STARTING COVERAGE 10 April 2007

Top Baseball glove Corporation

Glove industry's top dog

OUTSHINE RM9. 25

@10/04/07 Target: RM11. 85 Industrial (Rubber Gloves)

TOPG MK as well as TPGC. KL

Sharifah Farah + 60 (3) 2084-9965 – sharifah. [email protected] com

KKDN PP 14048/11/2007

• Global leader. Top Glove can be clearly living up to its name. It is the world's largest rubber glove manufacturer with an estimated global market share of 22%, which will it objectives to raise to 35% by 2010. • One-stop store. The group aims to turn into a one-stop look for gloves, a move which will help it to garner even more market share. It already offers a wide range of goods – from latex to synthetic safety gloves and by examination to industrial consumption. Top Baseball glove has 13 key items for equally hospital and industrial work with. • 25-40% annual growth to drive earnings. Earnings will probably be fuelled simply by its potential expansion of 25-40% s. a. in FY07-09. It plans a staggered expansion that will come up with market require. Top Baseball glove has a 3-pronged growth technique – organic and natural growth, growth via M& As and upstream diversification. • OUTPERFORM with goal price of RM11. 80. Top Baseball glove is trading at a CY08 P/E of 18. 2x, which is at a discount to its traditional 1-year forward P/E of 22x. Marking this typical to their CY08 EPS, we get a target value of RM11. 80, which in turn implies talk about price upside of 27. 6%, above the current marketplace return of 12%. We begin insurance coverage with a great OUTPERFORM recommendation. The main re-rating catalyst may be the improving quarterly earnings driven by their ongoing capability expansion and M& A activities. Economic summary

FYE 31 August Revenue (RM m) EBITDA (RM m) EBITDA margins (%) Pretax profit (RM m) Net profit (RM m) EPS (sen) EPS growth (%) P/E (x) Gross DPS (sen) Dividend yield (%) P/NTA (x) ROE (%) Net gearing (%) Net cash every share (RM) P/CF (x) EV/EBITDA (x) CIMB/Consensus (x) Source: Business, CIMB/CIMB-GK estimations, Reuters Quotes

2005 641. 8 fifth there’s 89. 0 13. 9 sixty five. 7 53. 4 28. 5 +34% 32. some 8. zero 0. 9 8. almost eight 29. four 63. some (0. 69) 24. 0 19. six

2006 992. 5 129. 5 13. 1 91. 8 79. 4 forty one. 5 +45% 22. three or more 9. zero 1 . 0 6. almost 8 32. some 75. one particular (1. 12) 16. a few 13. almost 8

2007F one particular, 367. one particular 175. 6 12. eight 127. on the lookout for 108. 0 44. you +6% twenty one. 0 15. 0 1 . 1 several. 9 21 years old. 3 0. 33 12-15. 7 13. 3 1 . 13

2008F 1, 713. 6 232. 4 13. 6 174. 8 147. 9 forty-nine. 4 +12% 18. 7 13. 0 1 . 5 3. three or more 18. 6 0. 40 14. one particular 13. 3 1 . twelve

2009F two, 110. a few 287. four 13. six 218. 6 185. one particular 61. eight +25% 15. 0 15. 0 1 . 6 2 . 8 nineteen. 7 0. 40 eleven. 2 12. 6 1 . 06

Selling price chart

10. 0 twelve. 0 being unfaithful. 0 8. 0 7 7. zero 0. some 6. zero 5. zero Apr May well Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr zero. 0 zero. 8 Volume 10 mil (R. H. SCALE) BEST GLOVE CORPORATION BHD RELATIVE TO KLCI (R. H. SCALE) 1 . six 1 . 2

Market capitalisation & discuss price info

Market cap 12-mth cost range 3-mth avg daily volume level # of shares (m) Est. free of charge float (%) Conv. secs (m) RM2. 7bn RM5. 70/RM10. 00 RM3. 7m 299. 6th 32 non-e Share cost perf. (%) Relative Total Major investors Dato' Sri Dr . Lim Wee-Chai Leading Glove Holdings 1M (5. 4) 3. 9 3M (18. 9) (4. 8) 12M 16. 6 fifty eight. 9 % held twenty-seven. 0 7. 2

Source: Bloomberg

Origin: Company, CIMB/CIMB-GK Research, Bloomberg

Please read carefully the important disclosures towards the end of this newsletter.

MALAYSIA

CIMB Research Survey

Background

Global market leader... Top Baseball glove is clearly living up to thier name. It is the planet's largest plastic glove company with an estimated global business of 22% based on its existing capability. …with offshore plants. Founded in 1991, the group was listed on Bursa Malaysia's second table a decade after and, within just 14 weeks of listing, graduated towards the main panel in May 02. It has as well diversified international and set up four production facilities in Asia and two in China, in addition to the doze facilities it has in Malaysia. Figure you: Corporate structure

Top Baseball glove Medical (Thailand) Great Glove (Thailand) TG Medical (USA) Inc Wonderful Glove Sdn Bhd BEST GLOVE CORP Top Glove Sdn Bhd TG Medical Sdn Bhd Top Glove Engineering Best Glove International - M'sia Top Baseball glove Technology - M'sia Top Glove (Zhangjiagang) Co. Limited Great Baseball glove (Xinghua)...