KUALA LUMPUR (June 8): AffinHwang Capital Research has maintained its “Buy” rating on Top Glove Corp Bhd at RM5.50 with a higher target price of RM6.50 (from RM5.80) and said Top Glove is scheduled to release its 3Q FY17 results on 16 June.

In a note today, the research house said it expects earnings to rebound sharply year-on-year albeit off a low base, and an improvement in average selling price (ASP), driving margin expansion.

“Despite the absence of capacity expansion, topline should remain fairly solid given higher ASPs.

“We expect 3Q FY17 earnings to range from RM80 million-RM85 million.

“After rolling over our valuation to CY18E, we raise our target price to RM6.50. Buy,” it said.