Top Glove (TOPGLOV): How To Play The 4Q Result?

 

1. Sifu told me to watchout for tomorrow 4Q result for Top Glove.

2. He said anything below RM700m is bad for share price - it should decline to below RM7.50 if this happen

3. But if it increase above RM800m - share price should increase above RM8.60

The value of a company depends on the profit that it makes.

He gave me this whole table to refer to.

4Q profit in RM million	Annualized	PE	Market Cap	No Of Shares	TP
400	1600	22	35200	8170	4.31
500	2000	22	44000	8170	5.39
600	2400	22	52800	8170	6.46
700	2800	22	61600	8170	7.54
800	3200	22	70400	8170	8.62
900	3600	22	79200	8170	9.69
1000	4000	22	88000	8170	10.77
1100	4400	22	96800	8170	11.85

 

Currently the market price is telling everyone that the number should be between RM700m to RM800m profit.
This is because the share price of RM8.43 falls within the range of RM7.54 to RM8.62.

So anything below RM700m means share price will drop a lot by more than 10%.

So anything above RM800m means share price will increase a lot by more than 10%.
 

Why 22x PE? Because average 10 years earnings growth is minimum 22%. Especially this year it can easily achieve 100% and next year another 100% so 22% in 10 years can achieve.

 https://klse.i3investor.com/blogs/feliciawong/2020-09-16-story-h1513525890-Top_Glove_TOPGLOV_How_To_Play_The_4Q_Result.jsp