternoon on Thursday, Feb 17 on mild buying interest in line with interest perking up in blue chips amid a cautious broader market.
At 3.33pm, the FBM KLCI was up 5.01 points to 1,511.31. Turnover was 1.19 billion shares valued at RM1.09 billion. There were 286 gainers, 491 losers and 264 stocks unchanged.
Hartalega rose 15 sen to RM6.05, Supermax added 15 sen to RM4.39 and the world's largest glove maker, Top Glove added 12 sen to RM5.14.
CIMB Equities Research has a Buy call on Supermax at RM4.24. In a report issued on Thursday after the analyst briefing, it trimmed its FY11-12 EPS by 1.7%-3.8% after lowering FY11 capacity by 8.7% to 19.85 billion pieces of gloves, in line with management's guidance.
'This reduces our target price RM6.80 to RM6.37, still based on a CY12 P/E of 11.6x or a 20% discount to Top Glove's target P/E of 14.5x,' it said.
CIMB Research said despite the lower capacity in FY11, it retained its BUY rating as it believed the earnings momentum would continue in FY11-12, underpinned by a three-year EPS CAGR of 7.7%.
'Potential re-rating catalysts include 1) the restart of its Sungai Buloh plant, 2) expanding nitrile production, and 3) increasing distribution income. Supermax now offers dividend yields of 2.6%-2.8%,' it said.
At 3.33pm, the FBM KLCI was up 5.01 points to 1,511.31. Turnover was 1.19 billion shares valued at RM1.09 billion. There were 286 gainers, 491 losers and 264 stocks unchanged.
Hartalega rose 15 sen to RM6.05, Supermax added 15 sen to RM4.39 and the world's largest glove maker, Top Glove added 12 sen to RM5.14.
CIMB Equities Research has a Buy call on Supermax at RM4.24. In a report issued on Thursday after the analyst briefing, it trimmed its FY11-12 EPS by 1.7%-3.8% after lowering FY11 capacity by 8.7% to 19.85 billion pieces of gloves, in line with management's guidance.
'This reduces our target price RM6.80 to RM6.37, still based on a CY12 P/E of 11.6x or a 20% discount to Top Glove's target P/E of 14.5x,' it said.
CIMB Research said despite the lower capacity in FY11, it retained its BUY rating as it believed the earnings momentum would continue in FY11-12, underpinned by a three-year EPS CAGR of 7.7%.
'Potential re-rating catalysts include 1) the restart of its Sungai Buloh plant, 2) expanding nitrile production, and 3) increasing distribution income. Supermax now offers dividend yields of 2.6%-2.8%,' it said.
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