Hartalega / Kuan Kam Hon

Re: Hartalega / Kuan Kam Hon

Postby winston » Wed Aug 05, 2020 9:51 am

not vested

HLIB Research maintains a BUY rating on Harta and upgrades its TP to RM24.10 (from RM20.12), on optimism that Hartalega will continue to focus on their capacity expansion plans from current 39bn to 44bn pieces by FY22 and expect to enjoy more upward “catch up” of ASPs in the coming quarters.

Technically, the stock is likely to rewrite all-time high of RM21.16 (3 Aug) following a bullish hammer candlestick pattern yesterday.

Higher targets are RM21.16-22.00-22.60 whilst supports fall on RM19.00-18.00-17.40.

Source: HLIB
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Re: Hartalega / Kuan Kam Hon

Postby winston » Wed Aug 05, 2020 10:00 am

not vested

Slowly but surely
Trading at mean; maintain HOLD


1QFY3/21 results were above expectations and we expect stronger earnings ahead given the steep ASP hikes.

We raise our FY21-23E EPS by 100%/190%/17% on higher ASPs assumptions.

Our new TP is MYR20.60 (from MYR12.15), based on a lower CY21E P/E of 27x (from 41x), being
its 5Y mean.

HOLD.

Prefer Kossan (BUY, TP MYR19.50) for its relatively undemanding CY21E P/E of 16x and 2-year (CY19-21E) EPS CAGR of 163%.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 20b54b.pdf
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Re: Hartalega / Kuan Kam Hon

Postby winston » Wed Aug 05, 2020 2:17 pm

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Is Hartalega's record quarterly profit impressive enough?

by Justin Lim

It's net profit more than doubled to RM219.72 million.

Quarterly revenue expanded 43.7% year-on-year to RM920.09 million from RM640.1 million.

Market consensus forecast Hartalega's annual profit to be at RM1.32 billion for the financial year ending March 31, 2021 (FY21). This means Hartalega's 1QFY21 net profit only accounted for 16.6% of the full-year earnings consensus.

Malacca Securities revised target upwards to RM18.44, from RM18.00 previously, following the upward revision of price-earnings ratio (PER) at 55 times.

Public Invest's target price of RM11.10 is was one of the lowest among the research house analysts with a "neutral" call for the stock.


Source: The Edge

https://www.theedgemarkets.com/node/524898
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Re: Hartalega / Kuan Kam Hon

Postby winston » Thu Sep 03, 2020 11:48 am

not vested

Aug 11, 2020

Acquiring land adjacent to NGC

Hartalega is acquiring a 60.6-acre land in Sepang, Selangor for RM158.3m. This land is strategically located adjacent to its current NGC facility.

This land is able to host 4 glove plants with a total capacity of 19bn. This will increase Hartalega’s total installed capacity to 95bn pieces by end-2027F.

Reiterate Add, with an unchanged TP of RM24.30 (41x CY21 P/E).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 1F5CE5B638
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Re: Hartalega / Kuan Kam Hon

Postby winston » Wed Sep 16, 2020 7:49 am

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Hartalega: Demand for gloves to outstrip production capacity over next three years

KUALA LUMPUR, Sept 15 — The rubber glove industry will not be able to meet market demand in the next three years, said Hartalega Holdings Bhd executive chairman Kuan Kam Hon.

“Glove dipping is a long process. The expansion or transition period (to meet the demand) is at least three years.

“Even in the fourth year, if you have extra (rubber gloves), they’d go into inventory building. When you have a supply shortage, you are not able to build up inventory,” he told reporters after the company’s annual general meeting here today.

Kam Hon said Hartalega, the world’s largest producer of synthetic rubber gloves, was expanding its capacity by about 20 per cent per annum, which is slightly more than the organic growth in the industry.

“Demand for rubber gloves in developed countries has increased by 30 per cent. While the per capita consumption used to be low, now the usage has more than doubled in developing countries,” he said.

He said in order to cater to this demand growth, as well as taking a long-term perspective towards the structural step-up in demand, Hartalega was accelerating capacity expansion via its Next Generation Integrated Glove Manufacturing Complex (NGC) in Sepang, Selangor.

“To date, we have commissioned 10 out of 12 production lines for Plant 6, while for Plant 7, the first production line is on track for completion next month,” said Mun Leong.

Hartalega is also scaling up expansion plans with the acquisition of 24.23 hectares of land adjacent to Plant 7.

