KUALA LUMPUR: TOP GLOVE CORPORATION BHD []'s shares declined in early trade on Monday, June 20 as analysts remained cautious on the stock's outlook given the volatility of latex prices as well as higher energy costs.
At 9.05am, Top Glove fell four sen to RM5.22 with 4,000 shares traded.
Top Glove's net profit for the third quarter ended May 31, 2011 fell 60.3% to RM25.60 million from RM64.48 million a year earlier due mainly to higher latex price and weakening US dollar.
Revenue eased 3.7% to RM535.36 million from RM555.85 million. Earnings per share were 4.14 sen. It declared a first single tier net interim dividend of 5 sen, payable on July 21, 2011.
MIDF Research in a note June 20 said it expects Top Glove's sales volumes in 4QFY11 to grow but remain cautious due to high volatility of latex prices coupled with risks of further deterioration in rubber glove demand.
'Therefore, we downgrade our recommendation to SELL with a lower target price of RM4.18 per share.
'We ascribe a PER12 of 14 times, which is Top Glove's average 3-year forward PER band,' it said.
At 9.05am, Top Glove fell four sen to RM5.22 with 4,000 shares traded.
Top Glove's net profit for the third quarter ended May 31, 2011 fell 60.3% to RM25.60 million from RM64.48 million a year earlier due mainly to higher latex price and weakening US dollar.
Revenue eased 3.7% to RM535.36 million from RM555.85 million. Earnings per share were 4.14 sen. It declared a first single tier net interim dividend of 5 sen, payable on July 21, 2011.
MIDF Research in a note June 20 said it expects Top Glove's sales volumes in 4QFY11 to grow but remain cautious due to high volatility of latex prices coupled with risks of further deterioration in rubber glove demand.
'Therefore, we downgrade our recommendation to SELL with a lower target price of RM4.18 per share.
'We ascribe a PER12 of 14 times, which is Top Glove's average 3-year forward PER band,' it said.
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