Hartalega / Kuan Kam Hon

[winston]

not vested

3Q Results

Revenue: +78%; RM 738m
EPS: -14%; 0.57; RM 20m
Net Asset: RM 1.26

https://www.bursamalaysia.com/market_in ... id=3524112

[winston]

not vested

Hartalega's 3Q net profit down 13% on higher operating expenses; shares slip to three-month low

The sector will have to contend with some ongoing headwinds, including persistent global oversupply as market adjustment continues.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/744825

[winston]

not vested

Analysts slash Hartalega's earnings outlook on lower sales volume, margins

By Isabelle Francis

Hong Leong Investment Bank (HLIB) said it expects Hartalega to swing into the red due to weaker ASPs, sales volume and higher costs.

Seen more competitive ASPs in non-US markets as more Chinese glovemakers shift their focus onto sales to non-US markets.

We expect Harta’s sales volume to only improve towards 1QFY26, as we estimate that US buyers will fully utilise their front-loaded purchases by May 2025 at the earliest.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/744968

[winston]

Turning cautious Profit below expectations

HART’s 3QFY25 core net profit of MYR27.6m (+35% YoY, -11% QoQ) missed expectations due to higher tax charges and operating costs from new production lines.

Management turned cautious on the sector outlook amid rapid capacity expansion by China glove makers in Southeast Asia, prioritising efficiency over volume with a focus on automation and technology.

We cut FY25-27E earnings forecasts by -35% to -69% and lower TP to MYR2.70 (-37%), on a lower 2x CY26E P/B (-0.5SD, from 3x mean) to reflect supply risks from 2HCY26 onwards. D/G to HOLD (from BUY).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/436919.pdf

[winston]

not vested

3QFY25: Consolidation In Motion

Despite Harta’s impressive sales volume and earnings turnaround in 3QFY25, the cautious tone from management in the post-results briefing led to a steep share price decline of 23% yesterday.

We cut FY25-26 earnings following management’s weaker volume sales guidance, but deem that valuations have now fallen to attractive levels.

Beyond temporary weakness, the sequential earnings growth trend throughout 2025-26 remains intact.

Upgrade to BUY. Target price: RM3.14.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

Hartalega anticipates turnaround amid early signs of sales recovery

“Early signs of recovery in sales orders from US customers for May 2025” and anticipating “a more meaningful replenishment” in June as inventories are drawn down.

Hartalega expects a 15%–20% quarter-on-quarter decline in sales for fourth quarter (4Q) of FY25.

Hartalega is preparing to implement a price hike in July 2025, conditional upon a sustained recovery in June.

Source: The Star

https://www.thestar.com.my/business/bus ... s-recovery

[winston]

not vested

Possible turnaround for Hartalega

Source: The Star

https://www.thestar.com.my/business/bus ... -hartalega

[winston]

not vested

Hartalega 4Q profit falls on lower non-operating income despite operational recovery

By Myia S Nair

Quarterly revenue increased 15.31% to RM611.55 million, driven by a 9% rise in sales volume and a 6% increase in average selling prices.

The company posted a lower quarterly net profit of RM14.48 million for the quarter versus RM14.90 million a year befor

The rubber glove sector is expected to keep recovering in 2025, helped by steady demand, restocking and trade shifts caused by the US-China tensions, which could benefit Malaysian exporters.

However, challenges remain, including global oversupply from the Covid-19 boom, US tariffs, and stiff competition, especially with weaker US demand in early 2025.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/754144