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CIMB: Top Glove Corporation – Reduce TP RM1.30 (Previous RM1.50)

Multiple headwinds still ahead

? 1HFY8/22F core net profit of RM272m (-95% yoy) was below expectations,
due to lower-than-expected ASPs and surge in operational costs.

? While ASPs may have bottomed in 3QFY22, we expect multiple headwinds in
terms of higher raw material costs and increase in operating expenses.

? We reiterate our Reduce call and TP of RM1.30 (20x CY23F P/E).

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