Equity Analysis /
Malaysia

MY : Top Glove Corporation - Back to pre-Covid-19 margins

    Walter Aw
    Walter Aw

    Research Analyst

    Follow
    CGS-CIMB
    12 December 2021
    Published byCGS-CIMB

    1QFY8/22 net profit of RM185m (-92.8% yoy) was short of expectations, due to lower-than-expected sales volume and sharper-than-expected dip in ASPs. We forecast weaker qoq performance in the coming quarters due to declining ASPs and lower sales volume (more balanced supply-demand dynamics). Downgrade to Reduce, with a lower TP of RM1.50 (19x CY23F P/E).