https://www.youtube.com/watch?v=xfsSNvF6ysM&feature=youtu.be 

 

This video talks about Hartalega Holdings. 

 

In this video, we would look at five focus, review of the business, financial performance, stock evaluations, upsides and downsides of the company, and price targets.  

 

Harta is one of the component stocks of FMB KLCI. which lists the top 30 largest public listed companies in Malaysia. It manufactures a wide range of gloves and has the largest nitrile glove capacity among the glove makers.  

 

In the year of 2018, Harta recorded revenue of 2.83billion, and profit after tax of four hundred and fifty-five million, an increase of 17.5 per cent and 3.5 % respectively. The strong results were attributable to two factors. Firstly, the improved sales volume, which grew by 10% year-on-year to 28 billion pieces of gloves. Secondly, the growing global demand for nitrile gloves and the increased contributions from the US and Europe. 

 

Due to the ongoing commissioning of Plant 5 of the NGC and construction of Plant 6, there is an increase in property, plant and equipment. As a result, the company’s total assets are increased by 13.7% 

 

In terms of the stock evaluations, the company has an EPS of 13.7, PE of 35.7 and ROE of 20.3.  

 

What’s good about Harta? Firstly, four of the six NGC plants are fully operational, implying an average growth of 14%. Secondly, it would have less intensive competition, as major glove producers delay their capacity expansion plans. Furthermore, Harta has introduced its new products, Anti-Microbial Gloves, which has received orders over 10 countries, including orders from a major German medical supplies company. It is still waiting to secure the Federal Drug Administration’s approval to enter the US market.  

 

In terms of downsides, it would be the increased gas tariff, the difficulty in securing buyers for its additional output, the USD/RM exchange fluctuations and the potential impact of the US-China trade war. 

 

I would target HARTA at the price of 4 ringgit 30 sen, as a medium to long term investment. Also, I have included price targets set by other financial institutions for reference purposes. 

 

In my next video, I would discuss Tenaga Nasional Berhad.  

 

All right. Thanks for watching this video. If you enjoy watching, don’t forget to subscribe to the channel, like it and share it. 

 

As usual, no part of this video is considered as investment advice, and the usual disclaimer applies.