Maintain BUY. Top Glove is buying a 30,773ha greenfield rubber plantation land in Indonesia for MYR22m. The first tapping is only expected in 2020 and upon full tapping, will be able to meet 40% of Top Glove's current rubber requirement. We are long-term positive on this latest development as it will reduce the volatility of its key input cost. Top Glove's operating environment remains conducive for now, amid declining latex prices and a strengthening USD. We maintain our forecasts, BUY rating and TP of MYR5.60 (16x 2013 PER).

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Source: Maybank Research - 26 June 2012