Firmer foothold in latex. Top Glove is acquiring a small latex glove
player for MYR24m (or 1.5x historical P/BV). In view of the minimum wage
hike and imminent gas hikes, we expect more small/inefficient players
to phase out eventually. This will further consolidate Top Glove's
foothold as the market leader for the latex segment and giving it
greater control over the ASPs of latex gloves. We maintain our
forecasts, BUY rating and TP of MYR6.00 (16x 2013 PER).
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Source: Maybank Research - 18 July 2012
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