KUALA LUMPUR: Shares of rubber glove manufacturer Top Glove Bhd saw brisk trade yesterday, making it the top gainer of the day by market close, adding 32 sen or 2.79% to close at RM11.78.

The glove maker’s stock performance has been stellar in the last year, climbing steadily from its 52-week low of RM4.18 on Jan 21, 2009. It hit a record high of RM11.96 on Jan 14, 2010.

Being one of the most favoured stocks by analysts, it has had seven buy calls since the beginning of the year, with target prices ranging from RM11.30 to RM15.70.

Top Glove rose to a high of RM11.80 in intra-day trading yesterday, after opening at its previous close and intra-day low of RM11.46. A total of 948,300 shares were traded.

Its share price has risen 181% in the past 12 months, outpacing the rise in the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI).

Top Glove has a price-to-earnings ratio (PER) of 17.39 times against 16.4 times for Supermax Corp Bhd, Latexx Partners Bhd’s 17.79 times, and Adventa Bhd’s 30.29 times.

The world’s largest maker of rubber gloves has been basking in the attention of investors and analysts following the surge in demand for gloves in light of the A(H1N1) influenza pandemic that gripped the world last year.

Meanwhile, Tan Sri Lim Wee Chai, chairman of Top Glove, said it aimed to match last year’s dividend payment of 40% of its profit.

“We have better profit, good cash flow and a very healthy balance sheet,” he said in an interview with Bloomberg here yesterday.

Top Glove raised its dividend distribution ratio to 40% last year from 30% as profits surged and the global flu outbreak bolstered demand for its disposable gloves.

Its profit had climbed by an average compounded annual rate of 36% in the past 15 years, Lim said. Net income gained 54% to RM169.1 million in 2009.

Top Glove aimed to achieve analysts’ consensus net profit forecast of RM250 million this year, or a 48% increase, Lim said. “To maintain this, we need both organic and acquisition growth,” he said.

The manufacturer has cash holdings of RM250 million. It aimed to spend RM100 million of this on acquisitions and RM80 million on organic growth, Lim said, adding that the company did not plan to borrow or sell debt.

Top Glove is looking at companies or factories to buy in Indonesia, Thailand and Vietnam as well as locally, Lim said, adding that the company hoped to make its first acquisition this year.

According to Bloomberg, the stock has more than doubled in the past 12 months, outpacing the 50% increase in the benchmark FBM KLCI Index over the past 12 months, surging 181%.

“We have earned it,” Lim said, referring to the share price surge.