KLCI Stock - TOPGLOV / 7113 - 2012 Quarter 1

TOP GLOVE CORPORATION BERHAD

Company Description

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.

Company Info

Listing Date	2002-05-16
Market Capital (Capital Size)	3,099,141,220 (Large)
Par Value	RM 0.50
Board	Main
Sector	Industrial Products
Major Industry	Gloves
Sub Industry	Gloves Manufacturing & Sales
Website	http://www.topglove.com.my/

My Analysis

Forecast P/E now	(5.01-0.11)/0.2286 = 21.43 (High)
Target Price	4.57+0.11 = 4.68 (PE 20.0, EPS 0.2286, DPS 0.11)
Decision	Not interested unless latex price decrease or USD strengthen again RM
Comment	Revenue increased 2.4% and was third consecutive quarter increasing and also higher than preceding year corresponding quarter 12.9%, eps increased 21.8% and was third consecutive quarter increasing but still lower than preceding year corresponding quarter 12.7%, cash generated from operating more than enough to cover all expenses, slightly lower liquidity ratio at high level now, higher gearing ratio from low to below moderate level now, all accounting ratio are good, higher inventory can indicate Group products demand still good, affecting by weakeaning of USD against RM and increasing of latex price
First Support Price	4.1
Second Support Price	3.9
Risk Rating	MODERATE

Research House

Kenanga Target Price	3.97 (2011-06-17)
Citi Target Price	5.95 (2011-06-20)
Affin Target Price	4.62 (2011-09-08)
AMMB Target Price	3.1 (2011-09-29)
CIMB Target Price	3.29 (2011-10-19)
TA Target Price	5 (2011-12-16)
BIMB Target Price	5.26 (2011-12-19)
Maybank Target Price	3.4 (2011-12-19)
RHB Target Price	3.63 (2011-12-19)
HwangDBS Target Price	4.05 (2011-12-20)
MIDF Target Price	3.61 (2012-01-11)
OSK Target Price	6 (2012-01-11)

Accounting Ratio

Return on Equity	9.45%
Dividend Yield	2.20%
Profit Margin	7.50%
Tax Rate	21.97%
Asset Turnover	1.4286
Net Asset Value Per Share	1.87
Net Tangible Asset per share	1.84
Price/Net Tangible Asset Per Share	2.41
Cash Per Share	0.34
Liquidity Current Ratio	3.0735
Liquidity Quick Ratio	1.8195
Liquidity Cash Ratio	0.8644
Gearing Debt to Equity Ratio	0.256
Gearing Debt to Asset Ratio	0.2003
Working capital per thousand Ringgit sale	24.2%
Days to sell the inventory	57
Days to collect the receivables	37
Days to pay the payables	35

Technical Analysis

SMA 20	5.105 (Downtrend 1 day)
SMA 50	4.819 (Uptrend)
SMA 100	4.479 (Uptrend)
SMA 200	4.799 (Same)
MACD	0.166715 (Downtrend 12 days)
MACD Histogram	-0.013706 (Downtrend 4 days)

My notes based on 2012 Quarter 1 report (number in '000):-
- Lower pbt than FY11Q1 was primarily attributed to the continuously volatile raw material prices and oversupply situation in the industry. The average latex price rose by 16.0% (from RM7.19/kg to RM8.34/kg) whilst the average nitrile price increased by 46.4% (from USD1.40/kg to USD2.05/kg). The PBT was also impacted by recognition of net loss in foreign exchange amounting to RM13.3 million compared with a net gain of RM4.7 million

- Higher pbt than FY11Q4 primarily attributed to a decline in latex prices which fell by 9.2% (from RM9.19/kg to RM8.34/kg) and a stronger average US Dollar against the Ringgit which strengthened by 4.0% (from RM3.00 to RM3.12)

- Estimate next 4Q eps after 2012 Q1 result announced = (0.0508*1.2)+(0.0508*1.1*3) = 0.2286, estimate PE on current price 5.01 = 21.43(DPS 0.11)
- Estimate next 4Q eps after 2011 Q4 result announced = (0.0417*1.4)+(0.0417*1.4*1.1*3) = 0.251, estimate highest/lowest PE = 18.49/15.5 (DPS 0.11)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.047*4*1.2 = 0.2256, estimate highest/lowest PE = 25.62/16.62 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.08+0.088+0.0968+0.1065 = 0.3713, estimate highest/lowest PE = 15.19/13.74 (DPS 0.23)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.2122*4 = 0.8488*1.1 = 0.9337(10% adjustment), estimate highest/lowest PE = 15.5/10.36 (DPS 0.29)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.235*4 = 0.94, estimate highest/lowest PE = 14.68/11.66 (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)

