KUALA LUMPUR (March 14): AffinHwang Capital Research has maintained its “Buy” rating on Top Glove Corp Bhd with a lower target price of RM5.80 (from RM6) and said it expects Top Glove to report a sequentially stronger bottom line.

In a note today, the research house said Top Glove is scheduled to release its 2QFY17 results on March 16.

“In tandem with the overall improved sector outlook, we are expecting a sequentially stronger bottom line, mostly underpinned by higher average selling prices.

“Despite hefty increases in raw material prices, we believe Top Glove could pass through bulk of the increases, although the time lag factor could distort earnings delivery and an underlying margin recovery in the near term. Maintain Buy,” it said.