0254 GMT [Dow Jones] Latexx Partners (7064.KU) down 1.5% at MYR2.61, off morning high of MYR2.68, despite posting more than two-fold jump in 3Q net profit to MYR14.3 million from MYR6.2 million a year earlier. "The stock started firm but fell prey to profit-taking thereafter," says dealer; notes stock +31% in October, suggesting solid 3Q earnings in price. Still, thinks stock has more upside in near term with robust earnings outlook likely to offer additional support. Separately, CIMB Research says based on strong pick-up in demand, potential increase in earnings and margins from higher sales, Latexx looks well on course for strong FY09. "We believe earnings in the final quarter could be even better than 3Q as the company finish installing Plant 5's remaining eight production lines in early October, well ahead of its December completion target," says CIMB. Adds, this will add capacity of 800 million pieces of gloves per annum in 4Q, taking its annual glove production capacity to 6 billion pieces; hence upgrades house FY09-11 earnings forecast by 6%-25%, raises end-10 target price from MYR3.17 to MYR3.97; keeps Outperform call. (ECH)
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