Hartalega / Kuan Kam Hon

[winston]

not vested

RHB IB sees Hartalega’s 1QFY2025 earnings improving

By Ishra Kamiso

Expected to deliver a sharp jump in core net profit for the first quarter thanks to higher product prices and volume.

The house expects Hartalega to deliver core earnings of RM20 million-RM25 million for the first quarter ended June 30 (1QFY2025) versus RM1.8 million in the fourth-quarter, or 4QFY2024. Hartalega is scheduled to report its on Aug 6.

Average selling prices (ASP) rose 5% quarter-on-quarter while demand outlook improved and operating efficiency gain.

Revenue meanwhile likely grew 13.6% to MYR602 million in 1QFY2025, it said.

In terms of cost, RHB IB estimates a 3% increase in 1QFY2025, attributed to higher nitrile and natural gas prices. Net margin will likely improve further to 4% from 0.3% in 4QFY2024.

Malaysia’s glove exports volume rising 8% quarter-on-quarter and 29% year-on-year.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/721064

[winston]

not vested

Hartalega posts turnaround in 1Q with RM32m net profit

By Isabelle Francis

Net profit of RM31.9 million or or 0.94 sen per share for its first quarter ended June 30, 2024, a turnaround from the loss recorded in the previous financial year’s corresponding quarter.

Profit before tax for the quarter under review rose to RM41 million from a loss of RM45 million.

Quarterly revenue increased by 33% to RM584 million from RM440 million recorded in the corresponding quarter last year.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/721831

[winston]

not vested

1Q Results

Revenue: +32%; Rm 583m
EPS: 0.94; RM 32m
Net Asset: 1.37

https://www.bursamalaysia.com/market_in ... id=3471019

[winston]

not vested

Aug 6, 2024

1QFY3/25: No surprises

1QFY25 core net profit of RM32.4m (from losses in 1QFY24) was in-line with our expectation at 23% of full-year forecast, driven by strong sales volume.

Despite improving sales volume growth and cost pass-through ability, we view recent currency volatility and lingering excess capacity as headwinds.

Reiterate Reduce with an unchanged TP of RM2.48 (1.8x FY25F P/BV) as the market has priced in a far distant recovery, in our view.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 14DC0E9610

[winston]

vested

Headwinds from a strengthening ringgit

Maintain Reduce with a lower TP of RM2.29, as we use GGM methodology to better capture Hartalega’s long-term profitability trend and currency impact.

FY3/25F EPS raised c.8% to reflect sooner-than-expected improvement in its cost pass-through ability given US’s impending import tariffs on China goods.

Our FY26-27F EPS lowered by c.5% to factor in a weaker US$ vs. RM.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 2C7997ADCA

[winston]

not vested

ESG 2.0: Defending an above average scoring

ESG score improves, to 64/100; maintain BUY

We revisit HART’s ESG disclosures post release of its FY24 Annual and Corporate Governance Reports and have assigned an above average ESG score of 64 (out of 100), which is higher than its previous ESG score of 61 when first introduced in FY22.

We maintain our earnings forecasts and MYR4.28 TP based on an unchanged 3x CY26E P/B peg. Reiterate BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/416361.pdf

[winston]

vested

Hartalega's 2Q net profit falls 69% as weaker export revenue, higher input costs weigh

Net profit fell 69% in the second quarter as export revenue fell with the rising ringgit, while raw material costs surged. Net profit for the three months ended Sept 30, 2024 (2QFY2025) was RM8.63 million,

Revenue for the quarter surged 44% year-on-year to RM652.07 million.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/733622

[winston]

not vested

Look beyond 1HFY25 earnings for stronger growth

Below expectations, expect stronger 2H earnings

HART’s 2QFY25 core net profit of MYR30.8m (+14% YoY, -6% QoQ) was below our and consensus estimates, primarily due to the sudden strengthening of MYR against USD in July-Sep 2024.

However, 2HFY25E earnings should improve, driven by higher sales volume, increased ASP and stablising USD/MYR rate.

We revise our FY25-27E earnings forecasts by -13% to +41% and TP to MYR4.31 (+3sen; on unchanged 3x CY26E P/B). BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/418222.pdf

[winston]

not vested

Hartalega Holdings (HART MK)
2QFY25: Basking In The Afterglow Of Refinement

Harta continued to chart impressive sales volume and ASP growth in 2QFY25, despite facing headwinds such as unprecedented forex losses and higher ramp-up costs.

Removing exceptional items, core earnings fell into the red at RM29m in losses (1QFY25: RM37.2m profit).

That said, the market will likely look beyond these near-term noises and focus on improvement in core profitability in 2HFY25.

Maintain BUY with an unchanged target price of RM3.66.

Source: UOBKH

https://39646150.fs1.hubspotusercontent ... (HART%20MK)%20241113.pdf?utm_medium=email&_hsenc=p2ANqtz--973C-32QIFDDrqQY2sPRq1ou4EHPnYWR0n0e2Zl8zOWnwSy8hu6LwmEHma4dz4QfZCDm3FBYvveCKc_64qyZH4ITQTg&_hsmi=333658501&utm_content=333658501&utm_source=hs_email

[winston]

not vested

BIMB Securities downgrades Hartalega to ‘sell’ after price rally

By Sankita Jayanandan

Due to recent rally in share price, we downgrade our call to a ‘sell’ call, from ‘hold’, but with a higher TP (target price) of RM2.90 (RM2.60 previously), as we rolled over our valuation to FY2027F,”.

BIMB bases its lower TP on a forward price-to-earnings (PE) of 27 times, pegged to FY2027 earnings.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/733773