Top Glove

[winston]

Tropicana sells 1.85 million Top Glove shares at loss

by Justin Lim

The property developer disposed of 1.85 million Top Glove shares for RM9.98 million, or an average selling price of RM5.395 per share, at below its investment cost of RM12.59 million (RM6.805 per share).

Following the share sales, the property developer still holds 12.47 million shares, or 0.16%, in Top Glove.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... hares-loss

[winston]

not vested

Top Glove (TPGC.KL) - Takeaways from Citi's Pan Asia Virtual Conference
2021

We hosted several Group meetings with Top Glove's management at our virtual
conference recently.

Key takeaways include:

[1] Demand is still generally healthy with structural LT drivers intact, but ASPs are moderating,

[2] No new issues raised, the Group is hopeful for a resolution on the US CBP ban this month,

[3] Management is less worried by the smaller new entrants in Malaysia but
acknowledged that Chinese expansion poses a risk if executed per plan.

We have a Buy rating on Top Glove.

Source: Citi

[winston]

not vested

Undemanding valuations. Valuations are attractive at 12.5x FY22 earnings per share (EPS), despite our forecast factoring in normalisation of ASPs from FY21 onwards. At these levels, we believe the stock has priced in the lower ASPs.

Lifting of US ban would be catalyst. The revocation of the Withhold Release Order (WRO) ban by the US Customs Border and Protection (CBP) could be a catalyst to help boost its sales volume. We understand the Group still intends to continue with its plan to list in Hong Kong.

TP: RM 7.25

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... OPG_MK.xml

[behappyalways]

Too many Johnny comes lately...

RHB Research has cut Top Glove's financial years 2021, 2022 and 2023 blended average selling prices (ASPs) to US$65, US$42 and US$33 from US$69, US$49 and US$35 respectively

Top Glove's 9M earnings miss estimates, glove prices to continue falling: RHB Research
https://www.nst.com.my/business/2021/06 ... alling-rhb

[behappyalways]

Top Glove Malaysia gets clearance to resume exports of gloves to the US
https://www.theedgesingapore.com/news/c ... -gloves-us

[behappyalways]

Malaysia's Top Glove quarterly earnings plunge 48% on slower sales
https://www.reuters.com/business/malays ... 021-09-17/

[behappyalways]

Not vested...

For 4q2021, top glove posted 7.5 cents(RM) eps and nta of 75 cents(RM).

Annualised the 7.5 cents, that would be 30 cents (RM) eps for a year giving a PE of 10 given that share price is RM3 and price/nta is 4.

The latest quarter earnings might be a better guage of the potential earnings in the next few quarters provided that the selling price of gloves (asp) does not fall drastically.

Looking at pe of 10 and price/nta of 4...it is not attractive enough even though share price has come down a lot.

Maybe pe of 6-8( which meant at least another 20% downside) but this is provided that selling price of gloves does not fall drastically as more glove supply comes available

[behappyalways]

Top Glove managing director Datuk Lee Kim Meow said the ASP for gloves is likely to ease by between 8% and 10% every month, going forward. However, he thinks the downtrend will be cushioned by the group’s resumption of sales to the US market by the end of September.

Top Glove says ready to face expected headwinds
https://www.theedgemarkets.com/article/ ... -headwinds

[winston]

not vested

* D/G Top Glove to Neutral, cut TP to RM3.00 from RM6.13

Top Glove's 4Q FY21 net profit was RM608 mn (-48% YoY and -70% QoQ).
*12M FY21 results was a miss at RM7,889 mn (+350% YoY) at 91%/85% of street/CSe.
* The softer QoQ performance was due to ASP of -32% and sales volume of -20%.

In addition to the full impact of the US ban, utilisation was hit by the lockdowns imposed in Malaysia.

In the next few quarters:
(1) sales volume should improve significantly, as exports to the US resume,
(2) nitrile ASP is expected to fall 8-10% MoM,
(3) raw material prices are declining more swiftly, and
(4) expansion is being scaled back to allow the market to stabilise.

*We cut FY22-23E EPS by 33-65% due to the faster-than -expected ASP decline in recent months*, and introduce FY24E.

Although the magnitude of decline is slowing down and ASP appears to be closer to the bottom, we think the stock is unlikely to rebound until there is clearer earnings visibility.

*Downgrade to NEUTRAL and cut TP to RM3.00 (from RM6.13)*.

Beyond the consolidation phase, we expect Top Glove to stand out vs peers, on its enhanced ESG practices and much improved efficiencies.

Source: CS

[winston]

not vested

* Top Glove (TPGC.KL) - Downgrade to Sell as ASP Moderation Is Kicking in Hard & Fast

4QFY21 prints were disappointing as volume was weighed in by the US CBP ban and production disruption, alongside a more severe-than-expected ASP contraction;

Headline PATMI fell 59%/74% YoY/QoQ to RM532.0mn taking full-year PATMI to RM7.87bn (4.5x YoY).

A record year, but made up only 86-89% of Citi/consensus full-year estimates; a miss.

More important, outlook continues to be challenging with ASP potentially reaching pre-COVID levels by early CY22E.

Our FY22/23E estimates are down sharply by 79/71% as we slash our ASP assumptions; new TP down to RM2.65 (from RM7.00); downgrade to Sell.

Source: Citi