Latest news with #Hartalega
Yahoo
30-05-2025
- Business
- Yahoo
With 47% ownership, Hartalega Holdings Berhad (KLSE:HARTA) insiders have a lot riding on the company's future
Hartalega Holdings Berhad's significant insider ownership suggests inherent interests in company's expansion 56% of the business is held by the top 3 shareholders Institutions own 21% of Hartalega Holdings Berhad We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. A look at the shareholders of Hartalega Holdings Berhad (KLSE:HARTA) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 47% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. So it follows, every decision made by insiders of Hartalega Holdings Berhad regarding the company's future would be crucial to them. Let's delve deeper into each type of owner of Hartalega Holdings Berhad, beginning with the chart below. View our latest analysis for Hartalega Holdings Berhad Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. We can see that Hartalega Holdings Berhad does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Hartalega Holdings Berhad, (below). Of course, keep in mind that there are other factors to consider, too. Hartalega Holdings Berhad is not owned by hedge funds. From our data, we infer that the largest shareholder is Kam Kuan (who also holds the title of Top Key Executive) with 40% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. Budi Tenggara Sdn Bhd is the second largest shareholder owning 8.6% of common stock, and Kumpulan Wang Persaraan holds about 6.5% of the company stock. To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that insiders maintain a significant holding in Hartalega Holdings Berhad. Insiders own RM3.1b worth of shares in the RM6.5b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders. With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hartalega Holdings Berhad. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Our data indicates that Private Companies hold 9.7%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research. While it is well worth considering the different groups that own a company, there are other factors that are even more important. I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph. Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
13-05-2025
- Business
- The Star
Stiff competition to affect Hartalega's prospects
RHB Research noted signs of order book recovery, with May orders rising to 2.3 billion piece. PETALING JAYA: Despite a strong earnings rebound for its financial year ended March 31, 2025 (FY25), Hartalega Holdings Bhd 's prospects remain clouded by intense competition and a prolonged industry recovery, say analysts. While the glove maker's fundamentals have improved, research houses warned that structural oversupply, volatile foreign exchange trends and geopolitical factors could temper further upside in the near term. TA Research noted that Hartalega's FY25 results – which saw net profit surge to RM74.54mil from RM12.5mil in FY24 – were encouraging, but earnings momentum may flatten in the coming quarters. 'We reduce our FY26-FY27 earnings projections to RM68.5mil and RM107.4mil (previously: RM140.2mil and RM191.3mil), respectively, after lowering the sales volumes by 8% and 10.9% and incorporating FY25 numbers into our model,' the brokerage said. It added that sales volumes were expected to remain flat in the first quarter of FY26 (1Q26), with utilisation rates hovering between 60% and 70%, while average selling prices (ASP) could fall by around 5% quarter-on-quarter (q-o-q) due to lower raw material costs. RHB Research highlighted Hartalega's current valuation as attractive, trading below historical means. 'Hartalega is currently trading at 1.65 times 2025 price-to-book-value (P/BV), which is below its three-year historical mean of 1.8 times,' it said. RHB Research noted signs of order book recovery, with May orders rising to 2.3 billion pieces, and guided volume for 1Q26 expected to reach up to 6.5 billion pieces – indicating a 6% q-o-q growth. Still, RHB Research trimmed its target price to RM2.83 from RM3.30, factoring in foreign exchange adjustments and concerns over 'the higher risk associated with easing trade tensions between China and the United States'. The research house maintained its 'buy' call on Hartalega. Hong Leong Investment Bank (HLIB) Research said: 'Hartalega shared a cautious outlook, indicating that the industry's supply-demand equilibrium could be delayed from the previously projected 2026 timeline.' However, HLIB Research acknowledged that the United States' 145% tariff on Chinese vinyl gloves could eventually benefit Malaysian nitrile glove makers by shifting demand as nitrile gloves become more price-competitive.
