KUALA LUMPUR: CGS-CIMB Equities Research reiterates its Overweight call on the glove sector as concerns of potential declines in average selling prices (ASPs) from CY21F onwards are premature at this juncture.
The research house said signs are showing that ASPs may stay elevated for a longer period (up to end-CY21F).
“Despite its bright prospects, the Malaysian glove sector is trading attractively at 16.7 times CY21F P/E, a 24.3% discount to its five-year mean P/E of 22.1 times.
...