Published: Wednesday December 16, 2009 MYT 3:45:00 PM by http://biz.thestar.com.my/
Top Glove pre-tax profit up 100% in first quarter
KUALA LUMPUR: Top Glove Corporation Bhd has recorded a 100 per cent increase in pre-tax profit for its first quarter ended Nov 30, 2009, to RM86.6 million from RM43.3 million in same quarter last year.
Revenue of the world's largest rubber glove manufacturer rose 22 per cent to RM472.3 million from RM386.1 million previously.
Chairman Tan Sri Lim Wee-Chai attributed the continuing profit growth to aggressive marketing strategies and improvement in product productivity and quality.
"Top Glove is efficient and has adapted well to the chalenging business environment, resulting from cost-saving measures implemented at all factories," he said in a statement on Wednesday.
Lim said the group was continuing to strengthen its balance sheet and working capital position, currently in net cash position of RM222 million, with RM237.1 million cash in bank as at Nov 30, 2009.
"In view of the strong profit growth for the first quarter, the group is optimistic of its future outlook despite ongoing global economic challenges," he said.
"With a diversified range of good quality products offered to a huge customer base spread over more than 180 countries, the group is confident of continuous growth and good profitable performance in the current financial year," he added. - Bernama
Daniel's Recommendation:
Fair Value: RM 9.97
Current Price: RM 9.94
Recommendation: HOLD
I've raised the current Fair Value for this stock to RM 9.97 from RM 8.49 previously. As the current share price is very close to my Fair Value, I give it a Hold rating.
Refer to previous write-up here for more info on this company.
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