KLCI Stock - TOPGLOV / 7113 - 2010 Quarter 3

TOP GLOVE CORPORATION BERHAD

Listing Date: 16.05.2002
IPO Price: 2.700
Market: MAIN
Sector: INDUSTRIAL
Par Value: 0.50
Major Industry: Apparel & Textiles
Sub Industry: Apparel Manufacturers
Market Cap : 308447831*12.92 = 3,985,145,976.52 (Large)
NTA per share : (1016767-22457)/303824 = 3.27
P/BV : 12.92/3.27 = 3.95
Forecast P/E now : (12.92-0.29)/0.9337 = 13.53 (Moderate)
ROE : 25.97% (High)
DY : 0.29/12.92*100 = 2.24% (Low)
Fixed Asset Turnover(3 year) : (1.4647+1.352+1.2718)/3 = 1.3628 (High)
Liquidity Ratio : 736084/256281 = 2.8722 (Moderate)
Receivables Collection Period : (283512+171558)/2/(1965392/365) = 42 days (Good)
My Target Price : 14.94+0.29 = 15.23 (PE 16, EPS 0.9337, DPS 0.29)
My Decision : BUY
My Comment : Revenue increasing, profit QbQ increasing stop but still higher than preceding year corresponding quarter, good cash flow, low debt and decreased, navps increasing
Technical Support Price : 12, 11.2
Risk Rating : LOW
OSK Target Price : 15.15 (17 Jun 10)

Top Glove Corporation Berhad is a Malaysia-based investment holding company providing management services. The Company’s subsidiaries are engaged in the manufacture and trading of gloves; producing and selling latex concentrate, and property investment and trading of machinery. It operates in Malaysia, Thailand and People’s Republic of China. The Company's subsidiaries include Top Glove Sdn. Bhd., TG Medical Sdn. Bhd., Great Glove Sdn. Bhd., Top Glove Engineering Sdn. Bhd. and TG Medical (U.S.A.) Inc.

My notes based on 2010 Quarter 3 report (number in '000):
- The Group sales revenue for the 9 months ended 31 May 2010 has increased by 39% from last year corresponding period. The profit before tax for 9 months and 3 months ended 31 May 2010 comparing to last year’s same period has increased by 85% respectively. The group 9 months net profit is 21% higher than the full year profit for financial year 2009
- The Group continues with its strong profit growth momentum as demand for gloves continue to increase, especially from the emerging markets and also benefiting from cost saving measures implemented at all factories, improvements in product quality, productivity, as well as aggressive marketing strategies to maintain its world number one market position
- The Group announced an interim dividend of 14 sen per share, which is 100% higher than last year’s interim dividend of 7 sen per share. The balance sheet position strengthened further with a net cash position of RM273.0 million and free cash flow of RM147.2 million for the period ended 31 May 2010. The Group had fully redeemed the RM35 million bonds before its maturity in December 2010, in view of the strong cash flow position
- The Group registered PBT of RM83.3 million for current quarter compared with RM93.9 million in quarter ended 28 February 2010. The 3 months ended 31 May 2010 has been a challenging quarter for the Group due to the head winds faced by the Group in which average latex price had increased by 24% and average US Dollar (USD) had weakened by 3%. This has an impact on the performance for the quarter due to the time lag of passing on the cost to the customers. However, as at 1st June 2010, the latex price has declined by 7% from the peak of RM7.76 per kg and USD has also strengthened by 3% from the low of 3.17
- Estimate next 4Q eps after 2010 Q3 result announced = 0.2122*4 = 0.8488*1.1 = 0.9337(10% adjustment), estimate PE on current price 12.92 = 13.53(DPS 0.29)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.235*4 = 0.94, estimate PE on current price 12.56 = 13.13(DPS 0.22)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.217*4 = 0.868, estimate highest/lowest PE = 14.31/10.75 (DPS 0.22)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.191*4 = 0.764, estimate highest/lowest PE = 12.23/10.2 (DPS 0.22)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.1424*4 = 0.5696, estimate highest/lowest PE = 14.04/10.8 (DPS 0.15)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.1221*4 = 0.4884, estimate highest/lowest PE = 13.21/9.89 (DPS 0.15)

TOPGLOV latest news (English)