BusinessToday
13-05-2025
- Business
- BusinessToday
Glove Sector Recovery Dashed After US-China Tariff Pause
Hong Leong Investment Bank Bhd (HLIB) Research has downgraded the glove sector to NEUTRAL from Overweight, citing rising uncertainty in the global supply-demand balance following tariff adjustments between the United States and China. The research house maintained a BUY call on Kossan with a lower target price of RM2.30, kept HOLD on Hartalega at RM2.16 and downgraded Top Glove to SELL with a revised target price of RM0.76. HLIB said the recent agreement between the US and China to temporarily reduce tariffs for 90 days from 14 May 2025 could disrupt the ongoing demand recovery for nitrile gloves. The tariff on most Chinese imports, including medical and surgical rubber gloves and vinyl gloves, will be lowered from 145% to 30%. This could weaken the shift from vinyl to nitrile gloves which had supported Malaysian players in absorbing excess supply. Despite the tariff reduction, Chinese nitrile gloves remain less cost-competitive than Malaysian and Thai alternatives. The estimated landed price of Chinese nitrile gloves in the US is expected to drop to US$27 per 1,000 pieces, still above Malaysia's US$17.6 to US$18.7 range. Vinyl gloves from China, however, will see a sharper drop in landed prices to US$11.7 to US$13 per 1,000 pieces, making them significantly more competitive. HLIB also flagged structural concerns from China's largest glove maker, Intco Medical. Intco recorded a core profit of RMB1.08 billion in 2024 and increased its production capacity by 8 billion pieces per year. Its capex on glove manufacturing rose to 70% of total growth capex, backed by a strong net cash position of RMB5.8 billion or RM3.6 billion. These developments signal that Intco is likely to continue expanding despite earlier expectations of a more conservative approach due to geopolitical risks. The analysts added that Intco has also gained a competitive edge through automation. Its operations reportedly use 50% less labour than Hartalega, one of Malaysia's most efficient producers. With labour costs accounting for up to 15% of cost of goods sold for Malaysian glove makers, this gives Intco an estimated cost advantage of US$1 to US$1.7 per 1,000 pieces even before accounting for lower costs in Southeast Asian countries like Vietnam and Indonesia. While there remains some hope for Malaysian players if the tariff negotiations between the US and China end unfavourably, HLIB noted that Hartalega has indicated the market may only reach equilibrium beyond 2026. A potential shift in demand from vinyl to nitrile gloves could support this recovery, but the situation remains fluid. Among the stocks under its coverage, HLIB continues to favour Kossan for its customised product strategy, strong automation and healthy balance sheet with RM1.6 billion in net cash. Meanwhile, the downgrade on Top Glove follows a recent share price rally with analysts adjusting the valuation multiple to reflect the rising risks. Related
New Straits Times
12-05-2025
- Business
- New Straits Times
Hartalega downgraded amid sector uncertainty despite earnings surge
KUALA LUMPUR: Hartalega Holdings Bhd has been downgraded to a "hold" rating from "buy" as analysts grow cautious over the company's near-term prospects amid increasing uncertainty in the global glove industry. Hong Leong Investment Bank Bhd (HLIB Research) has lowered its target price for Hartalega to RM2.16 per share, citing increased uncertainty over the industry's supply-demand equilibrium as it heads into 2026. The new target price is based on a more conservative price-to-earnings (P/E) multiple of 26 times, down from 32 times, applied to the glovemaker's unchanged calendar year 2026 earnings per share (EPS) forecast of 8.3 sen. The revised valuation comes despite Hartalega's stronger-than-expected earnings in the fourth quarter ended March 31, 2025, which came in at 192 per cent of HLIB Research's full-year forecast. Hartalega's core profit after tax and minority interests (PATMI) for the fourth quarter of financial year 2025 (4QFY25) came in at RM11.4 million, representing a significant year-on-year increase of 8.9 times, despite a 54.6 per cent decline compared to the previous quarter. This brought the group's full-year FY25 core PATMI