KUALA LUMPUR: Shares of glove manufacturers SUPERMAX CORPORATION BHD [] and TOP GLOVE CORPORATION BHD [] dipped in early trade on Monday, May 16.
Supermax shares fell eight sen to RM3.88 at 9.05am after its earnings fell 52.6% to RM24.40 million in the first quarter ended March 31, 2011 from RM51.47 million a year ago as its margins were eroded by high latex prices and the weaker US dollar.
Revenue rose 9.4% to RM241.37 million from RM220.65 million a year ago while earnings per share declined to 7.18 sen from 18.97 sen.
Meanwhile, Top Glove lost two sen to RM5.15 after CIMB Research reduced its FY11-13 net profit numbers for Top Glove by 4%- 27%, having overestimated the glove maker's cost pass-through ability and it had been too optimistic about the recovery of glove demand.
'We also cut our FY11-12 capacity assumptions by 3-7% to reflect management's latest expansion plans. The adjustments of our cost and capacity assumptions lead to a fall in our target price from RM5.98 to RM5.57. We continue to value the stock at our target market P/E of 14.5 times,' it said on Monday, May 16.
Supermax shares fell eight sen to RM3.88 at 9.05am after its earnings fell 52.6% to RM24.40 million in the first quarter ended March 31, 2011 from RM51.47 million a year ago as its margins were eroded by high latex prices and the weaker US dollar.
Revenue rose 9.4% to RM241.37 million from RM220.65 million a year ago while earnings per share declined to 7.18 sen from 18.97 sen.
Meanwhile, Top Glove lost two sen to RM5.15 after CIMB Research reduced its FY11-13 net profit numbers for Top Glove by 4%- 27%, having overestimated the glove maker's cost pass-through ability and it had been too optimistic about the recovery of glove demand.
'We also cut our FY11-12 capacity assumptions by 3-7% to reflect management's latest expansion plans. The adjustments of our cost and capacity assumptions lead to a fall in our target price from RM5.98 to RM5.57. We continue to value the stock at our target market P/E of 14.5 times,' it said on Monday, May 16.
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