♦ Within expectations. Top Glove’s 4QFY08/10 net profit of RM45.1m (-
20.7% yoy; -30.1% qoq) was within our but below consensus expectations
with full-year net profit of RM245.3m (+45% yoy) accounting for 102%
and 96% of our and consensus full-year estimates respectively.
Top Glove Corporation Berhad : FY10 Net Profit Grew 45% YoY - 07/10/2010
Showing posts with label Top Glove Corporation. Show all posts
Showing posts with label Top Glove Corporation. Show all posts
Thursday, October 7, 2010
Tuesday, September 28, 2010
Top Glove Corporation Berhad : Expecting Weaker Earnings QoQ On Slower Orders and Margin Contraction - 28/09/2010
♦ 4Q10 results preview. Top Glove is expected to announce its full-year
results on 6 Oct. While we expect weaker numbers qoq, for the full-year,
we see yoy growth of approximately 40-45% largely due to: 1) higher
sales volume on the back of the new lines in F19 and F20; and 2) yoy
margin expansion resulting from better economies of scale.
Top Glove Corporation Berhad : Expecting Weaker Earnings QoQ On Slower Orders and Margin Contraction - 28/0...
results on 6 Oct. While we expect weaker numbers qoq, for the full-year,
we see yoy growth of approximately 40-45% largely due to: 1) higher
sales volume on the back of the new lines in F19 and F20; and 2) yoy
margin expansion resulting from better economies of scale.
Top Glove Corporation Berhad : Expecting Weaker Earnings QoQ On Slower Orders and Margin Contraction - 28/0...
Wednesday, September 8, 2010
RHB Equity 360° (RHB Equity 360°; Technical: Top Glove)-08/09/2010
Top Story : Gamuda – FY07/10 Results To Meet Expectations Trading Buy
Results Preview
- Taking the cue from the firm construction margins recorded by peers IJM and WCT in their just-released Apr-Jun 2010 results, we expect Gamuda's 4QFY07/10 results to come in within expectations.
- We expect Gamuda's 4QFY07/10 core net profit to come in at RM75-85m, vis-à-vis RM73m recorded in 3QFY07/10. Cumulatively, full-year net profit of RM279-289m will be in line with our forecast of RM277m and the market consensus of RM289m.
- Fair value is raised by 3% from RM3.85 to RM3.96, having priced into the KL MRT contract a 5% price inflation per annum. Maintain Trading Buy.
RHB Equity 360° (RHB Equity 360°; Technical: Top Glove)-08/09/2010
Results Preview
- Taking the cue from the firm construction margins recorded by peers IJM and WCT in their just-released Apr-Jun 2010 results, we expect Gamuda's 4QFY07/10 results to come in within expectations.
- We expect Gamuda's 4QFY07/10 core net profit to come in at RM75-85m, vis-à-vis RM73m recorded in 3QFY07/10. Cumulatively, full-year net profit of RM279-289m will be in line with our forecast of RM277m and the market consensus of RM289m.
- Fair value is raised by 3% from RM3.85 to RM3.96, having priced into the KL MRT contract a 5% price inflation per annum. Maintain Trading Buy.
RHB Equity 360° (RHB Equity 360°; Technical: Top Glove)-08/09/2010
Friday, June 25, 2010
Corporate Highlights - 25/6/2010
♦ Top Glove
Briefing Note : Demand For Gloves Still Positive
♦ JCY International Berhad
New Coverage : Riding The Technology Wave
♦ QSR Brands
Visit Note : Value In Quick Service Restaurant Business
Corporate Highlights - 25/6/2010
Briefing Note : Demand For Gloves Still Positive
♦ JCY International Berhad
New Coverage : Riding The Technology Wave
♦ QSR Brands
Visit Note : Value In Quick Service Restaurant Business
Corporate Highlights - 25/6/2010
Top Glove Corporation - Demand For Gloves Still Positive - 25/6/2010
We attended Top Glove’s briefing yesterday and set out below the key takeaways that we gathered.
♦ Outlook still positive... Top Glove is still positive on the demand for rubber gloves as gloves remain as a necessity in the healthcare industry as a form of protection. Coupled with organic growth, rising healthcare awareness, especially from developing countries, and restocking activities, these should help support demand for rubber gloves moving forward.
