Hartalega shares jump 5% on strong profit – Business News


KUALA LUMPUR: Hartalega Holdings Bhd ’s shares surged in early trade Wednesday after reporting a 70% profit jump in its latest quarterly quarterly results.

The glovemaker gained 60 sen, or 5.54% to RM11.44 and is among the top gainers so far today.

Hartalega announced a 70.7% jump in quarterly net profit, together with a 4 sen interim dividend payout.

It has also proposed bonus issue on the basis of one bonus share for every one existing share held. This is to reward shareholders and improve its share liquidity.

Its net profit rose to RM113.02mil in the third quarter ended Dec 31, 2017 (3QFY18) from RM66.23mil a year ago, buoyed by higher sales and improvement in production capacity, as well as lower costs due to improved operational efficiencies.

Quarterly revenue rose 32.2% year-on-year to RM603.1mil from RM456.2mil, due to a 36.2% rise in sales volume.

The four sen payout it announced is the second interim dividend for the financial year ending March 31, 2018 (FY18), and is payable on March 28.

JF Apex Research said Hartalega’s 9FY18 net earnings came in within the house and market expectation.

“The group’s 9MFY18 net profit of RM322.5mil accounts for 79.8% of our full year estimate and 75.4% of market forecast,” it said.

The research house maintained Hartalega’s earnings forecasts for FY18F whilst upgrade its net earnings for FY19F by 15% as it account for higher sales growth due to the launch of anti-bacteria glove during second half of 2018 and stronger demand following China’s district enforcement against polluting industries.

“Downgrade to ‘hold’ from ‘buy’ with a higher target price of RM11.47 (previous target price: RM9.18) following our earnings upgrade in FY19F.

“We believe that current share price has fully reflected its strong fundamental and the positive outlook of the group,” JF Apex said.

Read more : thestar

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