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Top Glove: 'Hold' call maintained
Published on: Wednesday, March 14, 2018

Kuala Lumpur: Maybank IB Research (Maybank IB) has maintained a "hold" call on Top Glove Corp Bhd as the company's performance is unaffected by the weaker US dollar.

The research firm said the company's upcoming second quarter earnings for the 2018 financial year (2Q18) is expected to be flattish quarter-on-quarter.

"We think organic growth volume ahead could be slower as China resumes production gradually and Malaysian players expand their capacity. However, earnings growth could accelerate from 4Q18 with contribution from Aspion," it said.

Maybank IB said Top Glove's slower sales volume in the first half of FY18 compared to FY17 could be partially attributed to the production cut in China and shortage of gas supply during the winter months.

"We maintain our earnings per share forecasts and "hold" call with a target price of RM9.85," it added.

At 10.51 am, Top Glove's share price rose 24 sen to RM9.92 with 1,974,200 lots changing hands. – Bernama

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