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This article first appeared in The Edge Financial Daily on May 31, 2018

Top Glove Corp Bhd (+ve)
SHARES in leading disposable rubber gloves manufacturer Top Glove Corp Bhd (fundamental: 2.1/3, valuation: 1.1/3) triggered our momentum algorithm yesterday for the first time this year.

The stock closed four sen or 0.39% higher at RM10.24, bringing a market capitalisation of RM13.1 billion. A total of 13.9 million shares were traded, almost four times its 200-day average volume of 3.5 million shares.

On May 14, Top Glove announced it had completed its acquisition of an 85% equity interest in Duramedical Sdn Bhd for RM2.85 million, thus paving the way for the glove maker’s diversification into medical-related products.

For its second financial quarter ended Feb 28, 2018, its net profit jumped 32.2% to RM109 million from RM83.05 million a year ago, on higher demand for natural rubber gloves. Quarterly revenue stood at RM958.4 million, an increase of 12.6% year-on-year.

At the current share price, the group is trading at 6.9 times its book value.

 

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