TONGHER latest news (English)

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Financial Quarter Summary

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	m_cap	date	prof_m	vat	asset_t	pe	navps	ntaps	p/ntaps	cps	l_cur	l_qui	l_cash	g_de	g_da	avg_w	inv_d	rec_d	pay_d
2011-12-16	2012	1	N/A	N/A	-	2.65%	2.65%	554843	554843	41591	41591	31432	31432	0.0508	0.0508	1482067	296869	25432	1185198	92230	27091	610	148760	65139	64529	213289	618900	618900	2747916	2011-11-30	7.50%	21.97%	1.4286	-	1.87	1.84	2.41	0.34	3.0735	1.8195	0.8644	0.256	0.2003	24.2%	57	37	35
2011-10-11	2011	4	4.75	4.0	0.06	2.28%	9.87%	541836	2053916	35005	145390	26086	113143	0.0417	0.1810	1423029	276656	24570	1146373	180472	207407	87404	263099	26935	114339	148760	625281	625186	2544893	2011-08-31	6.46%	23.23%	1.4433	22.4893	1.79	1.76	2.31	0.24	3.1185	1.8804	0.6484	0.2466	0.1944	23.7%	54	47	37
2011-06-17	2011	3	5.88	3.85	0.05	2.27%	7.73%	535363	1512080	34505	110385	25597	87057	0.0409	0.1392	1376381	250679	23804	1125702	51905	122599	56329	262930	70694	127023	135907	625372	625271	3289456	2011-05-31	6.45%	24.53%	1.4919	-	1.76	1.73	3.04	0.22	3.3249	2.083	0.6385	0.2275	0.1821	24.1%	50	51	34
2011-03-16	2011	2	5.42	4.95	-	2.25%	5.45%	485208	976717	31475	75880	25410	61460	0.0406	0.0983	1375917	247550	23238	1128367	14547	89631	55823	262930	75084	130907	132023	625366	625413	3301932	2011-02-28	6.49%	17.59%	1.5073	-	1.77	1.73	3.05	0.21	3.4479	2.16	0.6291	0.224	0.1799	24.8%	52	53	40
2010-12-15	2011	1	5.52	4.68	-	3.11%	3.11%	491509	491509	44405	44405	36050	36050	0.0582	0.0582	1401201	241080	24467	1160121	73081	71944	2608	262930	1137	3745	266675	619045	619045	3373795	2010-11-30	9.03%	18.18%	1.4977	-	1.83	1.8	3.03	0.43	3.6737	2.5429	1.3058	0.2123	0.1721	26.0%	46	40	40
2010-10-06	2010	4	5.87	5.33	0.09	4.04%	21.97%	541386	2079432	42166	306018	45063	245281	0.0727	0.3969	1372010	255644	23864	1116366	217783	40442	94790	180379	177341	82551	262930	619768	617915	3526479	2010-08-31	7.79%	-	1.5156	14.3343	1.77	1.74	3.27	0.42	3.4092	2.4559	1.2047	0.234	0.1863	25.3%	43	47	44
2010-06-16	2010	3	14.54	4.98	0.14	6.20%	19.25%	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	14.99%	21.54%	1.4647	-	3.36	3.29	3.91	0.93	2.8722	2.2138	1.1076	0.2969	0.225	24.4%	38	53	49
2010-03-17	2010	2	14.02	11.18	-	7.41%	14.26%	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	18.41%	23.04%	1.3827	-	3.11	3.03	4.15	0.93	2.3338	1.7549	0.9469	0.3622	0.2612	22.0%	42	49	53
2009-12-16	2010	1	12.64	9.55	-	7.15%	7.15%	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	18.34%	23.19%	1.3514	-	2.96	2.89	3.29	0.79	2.3552	1.8359	0.9648	0.3217	0.2388	20.6%	34	48	57
2009-10-08	2009	4	9.56	8.01	0.09	6.72%	20.00%	427346	1531909	78998	221539	56831	169154	0.1910	0.5712	1132409	286432	21464	845977	321363	66284	186403	117172	255079	68676	185848	297467	296140	2424356	2009-08-31	18.49%	30.38%	1.3528	14.2683	2.78	2.72	3.0	0.62	2.0958	1.608	0.7615	0.3474	0.2529	17.5%	33	49	55
2009-06-23	2009	3	8.15	6.3	0.07	5.26%	14.02%	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	14.61%	22.01%	1.352	-	2.63	2.55	2.55	0.58	2.1416	1.5855	0.7964	0.367	0.2628	16.9%	34	43	44
2009-04-07	2009	2	6.6	4.98	-	4.80%	9.35%	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	12.96%	19.40%	1.3383	-	2.47	2.39	2.08	0.62	1.8844	1.3606	0.7504	0.4605	0.3087	14.8%	36	37	38
2009-01-06	2009	1	5.05	4.06	-	4.70%	4.70%	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	11.21%	20.29%	1.2845	-	2.39	2.32	1.73	0.48	1.8142	1.3123	0.5204	0.5441	0.346	15.6%	39	55	48
2008-10-22	2008	4	4.04	3.48	0.06	3.66%	16.03%	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	10.50%	34.94%	1.2419	10.1657	2.25	2.19	1.73	0.41	1.6593	1.1439	0.3971	0.6338	0.381	14.6%	46	61	55
2008-07-02	2008	3	4.2	3.52	0.05	4.01%	13.07%	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	8.43%	16.56%	1.2718	-	2.11	2.04	2.06	0.42	1.8268	1.3557	0.5042	0.6169	0.3742	15.5%	36	58	51
2008-04-03	2008	2	5.2	3.94	-	4.59%	9.17%	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	9.91%	10.71%	1.2452	-	2.08	2.0	1.99	0.49	1.9377	1.3739	0.6552	0.6035	0.3687	16.6%	40	46	48
2008-01-03	2008	1	6.55	3.88	-	4.55%	4.55%	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	10.27%	13.81%	1.2229	-	2.08	2.01	2.91	0.46	1.9644	1.408	0.6134	0.6122	0.3717	17.2%	40	52	54
2007-10-19	2007	4	6.6	5.25	0.06	2.10%	13.97%	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	10.16%	59.84%	0.8736	22.6434	2.15	2.08	3.39	0.55	1.8119	1.3405	0.6438	0.6661	0.3916	22.7%	53	71	80
2007-07-04	2007	3	N/A	N/A	0.04	4.29%	12.62%	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	9.77%	13.04%	0.5925	-	2.06	1.98	4.37	0.57	1.8822	1.458	0.6721	0.7368	0.4169	36.4%	71	118	115
2007-04-04	2007	2	N/A	N/A	-	4.45%	8.81%	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	9.34%	12.71%	N/A	-	2.06	1.99	4.45	1.01	2.2845	1.898	1.1853	0.779	0.4369	N/A	-	N/A	N/A

