Hartalega / Kuan Kam Hon

[winston]

not vested

Analysts cut Hartalega’s TP on lower utilisation rates, maintain 'positive' calls

by Izzul Ikram

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... tive-calls

[winston]

not vested

ASPs to peak in 1QFY22F

Hartalega recently paid RM41m in remediation fees to workers who joined the company prior to the implementation of its zero recruitment cost policy.

It expects ASPs to peak after rising by an estimated 8.8-12.4% in 1QFY3/22F, before declining from 2QFY3/22F onwards (-24% qoq).

Retain Add call, with a lower TP of RM9.68 (26x CY23F P/E).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... FC70846968

[winston]

vested

Hartalega 1Q net profit jumps to RM2.26b versus RM219.7m a year earlier

by Surin Murugiah

Hartalega 1Q net profit jumps to RM2.26b versus RM219.7m a year earlier

KUALA LUMPUR (Aug 3): Hartalega Holdings Bhd posted a record-high net profit of RM2.26 billion for the first quarter ended June 30, 2021 (1QFY22), versus RM219.72 million a year earlier, on the back of higher average selling prices (ASPs) and increased sales volume, although this was partially offset by an increase in raw material prices.

Revenue for the quarter surged to RM3.9 billion from RM920.09 million previously.

Earnings per share (EPS), meanwhile, grew to 66.08 sen, while net assets per share stood at RM1.91.

Source: The Edge

https://www.theedgemarkets.com/article/ ... ar-earlier

[winston]

vested

Hartalega Holdings (HART MK)
1QFY22: Beyond Expectations But Weighed By Outlook

1QFY22 results were beyond expectations, off higher volume sales.

Hartalega’s outlook on ASPs had a sharper-than-expected decline.

Demand has shifted to China given the inability of Malaysian glove producers, Hartalega included, to meet demand as utilisation rates are limited by restrictions on labour workforce.

While we think valuations are reflective of its outlook, Hartalega could be weighed by sentiment over the near term.

Maintain HOLD with a lower target price of RM7.10.

Source: UOBKH

https://research.uobkayhian.com/content ... 7f5bd38562

[winston]

vested

Mixed reactions to Hartalega’s strong 1QFY22 results as average selling prices, competition weigh

by Adam Aziz

At current price levels, Hartalega is trading close to pre-pandemic prices despite ASPs in 2H21 (the second half of 2021) being expected to average two to three times pre-pandemic levels, and Hartalega is expected to yield 11.6%,” HLIB Research said.

HLIB Research expects ASPs to decrease by 25% to 30% q-o-q, but pointed to the possibility of improved utilisation rates in the coming quarters.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... tion-weigh

[winston]

vested

Hartalega glove factories not running at full capacity on ‘disruptive’ fortnightly Covid-19 screening for workers

by Justin Lim

Not running at full capacity but at about 70% currently.

Hartalega can currently produce up to 44 billion pieces of gloves a year.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... -screening

[winston]

vested

Challenging ASP outlook
ASP downtrend to continue; D/G to SELL

We believe the strong 1QFY3/22 earnings performance will not be sustainable as ASP has been trending downward since May 21 on rising competition especially in the nitrile glove segment.

We lower our FY22-24 earnings forecasts by -1% to -62% after lowering our utilisation rate and ASP assumptions.

We downgrade Hartalega to SELL with a new TP of MYR3.99 (from MYR6.74) on an unchanged 19.4x CY23 PER (-1SD of historical mean).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/236370.pdf

[winston]

vested

Hartalega records 2Q net profit of RM914.01mil

Net profit of RM914.01mil in the second quarter ended Sept 30, 2021, a 67.72% jump over RM544.96mil in the previous corresponding quarter.

The group said revenue for the quarter rose 49.4% to RM2.01bil.

The board of directors declared a dividend per share of 35.2 sen as compared to 3.85 sen a share in the same quarter last year.

Year to date, net profit rose three-fold to RM3.17bil from RM764.68mil in the same period last year.

Revenue in for YTD period meanwhile rose 161% to RM5.91bil from RM2.27bil in the comparative period.

Source: The Star

https://www.thestar.com.my/business/bus ... rm91401mil

[winston]

vested

Hartalega 2Q net profit falls 60% q-o-q on lower ASPs and sales; warns prosperity tax could dent earnings

by Justin Lim

Hartalega’s latest quarterly profit dropped below RM1 billion for the first time after surpassing the mark for three straight quarters.

Revenue almost halved to RM2.01 billion in 2QFY22 from RM3.9 billion in 1QFY22.

Over 90% of its workforce have been fully vaccinated.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... ar-earlier

[winston]

2QFY22: Within Expectations; Some Clarity Emerges Over Bottom

2QFY22 results were within expectations.

The quarter was weighed by moderating ASPs and volume sales.

The latter was due to lockdown measures.

ASPs have taken a sharp dip but appear to have stabilised off the energy crunch in China and replenishment of inventory levels over the near term.

Meanwhile, Hartalega takes a oneoff RM400m hit arising from the Budget 2022 prosperity tax.

Maintain HOLD with a target price of RM5.95.

Source: UOBKH

https://research.uobkayhian.com/content ... 1371d8809c