TOPGLOV latest news (Chinese)

a_date	year	qrt	h_price	l_price	div	roe	c_roe	rev	c_rev	pbt	c_pbt	prof	c_prof	eps	c_eps	asset	liab	mino	equi	cfo	cfi	cff	cash	fcf	net	final	share	c_share	market	date	prof_m	pe	de	navps	vat
2010-06-16	2010	3	N/A	N/A	0.14	0.0620	0.1925	555851	1538046	83324	263852	64484	200218	0.2122	0.6626	1341883	301896	23220	1039987	185552	-38354	-49201	185848	147198	97997	283845	303824	302164	3907176	2010-05-31	0.1499	-	0.2903	3.35	0.2154
2010-03-17	2010	2	14.02	11.18	-	0.0741	0.1426	509895	982195	93885	180528	70526	135734	0.2350	0.4536	1288425	336564	22594	951861	137980	-31789	-14343	185848	106191	91848	277696	300085	299212	3769067	2010-02-28	0.1841	-	0.3536	3.1	0.2304
2009-12-16	2010	1	12.64	9.55	-	0.0715	0.0715	472300	472300	86643	86643	65208	65208	0.2170	0.2170	1197392	285938	22663	911454	88543	-18082	-19250	185848	70461	51211	237059	300516	300516	2854902	2009-11-30	0.1834	-	0.3137	2.96	0.2319
2009-10-08	2009	4	9.56	8.01	0.15	0.0672	0.2000	427346	1531909	78998	221539	56831	169154	0.1910	0.5712	1132409	286432	21464	845977	327368	-67342	-182938	120094	260026	77088	197182	297467	296140	2424356	2009-08-31	0.1849	14.3322	0.3386	2.77	0.3038
2009-06-23	2009	3	8.15	6.3	0.07	0.0526	0.1402	371965	1104563	54338	142541	42167	112323	0.1424	0.3796	1086646	285517	23229	801129	231485	-55269	-123535	120470	176216	52681	173151	296093	295936	1924604	2009-05-31	0.1461	-	0.3564	2.63	0.2201
2009-04-07	2009	2	6.6	4.98	-	0.0480	0.0935	346522	732598	44905	88203	35997	70156	0.1221	0.2380	1085903	335200	22768	750703	164175	-44697	-57204	120470	119478	62274	182744	294758	294754	1467894	2009-02-28	0.1296	-	0.4465	2.47	0.194
2009-01-06	2009	1	5.05	4.06	-	0.0470	0.0470	386076	386076	43298	43298	34159	34159	0.1156	0.1156	1111328	384467	20281	726861	63720	-21518	-20778	120470	42202	21424	141894	295532	295532	1188038	2008-11-30	0.1121	-	0.5289	2.39	0.2029
2008-10-22	2008	4	4.04	3.48	0.06	0.0366	0.1603	364534	1377931	38286	134627	25109	110065	0.0853	0.3718	1109545	422756	19741	686789	90915	-65826	-69425	164806	25089	-44336	120470	294448	296001	1113013	2008-08-31	0.105	10.1123	0.6156	2.27	0.3494
2008-07-02	2008	3	4.2	3.52	0.05	0.0401	0.1307	356139	1013397	30008	96341	26093	84956	0.0874	0.2846	1038667	388721	19779	649946	86525	-38709	-88185	164397	47816	-40369	124028	298678	298523	1254447	2008-05-31	0.0843	-	0.5981	2.11	0.1656
2008-04-03	2008	2	5.2	3.94	-	0.0459	0.0917	320775	657258	31773	66333	29480	58863	0.0990	0.1966	1017034	375016	20639	642018	64039	-22540	-59278	164397	41499	-17779	146618	297897	299450	1185630	2008-02-29	0.0991	-	0.5841	2.09	0.1071
2008-01-03	2008	1	6.55	3.88	-	0.0455	0.0455	336483	336483	34560	34560	29383	29383	0.0981	0.0981	1027902	382035	21814	645867	25388	-11460	-40763	164397	13928	-26835	137562	299496	299496	1752051	2007-11-30	0.1027	-	0.5915	2.08	0.1381
2007-10-19	2007	4	6.6	5.25	0.06	0.0210	0.1397	307563	1228778	31253	118644	13445	89560	0.0447	0.3113	1053628	412649	21447	640979	108110	-121054	118486	58855	-12944	105542	164397	300993	287652	2122000	2007-08-31	0.1016	23.6936	0.6438	2.06	0.5984
2007-07-04	2007	3	N/A	N/A	0.04	0.0429	0.1262	301563	921215	29469	87391	25902	76115	0.0861	0.2685	1034466	431279	17851	603187	63201	-92043	139262	58757	-28842	110420	169177	300799	283510	2601911	2007-05-31	0.0977	-	0.715	1.95	0.1304
2007-04-04	2007	2	N/A	N/A	-	0.0445	0.0881	311368	619652	29067	57922	25368	50213	0.0911	0.1827	1011920	442146	2220	569774	48631	-45330	220130	58757	3301	223431	282188	278479	274871	2464539	2007-02-28	0.0934	-	0.776	2.04	0.1271

