EPF no longer substantial shareholder in Top Glove
Nigel Ng Vern Lim | 27 Mar 2015 00:30
The EPF ceases to be a substantial shareholder in Top Glove Corp after it disposes 12.19 million shares in the company on March 24
The Employees Provident Fund (EPF) ceased to be a substantial shareholder in Top Glove Corp Bhd when it disposed 12.19 million shares in the company on March 24.
The pensions fund had been gradually disposing of its stake in the world’s biggest glove manufacturer since March 10, reducing its a stake from 6.7% or 41 million shares on March 10 to 4.3% or 26.9 million shares on March 24.
For its second quarter ended Feb 28, Top Glove’s revenue increased 4.37% to RM572.2 mil compared to RM548.3 mil the previous corresponding period. The improved revenue was mainly attributed to higher sales volume stemming from more natural rubber and nitrile glove sales.
During the same period, the company’s net profit also rose to RM56.3 mil compared to RM42.2 mil the previous corresponding quarter.
Recently, with the improved results, RHB Research upgraded Top Glove to a hold from a sell call.
“Top Glove’s H1FY15 results came in stronger than our/consensus estimates at 56%/53% respectively. We upgrade our recommendation to neutral with a revised target price of RM5.47 (from RM4.04), 5% upside, based on 15 times CY16 P/E. The better results were led by higher overall sales volume, improved operating efficiency, a stronger US dollar and lower raw material prices,” said RHB.
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