Tuesday, July 31, 2018

Topglov: Just The Same Old Bad News!

Topglov failed in its bid to obtain a Mareva injunction from the KL High Court against Adventa Capital and related owners that will prevent dealings in their assets (here). This is part of the legal suit filed to seek damages and losses totaling RM715 million from the purchase of Aspion Sdn Bhd. Topglov claims that it had entered into the sale & purchase agreement based on misrepresentation made by Adventa Capital and related owners.

On opening, Topglov share price dropped to a low of RM9.72. However, the decline was short-lived and the share price recovered back above RM10.00 by 9.30 a.m.

At the current price of RM10.10, Topglov is trading at a PER of 29.8 times. That's just marginally higher than Supermx's PER of 28.1 times. For the largest rubber glove producer in Malaysia - and the world - to be trading at a PER nearly matching the smallest of the Big 4 rubber glove producers is a good buying opportunity.

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