OSK anticipates that Top Glove's first quarter 2011 outlook will be affected by rising latex prices and the weakening of the US dollar and ringgit
Although financial year 2010 was within expectations, Top Glove Corp's (7113) fourth quarter of the same financial year was affected by unfavourable external factors such as rising latex prices and the weakening of the US dollar and ringgit.
"We anticipate that its first quarter 2011 outlook will not be much different as we think the latex prices and exchange rates will continue to be unfavourable," OSK said.
The research house said this will be offset by the stocking up of activities by its customers.
Top Glove's customers may potentially carry out restocking rather than risk a further hike in selling prices when the rubber trees experience the wintering season, thus causing lower latex production.
On a year-to-date comparison, both the financial year 2010 revenue and net profit were higher by 36 per cent and 45 per cent respectively following the higher sales and produc-tion capacity of examination gloves.
"We anticipate that its first quarter 2011 outlook will not be much different as we think the latex prices and exchange rates will continue to be unfavourable," OSK said.
The research house said this will be offset by the stocking up of activities by its customers.
Top Glove's customers may potentially carry out restocking rather than risk a further hike in selling prices when the rubber trees experience the wintering season, thus causing lower latex production.
On a year-to-date comparison, both the financial year 2010 revenue and net profit were higher by 36 per cent and 45 per cent respectively following the higher sales and produc-tion capacity of examination gloves.
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