Top Glove announced yesterday that its wholly-owned subsidiary, Top Glove Properties SB has entered into a sales and purchase agreement with Century Total Logistics SB to acquire a 1.5-acre piece of commercial land in Mukim of Bukit Raja, Selangor, for a total cash consideration of RM20.3m.

Comments:  We understand that the location of this land is adjacent to the land  whereby  Top  Glove  tower  is  being  constructed.  As  this  juncture, management has indicated that the acquisition of this land is for investment purposes  and   currently  have  no  other  concrete  plans  for  this  land.  We believe that funding would not be an issue as Top Glove is in a net cash position of RM142.8m as at 2QFY15. We maintain our  BUY rating on Top Glove with a TP of RM 5.75.

Source: Affin Hwang Capital Research - 21 Apr 2015