KUALA LUMPUR (July 10): Top Glove Corp Bhd shares rose 73 sen or 8% to become Bursa Malaysia's top gainer on bargain hunting and after the company said its business remains resilient, despite ongoing legal proceeding concerns.
At 12:30pm, Top Glove settled at RM9.86 with some 32 million shares traded. Affin Hwang Investment Bank Bhd wrote in a note today that it upgraded Top Glove shares to Buy from Hold, with an unchanged target price (TP) of RM12. Hong Leong Investment Bank Bhd said it maintained its Hold call for Top Glove shares with a lower TP at RM9.92, versus RM10.81 previously.
Yesterday, Top Glove shares dropped RM2.97 to close at RM9.13, after it said on Friday that the company and its wholly-owned subsidiary Top Care Sdn Bhd had taken legal action against Adventa Capital Pte Ltd, besides Low Chin Guan, Wong Chin Toh and ACPL Sdn Bhd.
On Friday, Top Glove said: "In the writ action, Top Glove and Top Care are claiming for a sum of not less than RM714,862,759 arising from a (alleged) conspiracy to defraud Top Care and Top Glove, and fraudulent misrepresentations made by Low Chin Guan and Wong Chin Toh which resulted in Top Glove and Top Care agreeing to enter into the share purchase agreement dated 12.1.2018 with Adventa Capital for Top Care’s purchase of the 270,850,119 shares in Aspion Sdn Bhd from Adventa Capital for a fixed amount of RM1.37 billion."
Yesterday, Top Glove reassured investors that its business operations remain resilient, despite the legal proceedings.
"Top Glove remains upbeat in terms of outlook. With the combined capabilities of Aspion, the group is confident of continued growth, going forward. It recognises there will always be challenges in business and is focused on taking immediate steps to address the issues. Top Glove will continue to uphold its business ethics of honesty, integrity and transparency and believes that as it continues to do the right thing and pursue its business priorities, it will be able to overcome these challenges and stay on course towards achieving its business goals," Top Glove said.