Financial Quarter Balance Sheet

year	qrt	Goodwill on consolidation (A-0)	Investment in associated companies (A-0)	Investment securities (A-0)	Leasehold land use rights (A-0)	Property, plant and equipment (A-0)	Cash and cash equivalents (A-1)	Current tax assets (A-1)	Derivative assets (A-1)	Inventories (A-1)	Investment securities (A-1)	Other assets (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)	Derivative liabilities (L-1)	Dividend payable (L-1)	Loans & borrowings (L-1)	Other liabilities (L-1)	Payables and accruals (L-1)	Trade and other payables (L-1)	Minority interest (M-1)
2012	1	20113	6322	146	18605	678532	213289	14679	-	202003	107413	4015	-	216950	47134	2997	-	21903	-	156	33458	-	191221	25432
2011	4	20113	7039	146	19608	660692	148760	13228	2954	175532	108512	4316	-	262129	44393	2851	-	-	-	157	34644	-	194611	24570
2011	3	20113	5745	145	2969	639679	135907	19494	352	181689	82654	-	34344	253290	36819	1000	-	-	30923	825	-	88018	93094	23804
2011	2	20113	5428	145	3039	623636	132023	18768	511	192441	77834	-	47186	254793	36404	1292	-	-	-	1112	-	105945	102797	23238
2011	1	20113	5234	145	3591	621880	266675	23173	-	150671	80270	-	29173	200276	35571	1292	-	262	-	2679	-	90286	110990	24467
2010	4	20113	5056	145	3025	599583	262930	5473	-	167511	40557	-	20349	247268	34360	3025	-	-	-	541	-	112602	105116	23864
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