Top Glove Corporation - Demand For Gloves Still Positive - 25/6/2010
♦ Outlook still positive... Top Glove is still positive on the demand for rubber gloves as gloves remain as a necessity in the healthcare industry as a form of protection. Coupled with organic growth, rising healthcare awareness, especially from developing countries, and restocking activities, these should help support demand for rubber gloves moving forward.
Top Glove Corporation - Demand For Gloves Still Positive - 25/6/2010
RHB Equity 360° - 25 June 2010 (JCY, Top Glove, IJM Land, QSR, Gamuda, SapuraCrest; Technical: HL Bank)
New Coverage
- JCY International is principally involved in precision engineering for hard disk drive mechanical components, with plants in Malaysia, Thailand and China. The company is one of the largest HDD component manufacturers in the world with an estimated monthly capacity of 32m pieces.
- JCY’s main customers are the world’s top HDD vendors i.e. Western Digital and Seagate. Together, they combine a market share of 59%. JCY is estimated to command a global market share of 25% for the base plate, 16% of the top cover, and 12% of the APFA.
- We like JCY given: 1) its proven track record of manufacturing capability; 2) it is a leading HDD component manufacturer; and 3) its ability to diversify into various HDD components.
- We estimate FY09-12 EPS CAGR of 28.4% on good earnings visibility given the strong demand outlook for hard disk drives. We have assumed a target PER of 12x for JCY after imputing a discount to the peers’ weighted average FY11 PER of 13.6x to reflect its mid-range market cap.
- We initiate coverage on JCY with an Outperform call and a fair value of RM2.16 based on 12x FY11 PER.
RHB Equity 360° - 25 June 2010 (JCY, Top Glove, IJM Land, QSR, Gamuda, SapuraCrest; Technical: HL Bank)
- JCY International is principally involved in precision engineering for hard disk drive mechanical components, with plants in Malaysia, Thailand and China. The company is one of the largest HDD component manufacturers in the world with an estimated monthly capacity of 32m pieces.
- JCY’s main customers are the world’s top HDD vendors i.e. Western Digital and Seagate. Together, they combine a market share of 59%. JCY is estimated to command a global market share of 25% for the base plate, 16% of the top cover, and 12% of the APFA.
- We like JCY given: 1) its proven track record of manufacturing capability; 2) it is a leading HDD component manufacturer; and 3) its ability to diversify into various HDD components.
- We estimate FY09-12 EPS CAGR of 28.4% on good earnings visibility given the strong demand outlook for hard disk drives. We have assumed a target PER of 12x for JCY after imputing a discount to the peers’ weighted average FY11 PER of 13.6x to reflect its mid-range market cap.
- We initiate coverage on JCY with an Outperform call and a fair value of RM2.16 based on 12x FY11 PER.
RHB Equity 360° - 25 June 2010 (JCY, Top Glove, IJM Land, QSR, Gamuda, SapuraCrest; Technical: HL Bank)
Thursday, June 17, 2010
Top Glove Corporation Berhad : No Surprises - 17/06/2010
Within expectations. Top Glove’s 3QFY08/10 net profit of RM64.5m (+52.9% yoy; -8.6% qoq) was within our and consensus expectations with 9M net profit of RM200.2m (+78.3% yoy) accounting for 76% of our and consensus full-year estimates respectively.
Top Glove Corporation Berhad : No Surprises - 17/06/2010
Top Glove Corporation Berhad : No Surprises - 17/06/2010
RHB Equity 360° - 17 June 2010 (KPJ, Top Glove; Technical: Titan)
KPJ Helathcare: Brighter Prospect Ahead
Visit Note
- For FY09, KPJ recorded a revenue growth of 14.9% yoy largely due to higher contribution from all of its business segments. Moving forward, we believe KPJ’s revenue growth drivers include:
1) the opening of at least two new hospitals p.a.;
2) expansion of its existing hospitals;
3) enhancing its presence in medical tourism; and
4) higher utilisation rate per patient.
RHB Equity 360° - 17 June 2010 (KPJ, Top Glove; Technical: Titan)
Visit Note
- For FY09, KPJ recorded a revenue growth of 14.9% yoy largely due to higher contribution from all of its business segments. Moving forward, we believe KPJ’s revenue growth drivers include:
1) the opening of at least two new hospitals p.a.;
2) expansion of its existing hospitals;
3) enhancing its presence in medical tourism; and
4) higher utilisation rate per patient.