year	qrt	Goodwill on consolidation (A-0)	Investment in associated companies (A-0)	Other investments (A-0)	Prepaid lease payments (A-0)	Property, plant and equipment (A-0)	Cash and cash equivalents (A-1)	Current tax assets (A-1)	Inventories (A-1)	Other receivables, deposits and prepayments (A-1)	Trade receivables (A-1)	Deferred tax liabilities (L-0)	Loans & borrowings (L-0)	Current tax liabilities (L-1)	Dividend payable (L-1)	Loans & borrowings (L-1)	Payables and accruals (L-1)	Trade and other payables (L-1)	Minority interest (M-1)
2010	3	22457	3882	145	13727	565588	283845	-	168727	37579	245933	42356	3259	28466	-	7596	103979	116240	23220
2010	2	22457	4063	-	14215	563236	277696	-	169780	21577	215401	39671	3618	31366	45091	4288	81909	130621	22594
2010	1	20113	8959	12853	14020	562722	237059	-	127613	18171	195882	36427	3792	21518	-	11253	81489	131459	22663
2009	4	20113	9366	12853	14200	564380	185848	-	119053	8333	198263	33413	8960	14721	20781	11573	104554	92430	21464
2009	3	22378	9269	145	14786	574450	173151	-	120909	12875	158683	36527	31573	5568	-	58455	55505	97889	23229
2009	2	22129	9888	145	14794	579234	183062	-	127801	10899	137951	34799	56448	6051	17668	87065	56531	76638	22768
2009	1	20113	10199	145	12035	572836	142287	-	137222	14185	202306	30047	81026	6676	-	99223	62323	105172	20281
2008	4	20113	10037	145	11928	559437	121545	-	157766	14378	214196	30047	86625	3016	14722	100362	74775	113209	19741
2008	3	21078	9435	145	11260	544046	124945	-	116756	16313	194689	32124	108789	5714	14722	58984	52112	116276	19779
2008	2	21078	8998	145	11291	541938	146618	-	126154	14097	146715	31459	119798	2694	15418	56832	58468	90347	20639
2008	1	21078	8866	145	9547	546644	137890	-	125079	15491	163162	31189	126034	1951	-	55332	59190	108339	21814
2007	4	21078	8737	145	9588	548035	165584	-	121256	10441	168764	26968	128467	619	12013	63726	76764	104092	21447
2007	3	24795	8459	145	11943	512615	170140	-	107391	29911	169067	33810	144309	3847	12010	63748	67380	106175	17851
2007	2	21078	-	-	4557	442410	282188	1621	92020	18039	150007	31471	172604	14446	-	76322	58790	88513	2220

year	qrt	Revenue	Income tax expense	Finance/interest costs	Other income/expenses	Administrative/Operating expenses	Minority interest	Share of profit/ (loss) of associates
2010	3	555851	-17944	-101	3142	-475736	-896	168
2010	2	509895	-21627	-76	2658	-417630	-1732	-962
2010	1	472300	-20095	-398	2106	-387191	-1340	-174
2009	4	427346	-23996	-1471	2340	-349117	1829	-100
2009	3	371965	-11959	-2013	1276	-316655	-212	-235
2009	2	346522	-8712	-2327	1428	-300225	-196	-493
2009	1	386076	-8783	-2718	1540	-341444	-356	-156
2008	4	364534	-13378	-2494	2439	-326448	201	255
2008	3	356139	-4969	-2714	2753	-326369	1054	199
2008	2	320775	-3404	-2419	1685	-288526	1111	258
2008	1	336483	-4773	-2524	2096	-301692	-404	197
2007	4	307563	-18703	-3142	4707	-277770	895	-105
2007	3	301563	-3843	-3145	2004	-270939	276	-14
2007	2	311368	-3693	-3562	1252	-279991	-6	-

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