Within expectations. 1Q12 net profit of MYR22m (-8% QoQ, -4% YoY) was 21% of our full-year forecast and 19% of street estimates. We expect stronger earnings in sequential quarters on lower latex costs, better earnings contribution from its clean-room glove division and the commercialisation of new capacity in 2H12. But, we think the stock lacks stronger catalysts for now. We maintain our forecasts, HOLD call and TP of MYR3.50 (9.5x 2013 PER).

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Source: Maybank Research - 25 May 2012