RHB Equity 360° - 17 June 2010 (KPJ, Top Glove; Technical: Titan)
Monday, June 14, 2010
RHB Equity 360° (Lafarge, Adventa; Technical: Top Glove, Hai-O)-14/06/2010
Top Story : Lafarge M Cement – Better times ahead Market Perform
Visit Note:
- While demand growth in 1HFY12/10 is likely to be flattish on yoy basis, we sense that Lafarge is positive on domestic cement consumption from 2HFY12/10, on the back of the roll out/ resumption of several largescale projects.
- Rise in demand and selling prices is to be partly offset by higher energy prices, as thermal coal prices have risen to US$98.16/metric tonne, from US$68.6 a year ago. Should the government approve TNB’s proposal to increase electricity tariff, Lafarge’s production cost will be higher, hence further lowering margins.
- Lafarge’s initial plan to invest in a new RM100m grinding plant to resolve its production bottleneck is put on hold for the time being. We believe a decision will be made in a few months’ time when it starts to see a surge in demand.
- We believe Lafarge will declare a higher dividend for FY12/10 in view of its strong cash position. Based on our estimates, Lafarge can raise FY12/10 gross DPS from 38 sen to 60 sen, translating to a yield of 9.1%.
- We are raising our FY12/10 earnings forecast by 18.7% to RM361.1m, while indicative fair value remains unchanged at RM6.83 based on 14x FY12/11 EPS of 48.8 sen. Maintain Market Perform.
RHB Equity 360° (Lafarge, Adventa; Technical: Top Glove, Hai-O)-14/06/2010
Visit Note:
- While demand growth in 1HFY12/10 is likely to be flattish on yoy basis, we sense that Lafarge is positive on domestic cement consumption from 2HFY12/10, on the back of the roll out/ resumption of several largescale projects.
- Rise in demand and selling prices is to be partly offset by higher energy prices, as thermal coal prices have risen to US$98.16/metric tonne, from US$68.6 a year ago. Should the government approve TNB’s proposal to increase electricity tariff, Lafarge’s production cost will be higher, hence further lowering margins.
- Lafarge’s initial plan to invest in a new RM100m grinding plant to resolve its production bottleneck is put on hold for the time being. We believe a decision will be made in a few months’ time when it starts to see a surge in demand.
- We believe Lafarge will declare a higher dividend for FY12/10 in view of its strong cash position. Based on our estimates, Lafarge can raise FY12/10 gross DPS from 38 sen to 60 sen, translating to a yield of 9.1%.
- We are raising our FY12/10 earnings forecast by 18.7% to RM361.1m, while indicative fair value remains unchanged at RM6.83 based on 14x FY12/11 EPS of 48.8 sen. Maintain Market Perform.
RHB Equity 360° (Lafarge, Adventa; Technical: Top Glove, Hai-O)-14/06/2010
Tuesday, April 27, 2010
Corporate Highlights - 27/04/2010
♦ Genting Singapore
Visit Note : The Competition Starts Now
♦ Manufacturing
Sector Update : Highlights From Timber & Furniture Day
♦ Building Materials
Sector Update : Higher Cement Prices Effective 1 May 10
♦ Top Glove Corporation
News Update : Proposes 1-For-1 Bonus Issue
♦ EPIC
Results Note : No Surprises
Corporate Highlights - 27/04/2010
Visit Note : The Competition Starts Now
♦ Manufacturing
Sector Update : Highlights From Timber & Furniture Day
♦ Building Materials
Sector Update : Higher Cement Prices Effective 1 May 10
♦ Top Glove Corporation
News Update : Proposes 1-For-1 Bonus Issue
♦ EPIC
Results Note : No Surprises
Corporate Highlights - 27/04/2010
Top Glove Corporation Berhad : Proposes 1-For-1 Bonus Issue-27/04/2010
Bonus issue of 1-for-1. Top Glove yesterday declared a 1-for-1 bonus issue. Assuming all existing 6.6m treasury shares are resold in the open market (maximum scenario), up to 348.0m bonus shares will be issued, bringing Top Glove’s total issued share capital to 696.0m upon completion. The entitlement date will only be announced later.
