Top Glove's 3Q Core Loss May Narrow Sequentially

Top Glove may rise to around 0.40 if results are better than expected. Otherwise, it may reach around 0.375.

Top Glove's fiscal 3Q core loss may narrow sequentially on improving operating efficiency, better sales volume and higher average selling prices, RHB IB analyst Oong Chun Sung says in a note. He says the catalysts are expected to offset the recent 5%-6% increase in natural gas tariffs and higher raw material prices. The analyst tips 3Q core loss to narrow to between MYR40 million and MYR45 million versus 2Q's MYR66 million. RHB upgrades Top Glove's rating to buy from neutral on improving investor sentiment and raises target price to MYR1.32 from MYR0.83.