Top Glove Q1 profit slips to RM42m

Top Glove Corp Bhd's pre-tax profit in the first quarter ended Nov 30, 2011 slipped to RM41.59 million from RM44.41 million in the same quarter of 2010.

Revenue, however, rose to RM554.84 million from RM491.51 million previously.

In a statement today, its chairman, Tan Sri Lim Wee Chai, said the retracement in latex prices and the stronger greenback delivered a generous boost to the group's earnings.

"With the improved performance, our cash flow continues to strengthen, allowing us to expand capacity and invest in efficiency improvement," he said.

The group's net cash position increased by 24.9 per cent to RM317.55 million as at Nov 30, 2011, he said.

He said in this quarter, with the completion of new facilities, the total group capacity has expanded to around 37 billion pieces of gloves per annum.

Lim said the downtrend in latex prices would likely be sustained given the uncertainty in the European debt crisis and the expectation of a slowdown in the global economy going into 2012.

"Nevertheless, we are still continuing with our strategy of achieving a more balanced product mix by increasing our production of nitrile gloves," he said. -- Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KL shares higher at midday

KUALA LUMPUR:Share prices on Bursa Malaysia were higher at mid-day today with plantation stocks leading gains, dealers said.

At lunch break, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.09 points or 0.21 per cent to 1,467.2.

Plantation stocks which retreated after a recent sell-off, saw the likes of PPB Group today, rising 26 sen to RM16.66 and KLK gaining 16 sen to RM22.28.

However, according to HwangDBS Vickers Research, the benchmark index will probably struggle to overcome the immediate resistance threshold of 1,475 moving ahead.

The research house reckons that the local bourse might not show much upside after outperforming regional peers yesterday.

It said the market could see an added interest in Proton on reports that it would be taken over at about RM6 per share and Coastal Contracts having secured RM233 million vessel contracts.

The Finance Index fell 4.68 points to 13,073.7 and the Plantation Index shed 7.91 points to 7,898.18 but the Industrial Index rose 8.63 points to 2,653.77.

The FBM Emas Index increased 10.75 points to 13,089.13, the FBM Mid 70 Index added 46.021 points to 11,077.41 and the FBM ACE Index gained 18.29 points to 4,132.49.

Gainers led losers by 324 to 291 with 274 counters traded unchanged.

Turnover stood at 974.25 million lots worth RM555.68 million.

For the actives, JCY-CD was flat at 31 sen, Proton-CG lost 3.5 sen to 54 sen and Proton-CH fell four sen to 46 sen.

Among heavyweights, Maybank declined two sen to RM8.21, Sime Darby rose four sen to RM8.99 and CIMB was up one sen at RM6.93. - Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Higher raw materials, forex loss weigh on Top Glove

KUALA LUMPUR (Dec 16): TOP GLOVE CORPORATION BHD []’s earnings fell 12.81% to RM31.43 million in the first quarter ended Nov 30, 2011 from the RM6.05 million a year ago as it was impacted by higher raw material prices and the oversupply in the industry but it performed better when compared to the preceding quarter.

“The current quarter’s net profit was also impacted by the recognition of net loss in foreign exchange amounting to RM13.3 million compared with a net gain of RM4.7 million in the corresponding quarter last financial year,” it said in a statement to Bursa Malaysia on Friday.

The world’s largest glove maker said its revenue rose 12.9% to RM554.84 million from RM491.51 million. Earnings per share declined to 5.08 sen from with 5.83 sen.

Top Glove, however performed better when compared with the preceding quarter in terms of revenue and earnings. It revenue rose 2.4% to RM554.84 million from RM541.84 million in the preceding quarter, while net profit increased 21.0% to RM32.46 million from RM26.82 million.

“The improved performance in the current quarter was largely attributed to a decline in latex prices which fell by 9.3% from the preceding quarter (from RM9.19 per kg in the quarter ended Sept 30, 2010 to RM8.34 a kg in the quarter ended Nov 30, 2011), and a stronger average US dollar against the ringgit which improved by 4.0% (from RM3 to RM3.12).

Elaborating on the raw materials, it said average latex price rose by 16% from RM7.19 per kg in the first quarter ended Nov 30, 2010 to RM8.34 a kg in Nov 30, 2011.

The average nitrile price has also increased by 46.4% from US$1.40 a kg to US$2.05 a kg during the period.

Top Glove group chairman, Tan Sri Lim Wee Chai expected the retracement in latex prices and the stronger greenback to deliver a generous boost to the group’s earnings.

“With the improved performance, our cash flow continues to strengthen, allowing us to expand capacity and invest in efficiency improvement,” he added.

Lim said the group’s net cash position increased 24.9%, rising to RM317.55 million as at Nov 30, 2011.

Top Glove’s total group capacity expanded to 37 billion pieces of gloves per annum in the just ended quarter after the completion of new facilities.

On the outlook for latex prices, Lim expected the downtrend in prices to likely be sustained given the uncertainty in the European debt crisis and the expectation of a slowdown in the global economy going into 2012.

“Nevertheless, we are still continuing with our strategy of achieving a more balanced product mix by increasing our production of nitrile gloves,” he said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KLCI in the black mid-day, gains limited

KUALA LUMPUR (Dec 16): The FBM KLCI remained in positive territory at the mid-day break on Friday in line with the gains at key regional markets, but gains were limited as sentiment stayed brittle with possible cuts in the credit ratings of euro zone countries.

Further compounding the already worried investors was Fitch Ratings’ downgrade of Goldman Sachs, Deutsche Bank and five other large banks based in Europe and the United States, citing "increased challenges" in the financial markets.