Top Glove Corporation Berhad : Proposes 1-For-1 Bonus Issue-27/04/2010
Top Glove Corporation Berhad : Proposes 1-For-1 Bonus Issue-27/04/2010
RHB Equity 360° (Genting Singapore, Cement, Furniture, Allianz, Top Glove, EPIC; Technical: Measat) - 27/04/2010
Top Story : Genting Singapore – The competition starts now Outperform
Visit Note
♦ The Casino Regulatory Authority issued a casino licence to Marina Bay Sands (MBS) yesterday, 26 Apr. Nevertheless, recall RWS needed a few days to reset the systems back to zero and to get the real “chips” ready before it could officially open, and the casino only opened a full 8 days after the licence was awarded. If we assume a similar scenario, MBS may only open in a few days time.
♦ We believe MBS would likely face similar teething issues and would also take some ime to ramp up the hotel rooms and gaming tables to full capacity. As such, while we do expect to see some shift in visitors to MBS, we believe the effect could be short term. In addition, we expect MBS’ opening to actually enlarge, rather than shrink, the gaming market, as more visitors would likely come through Singapore once both casinos are open, as the “pull factor” would be greater.
♦ Seven takeaways from recent RWS visit: 1) >60% of tables operating currently; 2) no significant drop in visitor numbers since CNY; 3) table drops in line with expectations, mass table limits raised; 4) still waiting for junket approvals; 5) hotels still fully occupied; 6) Universal Studios Singapore tickets doubled up
already; and 7) pre-operating losses to be lower qoq in 1QFY10.
♦ Post-visit, we have tweaked our FY10-12 forecasts slightly, by +0.4-0.8%. No change to our S$1.35 fair value, based on blended average of EV/EBITDA (12x FY11 based on regional average) and DCF methodologies. At current price levels, GS’ FY11 EV/EBITDA of 11.8x is now at a 6.3% discount to FY11 regional peers average of 12.6x and 20% discount to Macau peers average. As such, while we expect some potential downside in share price upon opening of MBS, we believe downside risk is limited at these levels and advise investors to take this opportunity to buy the shares on weakness. Maintain Outperform.
RHB Equity 360°(Genting Singapore, Cement, Furniture, Allianz, Top Glove, EPIC; Technical: Measat) - 27/04/...
Visit Note
♦ The Casino Regulatory Authority issued a casino licence to Marina Bay Sands (MBS) yesterday, 26 Apr. Nevertheless, recall RWS needed a few days to reset the systems back to zero and to get the real “chips” ready before it could officially open, and the casino only opened a full 8 days after the licence was awarded. If we assume a similar scenario, MBS may only open in a few days time.
♦ We believe MBS would likely face similar teething issues and would also take some ime to ramp up the hotel rooms and gaming tables to full capacity. As such, while we do expect to see some shift in visitors to MBS, we believe the effect could be short term. In addition, we expect MBS’ opening to actually enlarge, rather than shrink, the gaming market, as more visitors would likely come through Singapore once both casinos are open, as the “pull factor” would be greater.
♦ Seven takeaways from recent RWS visit: 1) >60% of tables operating currently; 2) no significant drop in visitor numbers since CNY; 3) table drops in line with expectations, mass table limits raised; 4) still waiting for junket approvals; 5) hotels still fully occupied; 6) Universal Studios Singapore tickets doubled up
already; and 7) pre-operating losses to be lower qoq in 1QFY10.
♦ Post-visit, we have tweaked our FY10-12 forecasts slightly, by +0.4-0.8%. No change to our S$1.35 fair value, based on blended average of EV/EBITDA (12x FY11 based on regional average) and DCF methodologies. At current price levels, GS’ FY11 EV/EBITDA of 11.8x is now at a 6.3% discount to FY11 regional peers average of 12.6x and 20% discount to Macau peers average. As such, while we expect some potential downside in share price upon opening of MBS, we believe downside risk is limited at these levels and advise investors to take this opportunity to buy the shares on weakness. Maintain Outperform.
RHB Equity 360°(Genting Singapore, Cement, Furniture, Allianz, Top Glove, EPIC; Technical: Measat) - 27/04/...
Friday, April 16, 2010
RHB Equity 360° (Rubber Gloves, Banks, Public Bank; Technical: Berjaya Corp) - 16/04/2010
Top Story : Rubber Gloves – Still positive on glove manufacturers Overweight
Sector Update
Top Glove : Fair value at RM15.50 Outperform
Kossan : Fair value at RM10.74 Outperform
Adventa : Fair value at RM4.34 Outperform
Hartalega : Fair value at RM7.93 Market Perform (up from UP)
♦ Despite yesterday’s pullback, YTD share prices of the glove manufacturers are still up 9.2-46.8% compared to 4.9% for the FBM KLCI and 5.8% for the FBM100. We believe the pullback was largely over concerns such as escalating raw material prices (e.g. latex) and the weakening US$ (against RM).
