Latest news with #PATMI
BusinessToday
5 days ago
- Business
- BusinessToday
HLIB Has "Uncertain Outlook" View On Hartalega
Hartalega Holdings Berhad reported a core Profit After Tax and Minority Interest (PATMI) of RM12.2 million for the first quarter of its financial year 2026 (1QFY26), a 7.0% increase quarter-on-quarter (QoQ) but a significant 72.7% drop year-on-year (YoY). While these results were broadly in line with HLIB Research's expectations, they fell short of consensus forecasts. The 1QFY26 core PATMI was calculated after excluding extraordinary items of RM0.4 million, which included gains from property, plant, and equipment disposal, fair value gains on derivatives, and a reversal of allowance for expected credit loss (ECL) on trade receivables. These positive adjustments were partially offset by RM15.4 million in realized and unrealized forex losses. No dividends were declared for the quarter. Revenue Decline Despite Cost Controls Hartalega's revenue declined by 9.6% QoQ, primarily due to a 3.1% drop in sales volume and a 6.7% decrease in average selling prices (ASP) in Ringgit terms. The lower sales volume was attributed to front-loading activities by US customers in 3QFY25, potential transhipment activities via Vietnam, Thailand, and Indonesia, and intense competition from Chinese players in non-US markets. The weaker ASP was a result of competitive pricing by regional players amid subdued demand, a 3.2% depreciation of the US Dollar against the Ringgit, and a 3.3% decline in NBR prices. Despite the revenue contraction, core PATMI improved QoQ, boosted by lower operating costs stemming from ongoing automation initiatives and headcount rightsizing. On a YoY basis, revenue decreased by 5.3%, with core PATMI dipping at a greater pace due to negative operating leverage, lower net interest income, and higher depreciation expenses. Outlook and Strategic Initiatives During its recent briefing, HLIB said Hartalega expressed continued concern over the industry's supply-demand equilibrium, now projecting a potential delay in rebalancing from 2026 to 2029. To maintain competitiveness, the company plans to invest RM200-300 million over the next 9-15 months in automation and energy efficiency enhancements. These initiatives include revamping glove stripping machines, installing AI-driven vision inspection systems, and modifying production lines for better energy and chemical efficiency. For 2QFY26, Hartalega aims to deliver approximately 2.2 billion pieces per month, an increase of about 12% QoQ, driven by an anticipated pickup in orders from US customers starting in August 2025. Group blended ASP is expected to remain flat QoQ, with the weakness in generic medical nitrile rubber gloves offset by a shift towards more premium products. Input costs for NBR are expected to be flat, while natural gas tariffs are projected to decline by 1.5% QoQ. Tax Bill and Financial Position Separately, Hartalega announced it received additional tax bills from the Inland Revenue Board (IRB) amounting to RM101 million (RM0.03 per share or 2.2% of market cap) for the years 2017-2022. The company is currently seeking legal advice and evaluating options, including initiating a formal appeal. Despite this, Hartalega maintains a strong financial position with a net cash balance of RM986 million (or RM0.29/share) as of 1QFY26, providing financial flexibility. HLIB Research is maintaining its FY26 forecasts but has cut its FY27 forecasts by 13.5% to reflect a more uncertain outlook. They are introducing an FY28 core PATMI forecast of RM243.8 million. The research house reiterated its 'Hold' recommendation on Hartalega, with a lower target price of RM1.32 (down from RM1.48).
BusinessToday
28-07-2025
- Business
- BusinessToday
Alpha IVF Reported RM57 Million PATMI For FY25, Looks Set For Philippine Expansion
Alpha IVF Group Berhad achieved its highest-ever profit after tax and minority interests (PATMI) of RM57.5 million in the financial year ended 31 May 2025 (FY2025), a 8.5% increase from RM52.9 million in the previous year. The strong bottom-line performance was supported by revenue growth of 5.5% to RM176.8 million in FY2025 from RM167.6 million in the previous year, led by the Group's Malaysia operations, particularly the foreign patient segment. Malaysia operations contributed RM157.2 million, or 88.9% of the Group's total revenue in FY2025, a 16.0% increase from RM135.5 million in the previous year, or 80.9% of the Group's total revenue. The Group's Singapore operations contributed the remaining RM19.6 million. For Malaysia operations, local demand remained stable, while foreign patient revenue regained momentum this quarter, with all key markets, including China, Indonesia, and Singapore, recording an upward trend. The contribution of foreign patients to Malaysia's operations saw significant growth in FY2025, rising to RM110.1 million or 70.0% of total revenue, from RM81.8 million or 60.4% in FY2024. In the fourth quarter ended 31 May 2025 (4Q25), the Group's revenue rose 7.0% year-on-year to RM50.0 million from RM46.7 million previously, while PATMI saw a 14.7% increase to RM16.1 million from RM14.0 million in the corresponding quarter of the previous year. The Group declared a second interim dividend of 0.50 sen per share in respect of FY2025, payable on 29 August 2025. Together with the first interim dividend of 0.50 sen per share paid on 31 December 2024, the total dividends for FY2025 amount to 1.00 sen per share, representing a payout of RM48.6 million or 84.6% of PATMI. This is well above the Group's commitment to distribute at least 60% of its annual PATMI for shareholders. The medical outfit announced that it is establishing a new, full-fledged fertility treatment centre in Tuguegarao, Philippines, marking the Group's second planned facility in the country. The group said the centre will provide minimally invasive surgery in Gynaecology, which is expected to contribute significantly to the centre's revenue. Related