The FBM KLCI added 3.01 points to 1,467.12 at the mid-day break, lifted by PLANTATION []s and select blue chips.

Gainers led losers by 324 to 291, while 274 counters traded unchanged. Volume was 974.25 million shares valued at RM555.68 million.

The ringgit strengthened 0.25% to 3.1788 versus the US dollar; crude palm oil futures for the third month delivery rose RM29 per tonne to RM3,000, crude oil added 28 cents per barrel to US$94.15 while gold jumped US$18.13 an ounce to US$1,588.65.

At the regional markets, Japan’s Nikkei 225 added 0.51% to 8,420.30, Hong Kong’s Hang Seng Index rose 0.61% to 18,136.23, the Shanghai Composite Index edged up 0.01% to 2,181.22, Taiwan’s Taiex added 0.64% to 6,807.80, South Korea’s Kospi rose 0.82% to 1,834.01 and Singapore’s Straits Times Index was up 0.48% to 2,647.85.

On Bursa Malaysia, PPB was up 26 sen to RM16.66, Sungei Bagan and KLK up 16 sen each to RM2.98 and RM22.28, while United Plantations gained 12 sen to RM18.52.

Other gainers included Orient that rose 21 sen to RM5.35, Jaya Tiasa up 19 sen to RM7.10, Dialog 14 sen to RM2.58, Nestle 12 sen to RM56.14 and BHIC up 11 sen to RM3.09.

UMW was the top loser and fell 35 sen to RM6.49 after the company on Thursday said it was not in talks to by Khazanah’s stake 42.7% stake in PROTON HOLDINGS BHD [].

Other losers included Carlsberg that fell 19 sen to RM8.80, Southern Acids down 17 sen to RM2.15, Panasonic and JT International 14 sen each to RM19.90 and RM6.86, GAB 12 sen to RM13.38, Malayan Flour Mills 11 sen to RM7.56 and Advanced Packaging nine sen to RM1.13.

Meanwhile, the actives included Proton, JCY, Kurnia Asia, Sanichi and Wijaya.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Maybank group CFO slated to head Bank Internasional Indonesia

KUALA LUMPUR (Dec 16): MALAYAN BANKING BHD []’s group chief financial officer, Khairussaleh Ramli has been identified to be the president director of Bank Internasional Indonesia (BII).

“This appointment is subject to approval from Bank Indonesia as well as the shareholders of BII at an EGM to be convened,” Maybank said in a statement on Friday.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

MAS sees 20m shares done off-market

KUALA LUMPUR (Dec 16): MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) saw 20 million of its shares transacted in an off-market deal at average price of RM1.30.

The shares accounted for 0.59% of the airline’s paid-up of 3.342 billion shares.

MAS share price was unchanged at RM1.30 at the midday break.

The FBM KLCI rose 3.01 points to 1,467.12. Turnover was 964.25 million shares valued at RM555.67 million. There were 324 gainers, 291 losers and 274 stocks unchanged.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

UMW top loser on confirmation not buying Proton stake

KUALA LUMPUR (Dec 16): UMW HOLDINGS BHD [] was the top loser in the morning session on Friday after the company confirmed it had not submitted a bid to Khazanah Nasional for its 42.7% Proton Holding Bhd stake

At 12.12pm, UMW was down 34 sen to RM6.50. There were 423,900 shares done.

The FBM KLCI rose 2.89 points to 1,467. There were 933 million shares done valued at RM526.42 million. There were 313 gainers, 284 losers and 274 stocks unchanged.

On Thursday, UMW confirmed that it had not submitted any bid to Khazanah for the Proton stake.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Dialog advance after fixing rights share price, analysts positive

KUALA LUMPUR (Dec 16): DIALOG GROUP BHD []’s shares climbed on Friday after it fixed the price of its rights issue and warrants, drawing positive response from investors and analysts.

At 11.58am, it was up 14 sen to RM2.58 with 5.7 million shares done.

The FBM KLCI rose 2.27 points 1,466.38. The broader market was firmer, with 305 gainers to 265 losers and 279 stocks unchanged. Turnover was 899.28 million shares done valued at RM495.62 million.

Dialog, which is undertaking a cash call to raise funds for more investments in the upstream oil and gas opportunities, had on Thursday fixed the rights shares at RM1.20 each and the exercise price of the warrants at RM2.40 each.

The issue price would be a discount of about 46% to the theoretical ex-rights price of RM2.23 per share, based on the five-day volume-weighted average market price (VWAMP) up to Dec 14 of RM2.43.

As for the warrants, it said the exercise price was 8% above the theoretical ex-rights price of RM2.23 per share, based on the five-day VWAMP up to Dec 14 of RM2.43.

RHB Research Institute said on Friday it was positive about Dialog’s corporate exercise involving the rights issue with warrants.

On Thursday, Dialog announced that the rights issue has been priced at RM1.20 a share for the new rights and RM2.40 a warrant.

The price of the new shares was a discount of 46.5% to the estimated theoretical ex-price of RM2.23/share (based on the five-day volume weighted average market price of Dialog up to Dec 14.

“We believe the additional discount is mainly to entice shareholders given the volatile market conditions, but the higher exercise price for the warrants suggests that the company is confident on delivering in the longer term,” it said.

RHB Research it was positive on the exercise despite the potential dilutive impact, as both projects are already secured and will propel Dialog’s long-term growth prospects.

It said that Dialog remained one of its premium-play picks as it still liked the company for its long-term project visibility and sound management track record.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.