♦ While such concerns are valid, we believe glove manufacturers would be able to pass on the higher raw material prices and weaker US$ against RM to their customers, leaving growth prospects relatively intact.
♦ We expect demand to remain strong given that gloves are the most basic and affordable form of protection against viruses in the healthcare industry and coupled with rising awareness in healthcare standards for highly-populated countries (e.g. China and India), should help boost demand for medical gloves.
♦ No change to our earnings forecasts for now.
♦ We continue to like Top Glove (FV = RM15.50) for its position as world’s largest glove producer and Kossan (FV = RM10.74), which is currently trading at CY10 PER of 9.5x. This, in our view, is undemanding given that Kossan’s FY09-12 net profit CAGR is 13.1%.
♦ We have retained our Overweight stance on the sector as demand prospects for medical gloves remain favourable. We maintain our Outperform call on Top Glove, Kossan and Adventa. We upgraded our call on Hartalega to Market Perform from underperform previously as the recent correction in share price means that valuations are now not overly stretched.
RHB Equity 360° ( Rubber gloves, Banks, Public Bank; Technical: Berjaya Corp)-16/04/2010
Sector Update
Top Glove : Fair value at RM15.50 Outperform
Kossan : Fair value at RM10.74 Outperform
Adventa : Fair value at RM4.34 Outperform
Hartalega : Fair value at RM7.93 Market Perform (up from UP)
♦ Despite yesterday’s pullback, YTD share prices of the glove manufacturers are still up 9.2-46.8% compared to 4.9% for the FBM KLCI and 5.8% for the FBM100. We believe the pullback was largely over concerns such as escalating raw material prices (e.g. latex) and the weakening US$ (against RM).
♦ While such concerns are valid, we believe glove manufacturers would be able to pass on the higher raw material prices and weaker US$ against RM to their customers, leaving growth prospects relatively intact.
♦ We expect demand to remain strong given that gloves are the most basic and affordable form of protection against viruses in the healthcare industry and coupled with rising awareness in healthcare standards for highly-populated countries (e.g. China and India), should help boost demand for medical gloves.
♦ No change to our earnings forecasts for now.
♦ We continue to like Top Glove (FV = RM15.50) for its position as world’s largest glove producer and Kossan (FV = RM10.74), which is currently trading at CY10 PER of 9.5x. This, in our view, is undemanding given that Kossan’s FY09-12 net profit CAGR is 13.1%.
♦ We have retained our Overweight stance on the sector as demand prospects for medical gloves remain favourable. We maintain our Outperform call on Top Glove, Kossan and Adventa. We upgraded our call on Hartalega to Market Perform from underperform previously as the recent correction in share price means that valuations are now not overly stretched.
RHB Equity 360° ( Rubber gloves, Banks, Public Bank; Technical: Berjaya Corp)-16/04/2010
Thursday, April 15, 2010
RHB Equity 360° (Mah Sing, IJM, KNM; Technical: Top Glove) - 15/04/2010
Top Story : Mah Sing – 1QFY12/10 sales more than tripled Outperform
Visit Note
♦ Mah Sing recorded strong sales of RM516m in 1Q10, from RM170.2m a year ago, thanks to good responses to its new projects. With sales expected to sustain in the coming quarters underpinned by new launches, FY12/10 sales target of RM1bn now appears within reach. Among the new projects we are particularly excited over Southbay City, Garden Residence & Garden Plaza and Icon Residence @ Mont Kiara due to excellent locations and products.
♦ While not generally perceived by the market as one of the front runners for federal land parcels earmarked for development, we feel that investors should not write off Mah Sing entirely as: a) it boasts a decent list of government-linked shareholders; b) it has strong balance sheet with net cash of RM176.5m or 27.9 sen as at 31 Dec 09; and 3) it has good track record in delivering various types of properties.
♦ No change to our net profit forecasts. However, we have adjusted our FY10-12 EPS forecasts for the 1-for- 5 bonus issue that was completed in Apr, resulting in our estimates being lowered by 16.7% p.a..
