Hartalega / Kuan Kam Hon

Re: Hartalega

Postby winston » Sun Feb 05, 2017 7:46 am

KUAN KAM HON @ KWAN KAM ONN
Flagship: Hartalega Holdings Bhd
Net worth: RM4.4bil

KUAN derives his wealth from flagship Hartalega Holdings Bhd where he is executive chairman.
He controls 49.3% of the company.

A self-made tycoon, Kuan founded the company in the early 1980s and was instrumental in growing it to become the world’s largest manufacturer and distributor of nitrile gloves.

It has infrastructure built to support the production of 22 billion gloves per year and exports to 40 countries.

Glove makers, including Hartalega, staged multiple rallies in 2015 on the back of the strengthening of the US dollar against the ringgit.

However, a sharp reversal in the exchange rate ensued last year, resulting in the easing of their share prices.

Shares of Hartalega were down by 19% to RM4.83 as at the end of last year from RM5.94 a year before, giving the stock a market cap of RM7.93bil.

Correspondingly, Kuan’s estimated wealth comes in lower at RM4.44bil from RM5.37bil a year before – moving him one notch lower to No. 11 on the list.

At 70, Kuan still plays an integral role in the company, but has passed some day-to-day running of the business to his two sons.
Hartalega is ramming up its capacity, albeit at a moderate pace, via its next-generation integrated glove manufacturing complex at Sepang.

According to analysts, Hartalega is expected to see volume output at a 17% compounded annual growth rate in FY17-FY19 at an assumed 85% utilisation rate based on management’s capacity guidance.

The plan is to increase capacity to 42 billion gloves yearly by 2020. Even so, the company’s net gearing has remained relatively low at around 10%, underlining its prudence in maintaining a strong balance sheet whilst in the midst of its expansion plans.

Source: The Star
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Re: Hartalega / Kuan Kam Hon

Postby winston » Thu Nov 30, 2017 9:44 am

Hartalega Holdings (HART MK)
Risk/Reward Still On The Downside


Although the new germ-killing gloves should help Hartalega to retain and improve its upscale positioning in the market, we still find that the stock’s risk/reward profile is skewed to the downside.

Besides, we view the act of index-linked asset managers scrambling to rejig their portfolios as an opportunity to top-slice on strength.

Maintain SELL but lift target price to RM7.46 as we roll over our valuation to 2019.

Source: UOBKH

https://research.uobkayhian.com/content ... 7e9e5b0d4d
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Re: Hartalega / Kuan Kam Hon

Postby winston » Wed Jan 09, 2019 10:44 am

not vested

Rising pressure in the nitrile glove segment?

We attribute the recent selldown of Hartalega shares to keener competition in nitrile glove segment and risings cost.

We estimate impact of stronger ringgit vs. US$ as well as gas and minimum wage hikes to be minimal, given the recent decline in nitrile butadiene prices.

Maintain Hold. We lower our P/E multiple from 36.5x to 28.2x to account for potential weaknesses in its near term earnings. Our revised TP is RM5.58.

Source: CIMB

https://brokingrfs.cimb.com/Yo3uKqQlwDv ... FsDmA2.pdf
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Re: Hartalega / Kuan Kam Hon

Postby winston » Fri Jan 18, 2019 2:14 pm

not vested

Hartalega upgraded to overweight at JPMorgan; price target RM6.60

Price target (PT) raised to RM6.60 from RM6.40. Hartalega average PT is RM5.64.

Hartalega had 2 buys, 12 holds, 6 sells previously: Bloomberg data


Source: Bloomberg

http://www.theedgemarkets.com/article/h ... rget-rm660
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Re: Hartalega / Kuan Kam Hon

Postby winston » Wed Feb 13, 2019 9:53 am

not vested

Hartalega Holdings

Slowing down its horses

9MFY3/19 net profit of RM365m came in below expectations, making up only 71% of our and 72% of Bloomberg consensus’ FY19 estimates.

The weaker-than-expected 3QFY19 results were due to:-
i) increase in tax rates,
ii) slower sales growth and
iii) higher operating costs.

Maintain Hold, with lower TP of RM5.40 (28.2x CY20F P/E).

Source: CIMB

https://brokingrfs.cimb.com/vCDkuDnzxg3 ... g4xcA2.pdf
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Re: Hartalega / Kuan Kam Hon

Postby winston » Mon Apr 01, 2019 9:12 am

not vested

Trading Buy: 5168 - HARTA
(Last price: RM4.63, Potential upside +10.8%)

Company Profile
Hartalega is the largest nitrile (95% nitrile: 5% latex) gloves manufacturer in Malaysia.

Trading Catalyst
In anticipation of a weak 4QFY19 results in May and a slowdown in NGC expansion plans, HARTA’s market capitalisation plunged 14.9% or RM2.71bn to RM4.63 post its 3QFY19 results due to:
1) Excessive valuations;
2) Waning USD effect;
3) Normalising demand;
4) Swelling capacities and intensified competition;
5) The delay in FDA approval for its new Anti-Microbial Gloves (AMG) to Dec-19 (vs Jun-19 previously)

In our view, those risks are overblown as value has emerged with the negatives appearing to be priced in and valuations become more reasonable at 27x FY20 P/E, supported by the more superior ROE and net margins (vs. its peers).

Technically, HARTA is poised for a downtrend line breakout to retest RM4.80-5.00 territory, after a brief consolidation.

Technical View
Resistance: RM4.84 / RM5.03 / RM5.13
Support: RM4.50 / RM4.40
Cut loss: RM4.38

Key Financial Stats
Trading at 27x FY20 P/E, supported by the more superior ROE and net margins (vs. peers).

Source: HLIB
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Re: Hartalega / Kuan Kam Hon

Postby winston » Fri Jun 07, 2019 8:03 pm

not vested

Hartalega Holdings

Hartalega Holdings (Hatalega) is one of the worst performing stock year-to-date. However, RHB continues to like Hartalega for its superior profitability and defensive balance sheet.

Hartalega recorded an average 5-year net profit margin of 16-20 percent, which is far superior to its peers’ 8-10 percent.

Its net gearing of 11 percent is also the lowest among the Big Four. The consistent earnings and management track record is also another investment merit of Hartalega that RHB highlighted.

BUY, TP RM6.18; Current share price RM5.17

Source: RHB
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Re: Hartalega / Kuan Kam Hon

Postby winston » Wed Jun 12, 2019 5:21 pm

not vested

Hartalega: Maintain SELL but with a higher target price of RM4.60 (from RM4.15), based on 29x 2020F PE.

It is at a slight premium to its peers. The premium can be justified by its strong operating efficiency and the ability to generate a high ROE of 25% (peers’ average: 22%).

Nevertheless, our bearish call is premised on Hartalega’s lofty valuation (33x 2019F PE) which limits potential upside.

That said, going forward, we expect:
a) FDA approval for its groundbreaking antimicrobial gloves slated for end-19; and
b) land acquisition for its next expansion phase - Next Generation Integrated Glove Manufacturing Complex 2 (NGC 2) - to potentially catalyse valuations.

Source: UOBKH
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