'A great decline for a large company in Malaysia.'
In the wake of the decline in Covid-19 cases worldwide, the stock of local gloves company Top Glove Corp Bhd has also suffered a decline.
During yesterday's closing session, the Top Glove shares fell RM1.25 before opening a little high today at RM1.27.
But by the afternoon trading session, the Top Glove stock was seen declining 2.38% at RM1.23.
In addition to the situation, the company's market capitalization also dropped to RM9.85 billion compared to yesterday's closing at RM10.09 billion.
As a result, Hong Leong Investment Bank Research (HLIB) maintained a 'sell' rating of the company with a price target (TP) at RM1.12 compared to RM1.33.
Review HLIB, the Top Glove's operating environment remains challenging due to the inaccuracies of demand for a low consumption rate of about 60% and the average sale price (ASP) decreases.
In addition, the firm also reduced the 20222-2024 (FY222-24) financial year forecast for 4-42%.
It also confirmed the forecast of market analysts on further decline in the rubber gloves sector after most quarterly reports of the companies were below expectations.
For the record, the net profit in the Top Glove quarterly report fell at RM87.55 million during the 2nd quarter ended February 28, 2022 (2QFY22) compared to RM2.87 billion last year.
In addition, the Top Glove's cumulative net profit for the first half of 2022 (1hfy22) was seen falling RM273.27 million compared to RM5.23 billion a year earlier.