♦ We have thus also lowered our RNAV based FV from RM2.45 to RM2.04. Maintain Outperform.
RHB Equity 360°(Mah Sing, IJM, KNM; Technical: Top Glove)-15/04/2010
Visit Note
♦ Mah Sing recorded strong sales of RM516m in 1Q10, from RM170.2m a year ago, thanks to good responses to its new projects. With sales expected to sustain in the coming quarters underpinned by new launches, FY12/10 sales target of RM1bn now appears within reach. Among the new projects we are particularly excited over Southbay City, Garden Residence & Garden Plaza and Icon Residence @ Mont Kiara due to excellent locations and products.
♦ While not generally perceived by the market as one of the front runners for federal land parcels earmarked for development, we feel that investors should not write off Mah Sing entirely as: a) it boasts a decent list of government-linked shareholders; b) it has strong balance sheet with net cash of RM176.5m or 27.9 sen as at 31 Dec 09; and 3) it has good track record in delivering various types of properties.
♦ No change to our net profit forecasts. However, we have adjusted our FY10-12 EPS forecasts for the 1-for- 5 bonus issue that was completed in Apr, resulting in our estimates being lowered by 16.7% p.a..
♦ We have thus also lowered our RNAV based FV from RM2.45 to RM2.04. Maintain Outperform.
RHB Equity 360°(Mah Sing, IJM, KNM; Technical: Top Glove)-15/04/2010
Thursday, March 18, 2010
Top Glove Corporation Berhad : 2Q10 Results Within Expectations - 18/03/2010
Within expectations. Top Glove’s 2QFY08/10 net profit of RM70.5m (+95.9% yoy) was within our but above consensus expectations with 1H net profit of RM135.7m (+93.5% yoy) accounting for 51.7% and 54.8% of our and consensus full-year estimates respectively. As expected, no dividend was declared for the quarter.
Top Glove Corporation Berhad : 2Q10 Results Within Expectations-18/03/2010
Top Glove Corporation Berhad : 2Q10 Results Within Expectations-18/03/2010
RHB Equity 360° (Semicon, Top Glove, Astro, Genting; Technical: Globetronics) - 18/03/2010
Top Story : Semicon – Turning stronger in 2010 Overweight Sector Update
- Gartner expects 2010 silicon wafer demand to increase 29.5% largely due to production ramp-up by major foundries to replenish the low-inventory level to replenish the low-inventory level plus anticipation of higher chips demand ahead.
- Global chip sales growth will be driven mainly by CE. We believe general theme for new product features going forward would include smaller form factor and lower ownership cost as well as greater wireless compatibility.
- Capex spending is expected to increase significantly over the next two years. Jan 10 equipment bookings were 3.5x higher than the 12-year low of US$247m in Mar 09.
- We believe chip players would likely focus on specific segments in which they have technological advance to improve its profit margins. We are positive on the latest development as this would benefit chip assemblers as margins for Unisem and MPI would likely remain resilient, supported by its customers’ higher-margin products.
- Reiterating our Overweight stance on the sector. Our top pick for the sector is Unisem.
RHB Equity 360°( Semicon, Top Glove, Astro, Genting; Technical: Globetronics)-18/03/2010
- Gartner expects 2010 silicon wafer demand to increase 29.5% largely due to production ramp-up by major foundries to replenish the low-inventory level to replenish the low-inventory level plus anticipation of higher chips demand ahead.
- Global chip sales growth will be driven mainly by CE. We believe general theme for new product features going forward would include smaller form factor and lower ownership cost as well as greater wireless compatibility.
- Capex spending is expected to increase significantly over the next two years. Jan 10 equipment bookings were 3.5x higher than the 12-year low of US$247m in Mar 09.
- We believe chip players would likely focus on specific segments in which they have technological advance to improve its profit margins. We are positive on the latest development as this would benefit chip assemblers as margins for Unisem and MPI would likely remain resilient, supported by its customers’ higher-margin products.
- Reiterating our Overweight stance on the sector. Our top pick for the sector is Unisem.
RHB Equity 360°( Semicon, Top Glove, Astro, Genting; Technical: Globetronics)-18/03/2010
RHB Equity 360° (Timber, Top Glove; Technical: CIMB) - 17/03/2010
Top Story : Timber – Prospects are looking better Neutral Sector Update
- Japan housing starts may recover from Feb 09 onwards (the first yoy growth in 15 months), given the low base in Feb 09. We may also see a yoy recovery in yearly housing starts in 2010, albeit a weak and gradual one.
