PublicInvest downgrades rubber gloves sector to ‘underweight’

TheStar Fri, Apr 19, 2019 08:40am - 4 years View Original


KUALA LUMPUR: PublicInvest research has downgraded the rubber gloves sector to “underweight” from “neutral” as it expects price-earnings contraction to continue.

“Despite the recent selldown, we believe the sector is still trading at unattractive PE valuations and could potentially contract closer to historical average of 21x-26x (previously we pegged our valuations at 24x-33x forward earnings).

“In addition, we cut the sector’s FY19-20F earnings by 3%-14%,” it said in a note.

The research house said there would be capacity expansion in the sector over the near term to meet the surge in demand for latex and nitrile gloves due to the vinyl gloves disruption in 2016/2017.

...

Full Article on TheStar

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






Related Stocks

HARTA 2.750
KOSSAN 1.960
TOPGLOV 0.800

Comments

Login to comment.