KUALA LUMPUR (Jan 11): Glove manufacturers were in focus on Wednesday, emerging as the top gainers as optimism returned following expectations of weaker latex prices and a more stable foreign exchange.
At 3.24pm, Supermax was up 38 sen to RM4.31 with 8.13 million shares done, Top Glove added 22 sen to RM5.28, Hartalega 20 sen to RM6.20 and Kossan 19 sen to RM3.49.
Top Glove-CI jumped 15.5 sen to 30.5 sen while Supermax-CE added four sen to 7.5 sen with 22.32 million units done.
Sentiment perked up following positive comments from Supermax executive chairman Datuk Seri Stanley Thai.
He expected the company to record between RM100 million and RM110 million in profit after tax for the financial year ended Dec 31, 2011.
For the nine-months ended Sept 30, FY11, Supermax reported RM77.86 million earnings on the turnover of RM750.70 million.
As for 2012, Thai was upbeat about a better year as natural rubber price was expected to fall to between RM5.50 and RM6 per kg in 1QCY2012 while foreign exchange was expected to be stable.
Meanwhile, CIMB Equities is maintaining its Sell rating on Top Glove Corp Bhd and target price of RM3.61, which is still based on a forward price-to-earnings of 13.05 times.
“Consensus numbers are still too high and valuations expensive. Hartalega is a better proxy for the glove sector,” it said on Wednesday.
CIMB Research said Top Glove’s 1Q12 briefing revealed that demand has not picked up despite a 40% slump in rubber latex price from last April’s peak.
The research house added this was due to overcapacity and cautious business sentiment in the EU and US. Also, hospitals and governments are better prepped for ‘flu outbreaks.
At 3.24pm, Supermax was up 38 sen to RM4.31 with 8.13 million shares done, Top Glove added 22 sen to RM5.28, Hartalega 20 sen to RM6.20 and Kossan 19 sen to RM3.49.
Top Glove-CI jumped 15.5 sen to 30.5 sen while Supermax-CE added four sen to 7.5 sen with 22.32 million units done.
Sentiment perked up following positive comments from Supermax executive chairman Datuk Seri Stanley Thai.
He expected the company to record between RM100 million and RM110 million in profit after tax for the financial year ended Dec 31, 2011.
For the nine-months ended Sept 30, FY11, Supermax reported RM77.86 million earnings on the turnover of RM750.70 million.
As for 2012, Thai was upbeat about a better year as natural rubber price was expected to fall to between RM5.50 and RM6 per kg in 1QCY2012 while foreign exchange was expected to be stable.
Meanwhile, CIMB Equities is maintaining its Sell rating on Top Glove Corp Bhd and target price of RM3.61, which is still based on a forward price-to-earnings of 13.05 times.
“Consensus numbers are still too high and valuations expensive. Hartalega is a better proxy for the glove sector,” it said on Wednesday.
CIMB Research said Top Glove’s 1Q12 briefing revealed that demand has not picked up despite a 40% slump in rubber latex price from last April’s peak.
The research house added this was due to overcapacity and cautious business sentiment in the EU and US. Also, hospitals and governments are better prepped for ‘flu outbreaks.
