Alliance Research maintains Neutral on glove makers

KUALA LUMPUR: Alliance Research said Malaysia’s glove sector had delivered good results in 2013, leading to a good run for the sector during the year which outperformed the FBM KLCI by 53%.

“While fundamentals remain intact in 2014, we believe most of the glove makers are fairly priced at current valuation (16 times 2014 P/E), except for Kossan as we foresee the stock to maintain its uptrend momentum on strong two-year earnings CAGR of 22%,” it said on Tuesday.