Top Glove Q1 preview: What should investors know?
Here are three things to note ahead of Malaysian glove manufacturer’s Q1 financial report.
Malaysian glove manufacturer Top Glove Corporation will be releasing its results for the first quarter of fiscal 2021 on Wednesday (09 December 2020).
Below, we highlight three key stock fundamentals that investors should consider ahead of the company’s earnings report.
Top Glove stock is down 30% since October 2020
Top Glove’s shares have plunged roughly 30% since mid-October 2020, amidst reports that thousands of factory workers have tested positive for Covid-19.
The Malaysian government then ordered 28 of Top Glove’s factories in Klang, Selangor, to be shut down in stages. The closures production halt has put a strain on order deliveries
As at 12:10 SGT on Tuesday (08 December 2020), Top Glove’s Bursa Malaysia (KLSE: TOPGLOV) stock - tracked by IG's Malaysia 30 index - is trading at 6.89 ringgit (S$2.26) per share.
Meanwhile, the company’s Singapore Exchange shares (SGX: BVA) are trading at S$2.26 each.
Earlier this month, CIMB’s equity research team reiterated an ‘add’ call on Top Glove’s Malaysian stock with a target price of 10 ringgit (S$3.28).
Public Bank rated it a ‘buy’ alongside a 12-month target price of 9.70 ringgit (S$3.19).
Top Glove posted record earnings in 2020
Top Glove saw sales revenue hit 3.11 billion Malaysian ringgit (S$1.02 billion) for the quarter ended 31 August 2020, representing a year-on-year increase of 162%.
The improved performance came on the back of higher global demand for gloves during the Covid-19 pandemic, the company had stated in a press release.
Profit After Tax came in at 1.33 billion ringgit (S$439 million), 18 times higher than that registered in the corresponding period a year ago.
For the full 2020 financial year, sales revenue amounted to a new record of 7.24 billion ringgit (S$2.39 billion), up 51% from that of FY2019, while Profit After Tax also soared to 1.9 billion ringgit (S$626 million), a spike of 417% from the previous financial year.
Top Glove raised 2020 dividend sum by 373%
In light of the strong performance in Q4, the company’s board then recommended a final dividend of 0.085 ringgit (S$0.28) per share. This equated to a cumulative payout of approximately 691.8 million ringgit (S$228 million) for the fourth quarter.
Total dividends per share across the whole of fiscal 2020 came to 0.118 ringgit per share (S$0.039), which amounted to a total payout of approximately 961.2 million ringgit (S$317 million) for the full year.
The FY2020 dividend amount represented a 373% increase from FY2019’s sum, which equated to a net profit payout ratio of 51%.
Ready to trade Top Glove?
Are you feeling bullish or bearish on Top Glove?
Either way you can buy (long) or sell (short) the asset using derivatives like CFDs offered on IG's industry-leading trading platform in a few easy steps:
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
