MIDF Research maintained a ‘buy’ rating on Top Glove Corporation Bhd with an unchanged target price (TP) of RM8.29.
According to a note today, MIDF Research said the recommendation was supported by an attractive valuation of Top Glove on a price -to -earnings ratio of 4.3x the 2021 financial year earnings estimate and 12.8x the 2022 financial year earnings forecast, adding the firm expects the company's dividend yield for the year. financial year 2021 and financial year 2022, by 15.3% and 3.9%, respectively.
Bernama reported that the research firm said it would not make changes to Top Glove's earnings estimates pending the completion of the rubber producer's two listings on the Hong Kong Stock Exchange (HKEX) which were initially targeted for May or June.
Recently, Top Glove announced it had revised HKEX’s initial public offering (IPO) to 793.5 million new shares from its initial plan to issue 1.5 billion new shares.
"Following the changes, we expect the move to be a little late, possibly about a month.
"We are positive on the revised plan as we feel there is less liquidity for existing shareholders," added MIDF Research.
