Latest news with #AmInvestmentBank
Free Malaysia Today
29-07-2025
- Business
- Free Malaysia Today
Top Glove slapped with downgrades after poor Q3 results
AmInvestment Bank flagged Top Glove's 'big earnings miss', slashing its target price to 50 sen from 68 sen previously. (Bernama pic) PETALING JAYA : Top Glove Corp Bhd, the world's largest glove manufacturer, has been hit with downgrades by research houses after posting underwhelming financial results for its third quarter ended May 31 (Q3 FY2025). Net profit for the first nine months of its financial year was only about a third of the consensus's full-year forecast, prompting cuts to price targets and estimates. Its Q3 net profit fell 31% to RM34.74 million from RM50.67 million a year earlier as a surge in expenses nearly wiped out its revenue growth. The quarterly profit was also inflated by gains on disposal of property, plant and equipment totalling RM29.72 million. Revenue for the quarter was up 30% to RM830.25 million from RM636.87 million a year ago. For the nine-month period (M9 FY2025), Top Glove posted a net profit of RM70.5 million versus a net loss of RM58.24 million last year. There was, however, a bright spot as revenue surged 55% to RM2.6 billion from RM1.68 billion in the same period last year. CLSA downgraded Top Glove to 'hold' and slashed its target price (TP) to 70 sen from RM1.05 previously, citing ongoing pricing competition in non-US markets. The counter ended down one sen or 1.4% at 71 sen today, giving the group a market capitalisation of RM5.83 billion. Year to date, it had slumped 45%. The downgrade follows Top Glove's M9 FY2025 core profit of RM39 million, which 'fell below expectations' primarily due to lower-than-expected average selling prices (ASP) despite easing input costs and gradual recovery in US volumes. The research firm noted that earnings recovery would likely be hampered by continued pricing competition, compounded by the upcoming supply of Chinese gloves from Asean countries. CLSA also cut its FY2025-27 earnings per share estimates by 5%-25%. It believes the group's earnings turnaround has already been priced in, limiting potential upside from current levels. 'Big earnings miss' AmInvestment Bank (AmInvest) maintained its 'sell' call and cut its TP to 50 sen from 68 sen previously on Top Glove's 'big earnings miss'. 'While Top Glove delivered an earnings turnaround in M9 FY2025, it still fell short of expectations as US customers adopted a 'wait and see' approach due to tariff uncertainties in Q3 FY2025. Amid intensifying competition, US tariffs on Chinese gloves offer limited relief,' it said in a note today. It also highlighted the dim prospects in Europe despite the European Union's (EU) recent tender restrictions on China. 'Management indicated that EU's exclusion of Chinese glovemakers from public tenders above 5 million euros has minimal impact, as the value of gloves tenders is typically lower than the threshold,' it added. AmInvest noted that volume in Europe, which accounts for 37% of Top Glove's sales, continued to decline in Q3 as Chinese players redirected their sales from the US market. Analysts have flagged dumping by Chinese glove makers in non-US markets to weather the Trump tariffs. North America accounts for about 26% of Top Glove's sales. Maybank Investment Bank, which kept its 'sell' call on the stock, said it remains concerned on intensifying competition, particularly from capacity in China targeting non-US markets, and from China players' overseas plants focussing on the US market. Executive chairman Lim Wee Chai, 67, founded Top Glove with his wife Tong Siew Bee in 1991 and within a decade transformed it into one of the world's largest producers of rubber gloves. Apart from Malaysia, it also has manufacturing operations in Thailand, and Vietnam, with its 51 factories having a total production capacity of 95 billion gloves annually. It currently exports to 195 countries worldwide. Lim has a net worth of US$1 billion (RM4.2 billion), placing him at the No 21 spot on Forbes Malaysia's 50 Richest list.
Borneo Post
29-07-2025
- Business
- Borneo Post
Possible delay in EUDR, but major players prepared
The lawmakers have proposed to delay the EUDR, which is scheduled to take effect on 30 December 2025. — AFP photo KUCHING (July 29): In July 2025, the European Parliament driven mainly by right-wing party members, backed a motion which objects to the European Commission's deforestation risk country list for European Union Deforestation Regulation (EUDR). The lawmakers have proposed to delay the EUDR, which is scheduled to take effect on 30 December 2025. In addition, Austria and France have proposed a fourth risk classification, negligible risk, to add on to existing classifications which are low risk, standard risk and high risk. Malaysia has been classified as standard risk. In spite of the European Parliamentís proposals, analysts with AmInvestment Bank Bhd (AmInvestment Bank) noted that the European Commission has no obligation to act on the vote. 'The above development arose as the country risk classification has drawn the ire of some lawmakers. This is because it is not based on updated information and certain countries, which have significant deforestation activities, were classified as standard risk instead of high risk,' it said in a note yesterday. The last structural Food and Agricultural Organisation of the United Nations (UN FAO) data update from agricultural census took place in April 2025, while the next dataset will be released in March 2026. This can be used to review the country risk classification for 2026. Recall that Malaysia said that EUís classification of standard risk was based on a 2020 UN FAO report, which is outdated. To note, Mondelez wants EUDR to be delayed by a year but not others. Meanwhile, Nestle, Danone and Ferrero would like EUDR to be implemented according to the schedule. An official with Mondelez said that more than a million farmers in Ivory Coast produce cocoa but less than 20 per cent have EUDR-mandated traceability cards. The group also said that the cocoa sector is under pressure due to soaring prices and declining production. On the other hand, Nestle said that a delay in the EUDR would worsen legal uncertainties, increase operational costs and create confusion. A delay would also send a contradictory message to consumers as demand for transparency and sustainability are reaching unprecedented levels. 'We believe that the major palm producers are prepared for EUDR,' AmInvestment Bank noted. 'As mentioned in a previous report, the large palm producers in Malaysia and Indonesia such as SD Guthrie and Golden Agri Resources are prepared for EUDR. 'Companies like SD Guthrie and KL Kepong have been sending trial shipments of EUDR-compliant palm products since last year. As for smallholders, who are not compliant, we believe that they can sell their products to other markets such as Turkey or Middle East instead of the EU.' deforestation European Union Deforestation Regulation united nations
The Star
09-06-2025
- Business
- The Star
Yinson fixes DRP share price
AmInvestment Bank said the DRP shares would be listed on the Main Market of Bursa Malaysia by end-June 2025. PETALING JAYA: Oil and gas services firm Yinson Holdings Bhd has fixed the company's new share price issued under the dividend reinvestment plan (DRP) in relation to the final dividend at RM2.29 per DRP share. AmInvestment Bank Bhd said in a filing with the stock exchange on behalf of the company's board of directors that the issue price represented a premium of approximately 19.3% to the ex-dividend volume weighted average price (VWAP) of Yinson's share of RM1.92. The issue price was arrived at after taking into consideration the five-day VWAP of RM1.93 per share up to and including May 13, 2025, being the last trading day prior to the price fixing date; and a dividend adjustment of one sen to the five-day VWAP of its shares. The investment bank said the DRP shares would be listed on the Main Market of Bursa Malaysia by end-June 2025. In a separate filing, the company declared a final single-tier dividend of one sen per share for the financial year ended Jan 31, 2025.