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Finance/interest costs	Other income	Administrative/Operating expenses	Minority interest	Share of profit/ (loss) of associates
2012	1	554843	9136	28	4052	517234	1023	42
2011	4	541836	8131	77	8048	515069	788	267
2011	3	535363	8464	77	3919	504914	444	214
2011	2	485208	5535	51	3560	457573	530	331
2011	1	491509	8072	37	3089	450261	283	105
2010	4	541386	4069	63	6987	506165	1172	21
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	-

Financial Quarter Segments Revenue

year	qrt	Others	Malaysia	China	Thailand
2012	1	26471	456531	13912	57929
2011	4	24004	449388	17223	51221
2011	3	22493	451254	14123	47493
2011	2	18406	405332	15430	46040
2011	1	24859	401295	14706	50649
2010	4	28951	432574	22351	57510
2010	3	30050	443881	22997	58923
2010	2	25123	415310	22254	47208
2010	1	21874	387790	19607	43029
2009	4	22631	343337	24726	36652
2009	3	17464	308570	15284	30647
2009	2	22281	265833	29658	28750
2009	1	19195	301718	34354	30809
2008	4	18445	271134	37256	33964
2008	3	16173	289214	22404	28348
2008	2	15964	255141	17657	32013
2008	1	18757	253142	19711	44873
2007	4	21455	233178	10683	42411
2007	3	15565	246435	6885	32678
2007	2	12059	242289	11614	45406

Financial Quarter Segments Profit

year	qrt	Others	Malaysia	China	Thailand
2012	1	976	27376	64	13373
2011	4	673	26338	1524	6280
2011	3	965	29759	701	4345
2011	2	349	26274	599	5171
2011	1	430	41311	3046	5642
2010	4	191	37676	3263	7604
2010	3	589	79387	3966	8425
2010	2	459	84031	398	10831
2010	1	293	75867	447	10608
2009	4	459	72594	1321	8195
2009	3	80	43287	2978	10241
2009	2	670	37361	2399	7295
2009	1	625	35713	2572	7262
2008	4	500	31713	2414	6864
2008	3	630	28149	1476	2268
2008	2	518	31254	1482	680
2008	1	479	34037	133	2238
2007	4	863	33216	4388	3017
2007	3	413	30254	1669	850
2007	2	594	34391	1890	148

Short form reference
a_date = announcement date, yr = financial year end, qrt = quarter
h_price = stock highest price during the quarter, l_price = stock lowest price during the quarter
div = dividend recommend or declare in the quarter, roe = return on equity
c_roe = cumulative of return on equity during the financial year
rev = revenue in the current quarter, c_rev = cumulative of revenue during the financial year
pbt = profit before tax in the current quarter, c_pbt = cumulative of profit before tax during the financial year
eps = earnings per share in the current quarter, c_eps = cumulative of earnings per share during the financial year
asset = total asset, liab = total liability, mino = minority interest, equi = total equity
cfo = net cash flow from operating activities, cfi = net cash flow from investing activities
cff = net cash flow from financing activities, cash = cash and cash equivalents as at beginning of financial year
final = cash and cash equivalents as at current financial period ended
share = diluted/basic weighted average number of ordinary shares
c_share = cumulative of diluted/basic weighted average number of ordinary shares during the financial year
m_cap = market capital at announcement date of quarterly report, date = current financial period ended date
prof_m = profit margin, vat = income tax rate, pe = price earning per share ratio of recent four quarter
navps = net asset value per share, ntaps = net tangible asset per share, cps = cash per share
l_cur = liquidity current ratio, l_qui = liquidity quick ratio, l_cash = liquidity cash ratio
g_de = gearing debt to equity ratio, g_da = gearing debt to assets ratio
avg_w = working capital per thousand Ringgit sale
inv_d = days to sell the inventory, rec_d = days to collect the receivables
pay_d = days to pay the payables



6-Months Historical Chart from shareinvestor.com

CURRENT

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●CHANGES IN SHAREHOLDING
●ANNUAL REPORTS

HISTORICAL

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●CHANGES IN SHAREHOLDING

ARCHIVES

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●CHANGES IN SHAREHOLDING

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1-Years Historical Chart from shareinvestor.com

5-Years Historical Chart from shareinvestor.com