Results Note � Top Glove (BUY, maintain)

Top Calls

Results Note � Top Glove (BUY, maintain) - Sequential recovery Top Glove�s 3QFY16 revenue was slightly lower while core net profit came in below our expectation on a sharp contraction in the EBITDA margin. Quarterly core net profit fell on the weaker US$, higher raw material prices and declining nitrile gloves ASP. We expect 4QFY16 to recover sequentially on higher sales volume and easing ASP worries. Maintain BUY but we lower our TP to RM6.30 based on 21x CY16E.

Other Calls

Economy � CPI - Headline inflation improves further to 2% yoy in May

Economy � US Economy � Monetary Policy - US Fed delayed its hike in Federal Funds rate in June

Morning News & Market Summary

For important disclosures, please refer to the Disclosure section at the end of the individual linked research reports.