to RM68.6 million—a 4.4-fold jump from the previous financial year—driven by higher-than-anticipated revenue supported by more favourable average selling prices (ASP). "Despite the upbeat results, we maintain our FY26–27 forecasts as we expect the performance in the first quarter of financial year 2026 (1QFY26) to be weighed down by the ringgit's 4.3 per cent appreciation against the US dollar since late April 2025," it said in a note. On a positive note, HLIB Research said the current 145 per cent US tariff on China imports could encourage a gradual demand shift away from vinyl gloves to nitrile rubber gloves, mainly from Malaysian manufacturers, by US buyers. This, it said, could help to absorb the additional rubber glove capacity coming from Chinese players. China dominates the US vinyl glove market with a 70-75 per cent share and has been selling for US$9-10 per 1,000 pieces. However, the imposition of the tariff would drastically inflate the price of Chinese vinyl gloves to US$22-24.5 per 1,000 pieces, which is more expensive than generic nitrile rubber gloves at US$15-16 per 1,000 pieces. "While both vinyl and nitrile gloves are Type 1 allergy-free, nitrile gloves offer superior elasticity and provide a better barrier against contamination. "Moreover, the steep US reciprocal tariffs on Vietnam at 46 per cent and Indonesia at 32 per cent, presently on a 90-day pause, could discourage Chinese glove makers from expanding there," HLIB Research added. RHB Research, meanwhile, said that its late-March sector upgrade has largely materialised, with stocks under its coverage posting gains of 7 to 15 per cent. The firm has maintained a BUY on Hartalega with a revised target price of RM2.83 (from RM3.30), offering 33 per cent upside potential. It noted that Hartalega is currently trading at 1.65 times its 2025 price-to-book value (P/BV), which is 0.3 standard deviations below its three-year historical mean of 1.8 times. The research firm views this valuation as attractive, especially in light of the anticipated earnings recovery in 1QFY26 following the completion of the inventory adjustment cycle. "The management guided that the May orderbook had picked up to 2.3 billion pieces from an average monthly orderbook of 2 to 2.1 billion pieces, with 1QFY26 guided volume to be within the range of 6 to 6.5 billion pieces, indicating a 6 per cent QoQ growth at the higher end of guidance.
New Straits Times
08-05-2025
- Business
- New Straits Times
Hartalega's US market momentum at risk if tariffs on Chinese glove makers are eased
KUALA LUMPUR: The bullish outlook for Hartalega Holdings Bhd in gaining further market share in the US could come under pressure if existing tariffs on Chinese glovemakers are eased, said Kenanga Research. The research house noted that Hartalega, which has a high US sales volume that accounts for between 50 per cent and 60 per cent of sales, would have had the most to gain. "Even so, we believe that in terms of price per book value (PBV) valuation, its share price is trading at a level commensurate with pre-tariff imposition. "Before the US tariffs imposition on China glove glovemakers in the September calendar year 2024 (CY24), Hartalega was trading at between 1.8 times to 2.0 times PBV. Assuming 2 times FY26 book value per share, the stock should trade at RM2.50," it said in a note. Hartalega pleasantly registered a profitable fourth quarter (Q4) FY25 against a guidance of loss or breakeven during the Q3 FY25 results briefing. The FY25 results were within Kenaga Research's expectation but missed consensus by 12 per cent. "We consider Q4 FY25 results to be above the company's past guidance of a loss or breakeven from the Q3 FY25 analyst briefing," it said. Looking into Q1 FY26, Kenanga Research said Hartalega guided sales volumes to rise between one per cent and eight per cent quarter on quarter (QoQ) but expects a marginally lower average selling price (ASP). Looking into 1H FY26, the firm noted that the company expects strong orders recovery due to inventory replenishment. "We cut our FY26 net profit by 26 per cent on forex as we prudently assume, for now, a cost pass-through to customers would be challenging. "We lowered Hartalega's target price to RM3.20 from RM4.00 previously and reiterated the Outperform call on the stock," it added.