This would see the construction of four additional plants, namely Plants 8 to 11, adding an installed capacity of another 19 billion pieces of gloves per annum once completed, he said.

“Our long-term capacity growth will be propelled by our next expansion phase, the NGC 2.0. We aim to commission the first production in the first half of 2022.

“Once fully completed by 2027, it will see the group’s total annual installed capacity increase to 95 billion pieces per annum,” added Mun Leong.

Meanwhile, the company has approved a final dividend payout of 2.1 sen per share for the financial year ended March 31, 2020.

Source: Bernama

https://www.malaymail.com/news/money/20 ... ee/1903473
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Re: Hartalega / Kuan Kam Hon

Postby winston » Thu Sep 24, 2020 9:25 am

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Hartalega (HART MK)

Share Price: MYR14.50
Target Price: MYR20.60
Recommendation: Buy

Safe place to hide

We raise our FY21/22/23E EPS by 27%/125%/267% but our TP remains unchanged at MYR20.60 as we lower our CY21E P/E to 14x (-1SD of 5Y mean; from 27x) given that its earnings may taper in FY23E on more new supply. U/G Hartalega to BUY (from HOLD).

Valuations are undemanding with its CY21/22E P/E at 9x/12x and offers DY of 4%/7% in FY21/22E.

Hartalega is now our top pick for its share price (YTD: +165%) lagged its big-cap peers and its ASP may also catch up with its peers.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 40e5d9.pdf
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Re: Hartalega / Kuan Kam Hon

Postby winston » Thu Oct 01, 2020 9:04 am

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The industry’s gold standard
Deserves premium valuations; maintain BUY

Hartalega’s devotion to sustainability has made it the industry’s gold standard.

ESG risk should fall over the years as it invests in automation to improve efficiency and reduce labour dependency.

Hartalega’s vision is for humanless factories in the foreseeable future.

Stock’s valuation is usually at a premium to its peers due to its superior margins/ROE and
quality of management.

Maintain BUY with unchanged TP of MYR20.60 (14x CY21E P/E; -1SD of 5Y mean to factor in weaker earnings in FY23).

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... cf877b.pdf
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Re: Hartalega / Kuan Kam Hon

Postby winston » Tue Oct 27, 2020 4:37 pm

vested

Hartalega posts record revenue, earnings in 2Q

by Justin Lim

KUALA LUMPUR (Oct 27): Hartalega Holdings Bhd has recorded its best-ever quarterly net profit at RM544.96 million in the second quarter ended Sept 30, 2020 (2QFY21), which is about five times the RM103.87 million posted last year.

Earnings per share likewise surged to 15.95 sen versus 3.09 sen previously, the group’s filing with the local bourse showed.

Quarterly revenue jumped 89.73% to RM1.35 billion from RM709.42 million in 2QFY20.

With the progressive commissioning of Plant 7, the group’s annual installed capacity is expected to increase from the current 41 billion to 44 billion pieces by the financial year ending March 31, 2022 (FY22),”

Source: The Edge

https://www.theedgemarkets.com/article/ ... m-year-ago
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Re: Hartalega / Kuan Kam Hon

Postby winston » Wed Oct 28, 2020 9:30 am

A safe bet in ‘volatile' times

1HFY3/21 core net profit of RM765m (+286% yoy) was above expectations, driven by surge in sales volume and higher-than-expected increase in ASPs.

Hartalega should continue recording stronger results in the upcoming quarters, backed by favourable supply-demand dynamics due to Covid-19.

Reiterate Add, with higher TP of RM24.80 (33x CY22F P/E).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... C68AC8392F
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Re: Hartalega / Kuan Kam Hon

Postby winston » Wed Oct 28, 2020 11:18 am

vested

Hartalega Holdings (HART MK)
2QFY21: Beyond Expectations; Stable ASPs Until End-21


2QFY21 results came in beyond expectations off the back of steeper ASP revision and
robust 2021 visibility.

Near-term existing capacity will be enlarged by Plant 7. However, NGC1.5 will be commissioned only in late-21, at the tail end of the opportune supercycle earnings window.

Maintain HOLD as premium valuations appear to have priced in the exciting earnings growth.

Maintain target price at RM19.50. Entry price: RM17.00.

Source: UOBKH

https://research.uobkayhian.com/content ... c06e684b53
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