- Selling prices for plywood are firming up. While official figures have yet to confirm this trend, we understand from industry players that average selling prices for plywood products have been inching up by 3-5% qoq in 1Q10 from 4Q09, the strongest increase being for floor base products. We believe that the increase in average selling prices was driven mainly by shortages in supply, which led to some panic buying from Japan trading houses. However, the risk is if the supply return to the market and if demand is not enough to offset supply, the downward price pressure could come back again.
- We increased Jaya Tiasa’s FY11-12 earnings forecasts by 30-57% after increasing our plantation FFB yield assumptions by 20-44%.
- Maintaining our sector call of Neutral. Our top picks are Ta Ann (OP; FV = RM5.95) and Evergreen (OP; FV = RM2.35).
RHB Equity 360° : 17 March 2010 (Timber, Top Glove; Technical: CIMB) -17/03/2010
- Japan housing starts may recover from Feb 09 onwards (the first yoy growth in 15 months), given the low base in Feb 09. We may also see a yoy recovery in yearly housing starts in 2010, albeit a weak and gradual one.
- Selling prices for plywood are firming up. While official figures have yet to confirm this trend, we understand from industry players that average selling prices for plywood products have been inching up by 3-5% qoq in 1Q10 from 4Q09, the strongest increase being for floor base products. We believe that the increase in average selling prices was driven mainly by shortages in supply, which led to some panic buying from Japan trading houses. However, the risk is if the supply return to the market and if demand is not enough to offset supply, the downward price pressure could come back again.
- We increased Jaya Tiasa’s FY11-12 earnings forecasts by 30-57% after increasing our plantation FFB yield assumptions by 20-44%.
- Maintaining our sector call of Neutral. Our top picks are Ta Ann (OP; FV = RM5.95) and Evergreen (OP; FV = RM2.35).
RHB Equity 360° : 17 March 2010 (Timber, Top Glove; Technical: CIMB) -17/03/2010
Wednesday, March 17, 2010
Corporate Highlights - 17/03/2010
♦ Timber
Sector Update : Prospects Are Looking Better
♦ Top Glove
Company Update : Medi-Flex Back In The Black
♦ Market Technical Reading
Daily Trading Strategy : A Potential Technical Rebound Ahead!
Corporate Highlights -17/03/2010
Sector Update : Prospects Are Looking Better
♦ Top Glove
Company Update : Medi-Flex Back In The Black
♦ Market Technical Reading
Daily Trading Strategy : A Potential Technical Rebound Ahead!
Corporate Highlights -17/03/2010
Top Glove Corporation Berhad : Medi-Flex Back In The Black- 17/03/2010
Back in the black. Medi-Flex (Not rated), reported 1HFY10 net profit of RM5.4m (against a net loss of RM2.5m in 1HFY09). We believe the improvement in earnings was largely due to operating leverage effects on the back of higher utilisation rates, which more than offset the higher latex prices (+27.4% yoy) and weaker US$ against RM (-3.9% yoy).
Top Glove Corporation Berhad : Medi-Flex Back In The Black-17/03/2010
Top Glove Corporation Berhad : Medi-Flex Back In The Black-17/03/2010
Tuesday, March 16, 2010
Corporate Highlights - 16/03/2010
♦ Tanjong plc
Results Preview : A Weaker 4Q, But Largely Expected
♦ Top Glove Corporation
Results Preview : Expect Yet Another Strong Set Of Results
♦ Berjaya Sports Toto
Results Note : No Surprises
♦ Telecommunications
Sector Update : ST Telemedia To Buy 33% Stake In U Mobile
♦ Market Technical Reading
Daily Trading Strategy : Must Stabilise Around 1,300 To Attract Bargain Hunters...
Corporate Highlights - 16/03/2010
Results Preview : A Weaker 4Q, But Largely Expected
♦ Top Glove Corporation
Results Preview : Expect Yet Another Strong Set Of Results
♦ Berjaya Sports Toto
Results Note : No Surprises
♦ Telecommunications
Sector Update : ST Telemedia To Buy 33% Stake In U Mobile
♦ Market Technical Reading
Daily Trading Strategy : Must Stabilise Around 1,300 To Attract Bargain Hunters...
Corporate Highlights - 16/03/2010